LuxFI

I provided a brief introduction on who I am in my first post, but now I want to delve deeper and share my achievements in 2023.

I mentioned before that I am a woman, but I want to mention I am a person of color as well.

My upbringing was rooted in the challenges my parents faced during a time in the US when privileges were not granted based on skin color, and they experienced the harsh reality of segregation in their 20s.

Growing up in a lower-middle-class environment, I witnessed my parents achieve success later in life. However, I did not benefit from their prosperity during my formative years. When I pursued higher education, I relied on academic scholarships, strategically choosing Computer Science as my major to secure a stable income.

Navigating the tech field as a woman presents its unique set of challenges, but that’s a discussion for another time. I share these aspects of my background to emphasize that I did not enjoy any special privileges or financial safety nets.

In August 2023, a realization hit me. At 42, I felt a pressing need to get my financial life in order. Despite a healthy salary, I discovered that blindly entrusting my finances to a financial advisor was not yielding optimal results. The breaking point came when I sought advice on maximizing contributions to my HSA, only to find my advisor unaware of this opportunity. And this leads me to my wins:

1. I broke up with my financial advisor (FA)
2. I invested time and effort in researching how to invest strategically
3. I compiled all of my financial information, utilizing tools like Excel initially and later opting for Monarch (I am NOT being sponsored by them, I just want to share what I’m using). It does cost a yearly fee.
4. I maxed out my pre-tax 401
5. I did a backdoor Roth (We’ll talk about this in a future post)
6. I set up an automatic mega backdoor Roth (We’ll talk about this in a future post)
7. I committed 50% of my take-home pay to investments over the past 4 months
8. My 401K was invested in SO many stocks because my FA told me to. I revamped my 401K portfolio, consolidating it into a total market index (95%) and a bond (5%)
9. Dividends for 2023 (total from my non-taxable and taxable accounts): ~$8458

As I look ahead to 2024, I am filled with excitement. These strategic moves not only reflect my commitment to financial independence but also mark a significant step towards taking control of my financial destiny. Stay tuned for more updates and insights on this exhilarating journey!

Side note: Thought I am not being sponsored by Monarch, I do have a referral code if you’re interested in trying it out.