Time to share how I’m doing on the savings side of personal finance, specifically my retirement accounts. I last shared an update back in January based on the account balances that I had at the end of December. With my student loans finally being paid off, saving has now become my personal finance priority. Taking advantage of retirement accounts and the tax savings that they have to offer is an important part in meeting those savings goals. I’m hoping that by trying to max these accounts out it will bring me closer to my goal of financial independence. This snapshot should hopefully give a better picture of that!
As 2015 has finally drawn to a close, it’s time for another retirement accounts update. This is the opposite of my student loans update where you actually get to watch my net worth grow! I enjoy writing these posts as it’s a change of pace looking at the positive side of personal finance. Obviously both sides have the same effect, but there’s something that is more satisfying to me about this part. I gave you my last update back in May when the market continued to make gains, but the rest of 2015 and the beginning of 2016 has seen a much rockier landscape. The S&P 500 saw its worst start to the new year since 2001 and my investment returns are anything but positive over the course of the year.
It’s the time of the year where I provide you with an update on how my retirement accounts are doing. So far I’ve just kept this post to twice a year updates, but I think I’ll eventually convert it to a monthly net worth progress once my student loans have been paid off. The last update I did leave you off with was at the end of 2014 which had me around $31,000 stashed away in my retirement accounts. The market looked like it might have been peaking recently, but it seems that was only a momentary pause for now. The S&P 500 has remained relatively flat the past few months, only dipping up and down. Overall in 2015 we’ve seen gains and I think my portfolio reflects that. For the time being, most market fluctuations will be outweighed by my contributions though.
The year is coming to a close, and it’s a good time to review and check out how my retirement accounts have been doing these past six months. The last update I gave was in the middle of 2014 and these accounts are also a big part of why I finally hit a positive net worth. I continue to make my student loans a priority because of their interest rates, but living at home has also enabled to me contribute a sizable chunk of change to my retirement accounts as well. The S&P 500 has been relatively stable since May when we look at then compared to now, so I don’t expect huge gains from the stock market. My contributions have been continuing though, so there is always progress!
I last updated you on my retirement accounts and their balances at end of 2013 so I figured with it now being almost the middle of the year, this would be the perfect time to update you on the progress I had made since then. I’m hoping that when all my debt is finally paid off and I have a sizable amount saved up this can be become a monthly occurrence, but for now I will stick to these twice a year updates. There’s really not that much movement with these accounts, as this is mostly a set it and forget method of investing in index funds. There’s no point in panicking over the ebbs and flows of the market when this is most likely a 20-30 year journey of hopefully riding the curve to a higher point than I started at. Continue reading