Thursday, January 21, 2021

Stay the Course

What is the course? Where do I want to be compared to where I am now? Where am I now? Where do I want to be at retirement? What do I want my life to look like? 

Setting forth on the path is small steps. Movement forward and backwards and serpentine and straight. Choosing a direction and going with it. 


I think it is most difficult for me to imagine life as I would like it to be. What do I want in five years, seven years, twenty years...The idea of living in the present but preparing for the future. Seeking the balance to enjoy both. 


House: There is a desire to build a self sustaining garage apartment behind the house. Rent the house or the apartment. Is it worth the $40,000+/- investment in the property? Take out the existing garage and storage shed. Build out a garden and outdoor space. Fence between the neighbors. The house is in decent shape. It will need a new roof, new siding, and new AC unit in the next decade. 


Vehicle: The Tacoma has 260,000 miles on it and it is running well. How many more years? I put away $500 a month for a new car into a mutual fund. The subaru crosstrek or outback is top of the list or a new small truck. Being able to haul a trailer seems important. Think a fifth wheel Scamp would be my choice on a nice pull behind for camping.


Trips and vacations: I would really like to be able to go somewhere for three months at a time. Immerse into a place. The thought of living somewhere else is tempting but I do not want to be tied to a place I think.  I put $200 a month into a travel fund. I also deposit any oil royalty checks into the travel account. Annual trip to South Dakota with $200 going into an account for that purpose.


The studio: It is working. It is a lot of work. In seven years is it still going to be something I want to do on a daily basis. Can I find someone to be there full time? What is the cost/benefit ratio? It is not a money making proposition, in that we spend nearly everything we make. I save to purchase large items. I would have to find a way to make enough money each year to cover my expenses and the salary of someone else. The studio does cover a few personal monthly expenses; gas and electricity for the house and gas/repairs for the truck.


Accounts: There are studio and personal accounts.

Accounts

Balance Jan 2020

Citizens Personal Checking

$978.19

Citizens Personal Savings

$2,503.54

Citizens Truck Fund

$2,004.13

Citizen House Fund

$2,392.24

RCB Personal Checking

$1,439.88

Wells Fargo Checking (South Dakota)

$3,995.59

Wells Fargo Savings (South Dakota)

$1,476.29

HSBC Vacation Account

$5,435.63


Studio

Citizens BSS Checking

$7,820.64

Citizens BSS Savings

$10,177.15

RCB BSS

$18,825.15

RCB BSS Savings

$17,354.04



Investing: Besides retirement accounts there is a mutual fund for saving for a new vehicle. 


Vanguard VFIAX 

$500 per month for Auto

$55,185.38



Retirement: With a fairly shallow investment pool I should be okay for a bit. Between teacher retirement (2027) and Social Security (2032?) and Safe Withdrawal things should be okay if everything goes well. 


Vanguard Roth IRA

$7000 per year

$97,513.53

Vanguard SIMPLE IRA through BSS

$824 per month

$87,457.40

Vanguard 403b

No deposits possible

$138,415.12


Income: Paycheck from school ($46931.92), three oil royalty checks (into Travel Account), studio pay goes into SIMPLE IRA account ($824/month). 



Expenses: Personal expenses and studio expenses. I spend a lot on dining as I eat out nearly every meal. There was a small remodel on the house with painting, new floors and plumbing work.


BSS Expenses 

2020


Personal Expenses 

2020

Art Festivals

$350.00




Bank Fee

$163.98


Bank Fees

40.53

Batch

$6,659.24


Cash

60

Cash

$120.00


clothing

1159.21

Color

$6,382.10


cpa

325

Consumable

$14,910.32


dentist

580

Dining

$84.61


Dining

13595.71

Donations

$102.20


entertainment

19.01

Gallery Fees

$300.00


gas

294.96

Gas

$849.18


Gift

1496.36

Gift

$510.93


Groceries

3131.17

H2O

$286.11


HBE

2394.67

Insurance

$2,237.32


House

13554.47

Internet Services (Google)

$288.00


Insurance

4459.64

Internet (phone)

$2,271.47


Memberships

30

Memberships

$303.63


Mobile Phone

1101

OGE

$11,555.85


Security

588.32

ONG

$3,243.60


Shipping AE

343.65

RJ - Contract

$10,950.00


taxes

1528.23

Refund

$320.00


therapy

1157

Rent

$10,200.00


Transfers - HHB

1840

Retirement

$9,888.00


Travel

88.94

RB sales

$120.00


truck

237.61

RM - Contract

$19,200.00


Utilities

898.06

Shipping

$172.12



48923.54

Storage RV (Sold)

$425.84




taxes

$11,481.27




Taxes - CPA

$1,150.00




Transfer HSBC

$1,200.00




Travel

$76.26




Truck

$358.92





$116,160.95






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