I’ve been pondering this a lot lately.
I’m not talking about pie in the sky scenarios like lottery winnings or a rich relative’s death. I’m talking more about what you could see yourself feasibly achieving in the next, say, five years.
For example, I’ve already (mentally) named 2016, the year of the retirement funds.
We’re woefully underfunding the Roth IRA. Next year, I want to open a SEP and fully fund it. I know, I dream big.
But that’s next year. What about long-term? Here’s what I’ve got:
- We can fully fund both a SEP and Tim’s Roth
- We have $20,000 in savings
- We’ve paid off our house
- We have a rental property
- We can afford to get Tim a Challenger — because pretty.
I honestly have no idea how long that will take.The combined retirement funds will be $18,000 on their own, which will slow down other goals.I’m hoping we could finish off our $75,000 mortgage within a decade. But if retirement takes precedence (and it does)… That will hurt our progress.We’ll start saving for a rental property once our house is paid off. So it’ll probably be at least 15 years before we’re ready to buy again.
We have a car fund, so that will just have to accumulate over time. that’s done.
Savings will just have to grow (and shrink and then grow again) over time.
I guess the good news is that my ideal is entirely achievable. I’m just not sure how long it will take. But it’s good to have goals in mind, right?
Do you know what your ideal finances look like? Is it feasible? How long do you think it’ll take to get there?