Changed Mindset

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. I like how my thinking has changed over time.  Gone are the days when I would just spend my annual bonus like a drunken sailor.  Not that I ever was a drunken sailor, but you get the idea. I just found out my annual performance bonus for the year.  My wife and I had plans for it, we were thinking of putting a screened-in deck on the back of our house.  Instead, we are doing the very boring thing of just putting it into savings.  That would not have happened 10 or 15 years ago.  It’s nice to see the change. Annual Bonus It’s not technically an annual bonus, but I have received one every year.  I have performed well enough to merit one every year that I have been with the company.  We had been given warnings that the bonus pool this year was not going to be as big as it had been … Read more

Performance Review Time

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. My annual performance review has come and gone this year. I always seem to be harder on myself than my boss.  This is a good thing, as he thought I performed well over the past year.  There were a couple of areas he thought I should work on and I don’t disagree with his assessment.  Overall he liked my contributions to the team and hoped for more of the same in the coming year.  In conjunction with the performance review is the compensation review.  The money is tied to performance, so the better you perform, in theory the more money you can earn.  This is all subject to the company’s overall performance.  The money is broken into 2 pieces, salary and bonus.  Naturally, I’m going to give you a peak into how much I received and what I am planning on doing with it. The Salary In my opinion, I would almost always rather have … Read more

Tax Comparison

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. Tax time has come and gone, thankfully. I wouldn’t say that I dread it.  Since I plan accordingly for it throughout the previous year, it usually is a non-event.  It is more of a time annoyance than anything else.  I did receive a small refund from both the federal and state governments.  What is more interesting to me, is comparing the return this year with my returns from previous years, and looking at the tax return as a window into my financial year.  I know complete surprise from the numbers guy. Wages It was not my best year ever, but it was close, 2014 was the best. Looking at the wages line on my federal return, does not quite tell the whole story.  The reason for this is all of my health benefits and 401k contributions are removed from my wages and only the net number is reported.  On a gross basis, I had total … Read more

Surprise

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. Whenever I have budget surprises, they normally aren’t the happy kind.  They usually mean something has been more expensive than I anticipated or there was an unexpected expense.  This time is different however.  There is going to be a surprise source of income. My wife will start bringing in an income starting in September.  She will be providing childcare for someone 5 days a week.  She will be earning between $1,000 and $1,400 dollars a month depending upon the number of days she watches the baby.  Since I don’t count on her for any income, this certainly will be bonus income. What to do? The easy answer to this question would be to save it all.  Though it would not be easy to convince my wife this is the best course of action.  So, I need to balance saving some of the extra income with the need to enjoy some if it too.  What I … Read more

Just a Feeling

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. It has occurred to me that I seem to be managing my money less in terms of hard numbers and more in terms of how I feel. Granted, I still have set budget amounts for my normal monthly spending items, but savings is where things have shifted.  It is possible that with the recent stock market volatility that I have grown hesitant to add more to my Vanguard account or it is because I just don’t like the way my Capital One savings account looks.  Either way, I have decided to make a change. 50/50 My savings are not in a bad position, but I just don’t feel comfortable with the level that it’s at right now. There have been some recent hits to savings that have been easily absorbed, but have reduced the overall level in the account. Some things like pre-buying my oil for the winter are known and expected, but others like … Read more

Bonus Time Again

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. One of the benefits of working for a larger company is that there usually is a defined plan for an annual bonus.  Bonus plans can go by various names, but in the end they all boil down to extra money.  It is bonus time again where I work. My Bonus History I usually try to anticipate what bonus I might get and what I would do with the extra money. This year was a little harder for figure out what I might be getting. Last year, I received a pretty big bonus of $20,000.  Our CEO had communicated a couple months back that the bonus pool would be larger this year compared with last year.  So, what did I guess?  I ran some calculations for a range of bonuses, $10,000 to $25,000.  I will admit the $25,000 was pretty optimistic, but I guy can dream, right? I received on the lower end of the range, … Read more

There’s a New Way to Look at Retirement Calculations?

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. This article I found in The Wall Street Journal somewhat surprised me.  It discusses how advisors are now counseling their clients, not on the size of their nest egg, but rather on how much income it might be able to generate.  The surprising thing to me was that this is what I have been doing all along. It was probably about 5 years ago, that I wanted to seriously analyze my retirement savings.  I had some decisions to make and needed to figure out what my retirement savings would look like in 30+ years.  I tried looking at various on-line calculators, but found myself disappointed in them.  Essentially, the calculators weren’t robust enough for me.  I couldn’t change some basic assumptions that were built into them.  So, I built my own.  It is simply an Excel spreadsheet that takes my assumptions and turns them into an income projection.  The key to the calculations are the … Read more