Goal Achieved: SweetSpotFI
I went back over finances, as you do, and realized that I made a mistake. Back in June, I said that we had made it to BallerFi per the Guac Scale. That means that you have at least $100K invested. This was cool and awesome and not at all accurate.
You see, we only use these accounts (index funds, employee stock, & IULs) since they are the only ones we have without age restrictions. However, I forgot that the IRA, unlike normal IRAs, that Mr. FOGA inherited has no age restrictions. It actually requires him to pull out all the funds before 10 years from his father’s death since he is a designated beneficiary. Beneficiary IRAs are wild.
So, with that, we are actually SweetSpotFi, which is when you have over $325k invested.
And that’s the update. Same numbers I was using then as well. I only look at new worth four times a year cause why would I mentally torture myself all year? 😂
Next stop is BeachFI. 🌴
Feature Photo by Jani-Petteri Tammi on Unsplash
Ah I think that’s another homework assignment for me: figure out what the rules are in the various scenarios (one of us adults passing, both of us passing, at which ages/stages) and lay out the steps for the heirs. I don’t have the IRA rules down pat and I can’t imagine any of us being more clearheaded if it comes down to that situation anytime soon.
Yeah, it is a lot. If you are a spouse of the person who passed, then the rules are entirely different. Mr. FOGA was a non-minor child, so it was REALLY simple. “Here’s your new account. No tax penalty, but it will be income. Also, you have 10 years to pull it all out.” I keep saying I need to meet with a lawyer for a will and I have not done it yet. 🤦♀️
Funny what you find when you take another look at the numbers sometimes. I recently took a closer look at my Total net worth calculations and found a mistake in the pre-September ’19 numbers. I accidently counted home equity AND the amount remaining on our mortgage. oops.
Congrats on your milestone.
Thanks! I am sure if I started looking back I would probably lose my mind a bit with the errors.😅