Q2 2021 Plan Update

This was an eventful quarter. It kicked off with tapping our birch trees and making birch syrup. Then, we dealt with the last month of remote school for the kiddos followed by a visit from my parents and then Mr. T’s parents (after not seeing either for over a year and neither had seen our new house). We went on a glacier cruise. Here’s proof we saw a glacier calving (followed by a collective reaction from the whole boat and Florin yelling: “Yes! That was AWESOME!” a few times.):

Then we sold our condo to our renters and submitted our plans to the city for our home addition. I also chaperoned our oldest (who was fully vaccinated!) at a church camp adventure with 20 teenage girls that involved rafting, hiking, camping, etc. And then had eight coworkers come to visit. After a year of only being social with our one pod family, this quarter was both thrilling and totally exhausting.

Work is still tenuous, to put it mildly:

Since then, several others were let go and I’m now on my fourth manager in a year. I really don’t know what happens from here, but things aren’t terrible yet, so I’m holding out until they are (or until I get let go as well).

I also got my official ADHD diagnosis yesterday. I feel like I should throw a party or set up a gift registry or something. Momentous I guess.

Selling the Condo

It turns out that buying a house in February of 2020, renting it for a year, and then selling it to the renters was one of the smartest, luckiest financial decisions we’ve made. Zillow says our house has appreciated nearly 75k since purchasing a year ago, we sold the condo for top dollar, and we didn’t have to deal with listing it, etc. It was fabulous.

So what did we do with the money?

• $25k went to a mortgage recast – We chose a recast because it will lower our required monthly payment when we quit our jobs. For now, we’ll still pay the current amount and likely recast again before quitting if we don’t pay it off so we have maximum monthly payment flexibility. This recast brought our balance down to $289,000 (below 300k!) and got rid of our $27/month PMI.
• $6k went to maxing out my Roth IRA for 2021 (yay for knocking out two goals!)
• $65k went to a joint brokerage account – maybe we’re behind on this whole FIRE thing, but we finally managed to open a brokerage account and put 65k in.
• The rest is being set aside for our home addition. When the addition is done, we’ll assess what, if any, money is left over and figure out how to distribute it.

The market appears to still be on a tear. Wild, right? Between the market’s wild climbs and the condo selling, our investments are looking pretty darn good! We’re currently sitting at $639,000 in investments. Again: WILD, RIGHT?! We jumped over $100k in a quarter and skipped right over the $500ks in our blog quarterly investment tracking! And, as mentioned previously, our mortgage is now down to $289,000.

2021 Goals

We made these goals before we knew we were selling the condo. That certainly helped fund most of what we have listed here. But the addition is still the big unknown. We’ll hold off on making any new goals or doing anything big with money until that is paid for. Lumber fluctuations make it really hard to pin down a price for what we need done.

• Have the Addition Exterior Finished – We are planning to do all the interior work ourselves (except MAYBE drywall. TBD). But we need to have the addition “dry in” by winter. We have a contractor lined up pending plan approval by the city. If that takes too long, we’ll have to wait until next summer. But we’d really like to have the exterior done this year so we can spend the winter working on the interior.
• Max Out My 401k ($10,077/$19,500) – I doubled my contributions this quarter and am on track for maxing out. But still have to make sure it doesn’t happen too early or I’ll miss out on my employer matching.
• Max Out Mr. T’s 401k ($9,576/$19,500) – Mr. T’s retirement contribution “slider” may be the death of me. I can slide it to “$732,” “$798” or “$819″ per paycheck, but not $750.” We were under by $600 in 2020 because of the dumb slider. I’m hoping to get closer to maxing out this year, but I’m doubting we’ll actually be able to get the exact $19,500. My company doesn’t let you overcontribute, but I’m not sure about Mr. T’s. I’m afraid to try.
• Max Out my Roth IRA for 2021 ($6000/$6000) – Done. Probably the earliest I’ve ever done so!
• Max Out Mr. T’s Roth IRA for 2021 ($6000/$6000) – Done. Seriously nailing these goals (thanks to the unexpected condo sale!)
• Max out a SEP-IRA – My current plan is to save all our self-employment income in our business account without using any of it. This will mean we can max out our SEP-IRA and then put the other funds into the new brokerage account, but we’ll wait until the addition is done… we may need to use the funds we get from our t-shirts/coloring books business for the addition.

That’s a wrap from me for the quarter. We have loads of summer plans ahead of us and a (fingers crossed) fairly normal fall with kids back in school. Watching the Delta variant closely and hoping Pfizer is on time with their September approval for 5-11-year-olds with vaccinations! I hope you all have a lovely summer moving at the pace you want to as we figure out what the new normal is.