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Posts tagged with: college savings

Year Of Becoming An Adult: Final Status

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Back in October 2014 I wrote about wanting to use 2015 to really “become adults.” To me, this meant taking care of some much needed issues that were in addition to my 2015 financial goals. I wrote a few posts throughout the year with updates (January update, March update, September update, October update), so this will be my final update of the series.

  1. Wills. Wills were actually drawn up at the beginning of 2015, but it took us awhile to actually get them notarized. This task was completed by mid-year. Final status = Complete
  2. Life Insurance For Hubs. We had intended to start working on this mid-year, but didn’t actually get around to applying until October. In November hubs completed all the bloodwork and in early December he was asked to supply some additional information (all stemming back to his mysterious illness at the end of 2013 where our medical bills are from). He finished everything on his end but we’re still waiting to hear back from the company. When I first applied for health insurance it took about 3 months to all be processed so I’m thinking this is normal (and not something directly related to his mystery illness). If he doesn’t hear back sometime in the next couple weeks we’ll check back with them but I’ve got my fingers crossed everything is in order and our next interaction will be mailing off a check to actually finish the process. Final status = Well underway, but waiting to hear back from insurance company
  3. Open Retirement Accounts. We opened up a Roth IRA in April 2015 and a 401(a) through my work in July 2015. I fund 10% of my pay to the 401, and we’ve saved a little extra here and there for the Roth (but a truly minimal amount…something I’d like to increase in 2016). Final status = Complete
  4. Open College Savings For The Kids. We opened up one 529 for each child in October 2015 and we’ve been funding them with $25/month each ($50/month total). Not a lot, but every little bit helps! Final status = Complete

Overall, not too shabby. I wish we’d started the life insurance stuff a bit earlier in the year so it was all wrapped up and done by now, but at least it’s well underway and if it doesn’t work out it will be because we were denied (not due to our own lack of trying). But hubs’ health has been great and, especially with his weight loss, I’m really hoping everything goes through smoothly and he’s able to be insured. It will certainly give me great peace of mind.

How have you done on your financial (or other) goals in 2015? Do you have any new goals or resolutions set for 2016? I’d love to hear them!

 


The Year of Becoming an Adult: September Update

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In October of last year I wrote about some of the financial goals we have for the year 2015. I called it “The Year of Becoming an Adult” as a way to acknowledge that, at the ages of 31 and 32, we really should have had these tasks taken care of long ago! It was long past time and 2015 was our year to tackle these important adult milestones.

There were four things, specifically, that I had mentioned. Time for a little status update on each of them:

  1. First, we’re going to make a will. This is finally done! I actually made the wills on my birthday (December 31st), but it took us MONTHS to get them notarized! In our state we had to have two witnesses and we had a hard time getting people to be our witness. We asked bank employees (nope), we asked friends (yes, but had a hard time finding a time that worked for 2 separate friends at the same time), and finally we got it done when hubs’ mom and grandma came to visit a couple months ago. Kind of ridiculous that it required two people coming to visit us who could serve as our witnesses, but the bottom line is this task is finally completed and behind us.
  2. Second, husband will get life insurance. Quick recap for newer readers – hubs had a mystery illness at the end of 2013. In summer of 2014 I got life insurance and tried to get him some, but he was rejected due to the mystery illness (doctors never found out exactly what was wrong with him). He was advised to wait a year and try again. So initially we were going to reapply at the beginning of this summer. But hubs has been on a hard-core mission to lose weight and wanted to wait until his weight-loss is complete so he can try to get better prices on life insurance. He started his weight-loss mission on June 1st and in the 3 ½ months since then he’s lost a total of FIFTY POUNDS!!! Yes! It’s incredible! Like watching an episode of extreme weight loss in front of my eyes! He wants to lose another 20 lbs. but I think we’ll probably initiate the life insurance process early next month (October). I remember from last time around that it was a couple-month process – not a quick overnight thing like I had expected. So this should still be done by the end of the year, but hasn’t been handled yet.
  3. Third, we’re going to open retirement accounts. Success! In April (before tax day), we opened up our first Roth IRA for 2014. It was a meager contribution ($1,000), but it was a start. For most months this year we’ve been setting aside $100 to be added to the Roth. But then when I started my full-time job in mid-July things really kicked it up a gear. I’m now contributing 10% of my full-time job income to a retirement account, which is being matched up to 7% from my employer. In addition to that, I’ve opened up a FSA (flexible spending account) for dependent care. I contribute $500/paycheck of pre-tax money so I can pay for the girls’ care with pre-tax dollars. I actually haven’t made a withdrawal from the account yet (and I need to!), so I need to figure out how to do that. But the point is that we’re now contributing to various retirement accounts (mostly through my employer’s 401a but still a little in a Roth), as well as taking advantage of a tax-advantaged FSA.
  4. Finally, we’re going to open college savings accounts for our girls. This one still hasn’t happened yet. Starting in June (the month of their birth), we’ve been setting aside $25/month with the intention of opening up a college savings account. Honestly, I’ve been so overwhelmed with work and stuff happening with my Dad that I haven’t been able to investigate into this further. Matt made it sound like it was super easy-peasy when he opened up an account for his niece, so I just need to bite the bullet and do it. In the meantime, the money has been earmarked for this purpose (I categorize it using YNAB’s budgeting system), so it’s available when I finally do get around to actually opening an account. I’ll go ahead and put this on my To Do List for the beginning of October, too. So I’ll call this a half-success since we’ve actively started saving the money but haven’t actually funneled it into an appropriate account yet. The intention is there, so now it’s just a matter of the follow-through!

Those were the main things I had discussed in my original Year of Becoming an Adult post, but I’m also happy to announce that hubs is finally getting a handle on his dental issues, too (never mind that it took an all out emergency to make that happen). Actually, TODAY is the day he’s getting his first quadrant of work done! He’d gone to the dentist right after the emergency but had to be put on antibiotics before any actual work could be done so today is the D-Day (D as in Dental work). We’re hoping to knock out one other quadrant before the new year (to max out our dental insurance benefits), but that probably won’t be scheduled until late November or December sometime to allow us a couple months to try to save up some more money. Remember – this round of dental work cost $665. I’m not sure what the next quadrant will cost but I’m assuming it will be pretty comparable. Allowing for a couple months’ buffer to restock our dental savings account is really helpful for us.

So there you have it!

#1 = check!

#2 = in progress

#3 = check!

#4 = in progress

BONUS (dental work) = in progress

 

I’d love to report more successes/check-marks but with the cards life has dealt us this year I’m pleased with our progress. When life gets crazy, baby steps is all we can ask for. As long as we’re moving forward we’re moving in the right direction! : )

I’ll be sure to update in a few months when I can hopefully report that ALL of these items have been checked off the “Year of Becoming an Adult” list!