2020 Goals and Quarterly Updates

2020 Goals and Quarterly Updates

/ humblefi / Leave a comment
  • Update 1: 02/15/2020
  • Update 2: 04/18/2020
  • Update 3: 07/02/2020
  • Update 4: 10/03/2020
  • Update 5: 12/22/2020

History

My FIRE journey started in 2014…..07/21/2014 to be exact is when I wrote the About section of this blog. It has been almost (5) 6 years now on the FIRE journey. I went from accidentally learning about FI to earning the following Passive Income dollars per month from 2014 to 2019.

  • 2014:      $171.02
  • 2015:      $705.80
  • 2016:      $840.80
  • 2017:     $1040.13
  • 2018:     $1380.78
  • 2019:     $868.90
  • 2020:     $733.73 ($650.00 target)

New Tracking system starting 2020: 

My Financial Independence criterion, that I followed for the period 2014-2019, is listed here. The spirit of that has not changed at all…but I have decided to change the way I track the path to reach that goal. Why? I educated myself on a different way of looking at my portfolio called Bucket Investing Approach. I have listed my rationale and explained how I want to use the Bucket Investing approach in my financial life here.

With that in mind, I am going to introduce my FIRE targets for 2020 and track them via a new tracking format. From this FI target table, I will derive the 2020 yearly financial goals listed below the table.

Financial Independence Target For Life
Bucket 1: CASH 3 yrs of living expenses
Bucket 2: BONDS 7 yrs of living expenses
Bucket 3: EQUITY 30 yrs of  living expenses
College Fund 1 $100K
College Fund 2 $100K
Mortgage Loan-to-Value ratio 0% (fully paid off mortgage)
Medical Fund $100k….via HSA

Using the above tracking table, goals for each year from now on will be derived.

Financial Goals for 2020

For 2020, I have thought about the following mini goals to get me closer to the financial independence targets listed in the previous table.

  1. Contribute $12K to Bucket 1 (CASH bucket)
    1. 03/31/2020 Done
    2. 06/30/2020      
    3. 09/30/2020      
    4. 12/31/2020      
  2. Contribute $0K to Bucket 2 (BOND bucket)
    1. 03/31/2020 Done (Nothing to do this year)
    2. 06/30/2020      
    3. 09/30/2020      
    4. 12/31/2020      
  3. Contribute $39K to Bucket 3 (EQUITY bucket) via 401K
    1. 03/31/2020 29.33% Done
    2. 06/30/2020 90.30% Done     
    3. 09/30/2020 100%    Done     
    4. 12/31/2020      
  4. Keep Loan-to-Value (LTV) ratio <= 75% for 2020
    1. 03/31/2020 75.13% LTV (Realtor.com Median price)
    2. 06/30/2020 76.29% LTV (Realtor.com Median price) 
    3. 09/30/2020 70.51% LTV (Realtor.com Median price)     
    4. 12/31/2020  67.72% LTV (Realtor.com Median price)
  5. Max out HSA contributions ($7100)
    1. 03/31/2020 $4615.71
    2. 06/30/2020 $5851.00      
    3. 09/30/2020 $6042.08     
    4. 12/31/2020 $7100.00 Done          
  6. Contribute $1800 to 529 College Fund 1
    1. 03/31/2020 $1,505.00
    2. 06/30/2020 $2105.00 Done      
    3. 09/30/2020      
    4. 12/31/2020  $2311.00    
  7. Contribute $1800 to 529 College Fund 2
    1. 03/31/2020 $600.00
    2. 06/30/2020 $900.00    
    3. 09/30/2020 $2100.00 Done
    4. 12/31/2020 $2900.00     
  8. Estate Planning (Will, POD beneficiaries, Caretaker for children)
    1. 03/31/2020 No progress
    2. 06/30/2020 No progress     
    3. 09/30/2020 No progress      
    4. 12/31/2020 No progress