So, I just opened a Fidelity Freedom 2045 Account, with the Simple Start, so that instead of having to have $2500 now, it's going to be funded with $200 per month of automatic transfers from my checking account. The $2500 number was the only thing holding me back, because I don't have that right now. Then I discovered the Simple Start. Lo and Behold, I am in business! I'm also going to switch gears a little…
• Put entire "extra paycheck" in IRA (January)
• Put an extra $200 per month in IRA, minimum. I still want to focus my efforts on my e-fund, but I'd like to have $2500 in this account before April 15th. If I put in my extra paycheck, and $400 per month (including auto transfer) I'll have 2887 by the end of March. Maybe I can get this up to a nice round 3000 with a few extra bucks thrown in here and there?
• If I'm lucky enough to get a Christmas bonus, I'm still going to put that in my emergency fund. I hate that my e-fund is so small. It's terrifying, actually.
PLUS!!! that will mean that I'll get a refund (according to the IRS calculator) (and that's without the hopeful deduction!). So assuming that it's pretty close to accurate, it really does pay to contribute to retirement! If I'm lucky enough to get a small refund, I'll put it in my emergency fund. I've got to build that up, especially in light of the oh so lovely economy.
My goal in 2009 is to fully fund the IRA, like a responsible adult. If I can contribute 416 a month I can do it. My 401k is a profit sharing plan, with no employer match. I have no idea what to expect for my profit sharing portion this year, so we shall see. I'd like to increase my contribution to this by $50 per paycheck, in the new year, but I'll have to crunch the numbers.
I feel like a responsible grown up now, and that pleases me. Now my boyfriend and I are going to put up our Christmas tree!