Hey reader, we achieved big FIRE goals this week!
Al and I both found out what our salaries are going to be for the new biennium at the GovJobs, and we maxed out our 457b deferred compensation contributions! We had been talking about doing slower increases for the contributions, but ultimately we decided to do it now. Short term pain, long term gain, right?
When we started with the GovJobs, neither of us knew the details of the 457’s and what they could do for us in the long-run. Let’s look at some numbers about the contributions:
- We are contributing $791/paycheck, which is $3,166 (pre-tax) for our household.
- Although we won’t hit the limit for 2019, we will hit the $38k limit for the following year and plan to continue those contributions.
- The software application says that I am contributing 215% toward my goal and would make $105k/year in retirement if I retire at 65. Little does it know…
- It also says that for my age range (30-39), gender (female), and salary range ($75-$100k), my average peer is contributing 6%, the “Top Peers” (whatever that means) are at 15%, and I am at 28%.
It’s going to be a little painful this summer, because we have some big expenses coming up. Since our whole HVAC system needed to be replaced, we’ll be financing the replacement with a 0% 12-month loan, which I’m estimating will cost us over $1k/month (estimating around $15k for total replacement).
And now our paychecks will be smaller. But I’m pretty sure we can swing it because we don’t have any other major plans in the works for things like major trips/vacations, large expenses, etc. Honestly, we just need to start living within our (new) means.
What FIRE goals are you working on, reader?