You know you are a personal finance blogger when the prospect of making new retirement contributions makes you so excited you can’t stop looking over the 401K plan document.
1. Max out 401K ($16,500):
I reach 401K eligibility in July, so that means I will have 6 months to contribute for 2010. That will be $2,750 per month. My total net income – including freelance earnings – will cover my expenses during that time. But I won’t have much money for anything else.
2. Max out Roth IRA ($5,000):
I currently have $2,000 for 2010 – another $3,000 and I’ll be done with this goal. I’ll concentrate on Roth IRA goal in April, May, and June so it will be taken care of by the time July comes around.
If I make all these goals, at the end of 2010 I will have over $50,000 in retirement savings. These are aggressive goals for me, but I need to take advantage of every chance I have to save for when I’m a cool old lady. In addition to the purely financial goals, I also want to do something nice for my parents. This means I will:
3. Send Mom & Dad on a weekend trip ($200-$300?):
One of my favorite presents for my parents is a night or two at a high-end hotel for weekend getaways. I put them up at the Mandalay Bay in Las Vegas (Christmas 2008) and the Omni Hotel in San Diego (Summer 2009). They would never spend that kind of money on themselves, so it makes me happy to be able to do something nice for them. Mom apparently still talks about the Vegas trip to my aunt and my family. Score in the Good Daughter category.
Now that I have a job, it’s something I can resume doing. Perhaps a trip to Santa Barbara is in order. There are so many nice bed-and-breakfasts in that city… let me know if you recommend any one in particular.
image source: searchenginepeople.com