I think setting some 2020 goals down in electrons will be valuable. For me, it will hopefully cause some reflection as I set the goals and create some accountability by publishing them on the blog. I hope it will also inspire us all to approach 2020 with some intention and a “growth mentality.”
Goal 1 – Invest $50,000
This goal is not a huge stretch for me but it will require some discipline. I will plan to max out my 401(k) and another similar account that my wife has (a governmental 457 plan), with the new for 2020 $19,500 limit. I will also try to max out my HSA with the new limit of $7,100. If I add in an employer match of $5,000, I would add $51,100 to my investments in 2020. The hardest part is going to be maxing out my spouse’s 457. I’ve contributed to it in the past but have not yet been able to max it out for the year. I will try to motivate myself to really get it done by focusing on the tax savings I’m just blowing by leaving that space unfilled each year.
I think one sort of “nudge” I might try is to go ahead and set monthly contributions to max the 457. It seems like this could help overcome the psychological “block” of never being able to max that account (with my 401(k)). Then, I can dial back my contributions to the 401(k) a bit if needed, but I’m already used to maxing that one out (well, only for a few years…but still) so the habit is sort of there. It is also less cumbersome to change the contributions to that one.
Goal 2 – Achieve Savings Rate of 60%
This savings rate goal is related to my investing goal but is not the same. I will need some additional savings to meet this goal based on how I calculate the savings rate. Principle reduction on my primary residence and some deferred compensation and other little sundries will go into this one as well. A 60% mark has been about my run-rate for the last couple of years. I just want to make sure I maintain this going forward.
Goal 3 – Book a Trip Using Travel Rewards
I just started dabbling in travel rewards at this point, opening my first Chase Sapphire Preferred rewards card and using it to pay my property taxes in order to (in large part) hit the bonus spending mark. I just got the 60,000 bonus points for spending $4,000 in the first three months.
It has been pretty fun so far (to earn and track the points…kind of like a game), but I’m not 100% sold on the economics/value for “brain damage” ratio yet (versus simple cash back cards). From what I can tell, the real value largely depends upon the terms of your redemption [which seems like it may be a pain to maximize].
Thus, my goal is to go through a redemption/planning a trip this year to see for myself. If you decide to check out the Sapphire Preferred (with potential for 60,000 bonus points) and sign up via this link I can get some more points (and would appreciate it).
Goal 4 – Read 12 Books
According to Good Reads, I read 11 books in 2018. That seems kind of weak to me, but in my defense I have a toddler and I read a lot of “law stuff” for work. I’m not 100% sure I got all my books logged in Good Reads, but I will try and do a better job tracking this in the upcoming year. If nothing else I can set a good baseline. Right now, I’m reading When Genius Failed and Concentrated Investing. I also have Gibbon’s Decline of the Roman Empire “open” but I’ve not made much progress. I may have to give it up.
Goal 5 – Achieve Body Fat Composition Below 20%
I have been reasonably successful in getting in better physical shape over the last year or two. I’ve been lifting weights (mostly dead lifting Taleb style but without the references to ancient Greece) and doing some intermittent fasting. I find the fasting works pretty well for me. It is seemingly easier/more natural for me to just skip meals than to eat small portions more frequently. I also think there may be something to the hormonal/metabolic impacts of fasting that goes beyond just the “caloric deficit” that fasting may produce. Here’s one of the books I read as an introduction to the subject:
I was going to say “get abs” for my goal, but I think this will be a nice next step (hopefully on that path).
I will plan to track these goals in my monthly savings/stash updates as the year progresses. I hope you all have a fantastic 2020!