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…

Net Worth Summary

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 tasks that I do with my finances is to track my net worth. It’s my scorecard on how I am doing financially.  I have only been diligently tracking the number since the end of 2008.  I am positive the number wasn’t pretty before that time, as I was not very good at managing my finances before then.  So, how did I do this year and what were the drivers of the overall change?  Let’s take a look. Net Worth My net worth increased 14.8% from the end of 2014 till the end of 2015. It was a roughly $19,000 increase year-over-year.  I will say that I am pleased with the number.  It’s going up and the markets did not contribute much of anything to the increase.  The increase was driven entirely by debt reduction and savings.  It is also a far cry from the roughly -$19,000 net worth I had when I … Read more…

Job Loyalty

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. Recently, the company I work for announced the benefit changes for the upcoming year. One change in particular did not go down well with the employees. People were angry, bitter and talked about disloyalty from the company. I’ll talk about the numbers surrounding the benefits in another post. In this one, I’d like to talk how people felt the change was personal, that their friend had betrayed them. I never got that worked up about it and mainly just shrugged the change off. 401k Change Maybe it is because I tend to be more analytical than most that I didn’t get too upset about the change. All the company was doing was changing when they were going to give you your 401k matching contribution. Instead of matching each paycheck with your contribution, they were changing to a once a year match in the 1st quarter of the following year. While not ideal, and certainly not … Read more…

Retirement Analysis Revisited

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. With the recent 2016 benefit announcement by my company, I needed to do some modeling. Specifically, I needed to model out the impact of the 401k change. The company was going to be moving from a pay period match to an annual lump sum match.  After some fierce employee backlash, the company changed its mind, but not before I had gotten to run through some numbers in Excel. My Retirement Analysis I knew that changing the timing of the 401k matching contributions from a pay period match to an annual match wouldn’t be good for me. The question was, how severe would the impact be? I kept my first pass at the impact pretty simple. I kept my salary constant and just wanted to see the lost interest over the next 25-30 years. I kept the investment return constant at 9%. The impact in the first year was about $400. By the end of the 25 … Read more…

Woohoo!! Another Raise!!

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. Recently, I let you peek in on what I did with my performance bonus for this year.  Now, I am going to let you in on what I did with my salary increase for this year.  I find out both numbers at the same time, but the bonus is paid in March and the salary increase does not begin until the first April paycheck.  This year, I received a 2% increase on my base salary.  This translated in $1,900 more per year or just over $155 a month.  The next question is what did I do with the extra money? Dividing the Extra Over the last few years, raises generally have been used to help stabilize the budget and plug any deficits there may have been.  This year was different though.  I have been actively minimizing our expenses whenever possible.  The most notable one recently was my mortgage refinancing that I wrote about.  That freed … Read more…

What Would I Sacrifice for Retirement?

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. That’s the question I started asking myself after reading this article.  The article discusses how forgoing cable, average bill $80, could amount to a million dollars saved over the course of 50 years.  So, naturally I began to think what I was willing to sacrifice in order to retire. Current Expenses I think I would be hard pressed to cut any of my current expenses in order to increase my retirement savings.  I currently contribute 7% to my 401k, 6% to a traditional 401k and 1% to a Roth 401k.  My employer matches the 6% and kicks in an additional 2%.  That’s a total of 15%.  In addition to that, I began contributing to an HSA (health savings account) this year. In total, between my contributions and my employer’s contribution, I am saving $6,550.  I only anticipate needing around $3,000 to cover medical expenses this year, assuming this year was like last year.  That means … Read more…

Roth 401K versus Traditional 401K

The following is a staff writer post from MikeS.  MikeS 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 am happy to say that I am increasing my retirement contributions starting in January.  As I outlined previously, I was changing my company benefits for next year.  With those changes, I also analyzed how my take-home pay was going to be impacted and whether I needed to adjust my federal income-tax withholdings.  Since, I was setting aside a larger amount of money pre-tax via the HSA; I was able to increase my deduction number. This has enabled me to increase my retirement plan contributions so I can afford to retire quicker or use my accounts for something like annuities in the future.  My first thought was simply to increase my 401k contribution by 1%.  But then I realized that I had another option, I could contribute to my Roth 401k.  So which one to choose?  This presented a problem, a nice problem to have for sure. The Difference Between a Roth 401k and Traditional … Read more…