LuxFI

Hello friends! I know I’m very behind in posting. I have been focusing on restructuring my finances at the start of the year. I am back on track to continue posting twice a week.

Remember that I broke up with my FA? It happened at the end of December so I’m waiting for my money to transfer over to my brokerage. So this leads me to my goals for 2024:

Task	Complete?
Reinvest my brokerage and IRA money coming from the brokerage I ended the relationship with, it was spread across SO MANY stocks	No
Invest 50% of my pay to my brokerage and retirement accounts	Yes
Set up to max out HSA	Yes
Set up to max out pre-tax 401K, once my pre-tax is maxed do my after-tax contributions for the mega backdoor roth	On-going
Max out IRA contribution and do backdoor Roth	Yes
Contribute to my Emergency Fund	On-going
Travel goals of going somewhere at least eight times	On-going
Get a pay raise	On-going

If you don’t know:

• Max contribution for 401K pre-tax is $23,000 (catch up contribution if over 50 is $30,500)
• Max contribution for total 401K is $69,000
• Max contribution for IRA is $7,000 (catch up contribution if over 50 is $8,000)

If you go through something similar and break up with your financial advisor, let me share what I did. For the money that came in my IRA I sold all the stocks and reinvested as I will not be taxed. Unfortunately, I could not do the same with my brokerage account as selling all the stocks would have been a huge tax liability 😦 So to move the funds around to my liking I made a spreadsheet of all the stocks and their associated expense ratio and how many I owned.

The problem with not understanding what you’re invested in is I found that many of my stocks were in HIGH expense ratios of 3.35% or less. Such a nightmare for me. For example, with an expense ratio of 3.35%, it means that I’ll pay $335/year for every $10,000 invested in that fund. So you can see how that can really add up in cost.

Those are my big goals this year, what are yours?