I turned and thought she was sitting on Hubby's desk
She's not. She is on the arm of the love seat we have always called dog seat because every single dog we have had since 2002 has claimed this seat.
Our IRA guy gave us a heads up we needed to come in during Dec to decide what we were pulling from IRA's next year and that our investments are where we want them.
We want to have a pleasant retirement not one of fraught with we are going without. We had set our goal to live mostly on our social security (after Daddy lost most of his IRA in 2008 and had to drastically change his life style to rebuild his retirement). Social security is meant only to replace 40% of your income. Something to keep in mind before you go on social security. We are only over budget by $2000... that is the mortgage (not including ins and property taxes) and the truck payment.
Mine is set, I am happy with the investment and the amount I am pulling from my inherited IRA.
BUT we agreed Hubby's pull is too high for where we are now and he is not sure about a couple of his investments as he changed who was handling his IRA a couple months ago.
So I pulled up the budget with added inflation. Hey things are not going to go down a lot so might as well budget for it. I added 15 % over the 10% I just added a couple months ago. IF they don't go up that much , the money goes to savings.
STILL ... do not need what he has been pulling. I had even moved his truck payment into the household budget in case the business can't make the payment. That might end up being for the replacement of the family truck that the frame is rusting out of.
I asked him for the financial priorities...
He rattled off a half of dozen...and then off and on would add something.
I changed the wording and asked for the essential.
Definitely changed how he was thinking and what he wanted to focus on.
1. To be able to live in our home instead of assistant living/nursing home.
What is needed right now? Decluttering and organization. We just need to refigure what we have for organization which probably would clear half the barn and what the need is.
We don't need to drop pedestal sink in wheelchair bathroom or drop the sink in the mudroom. We don't need a wall oven or cook top at this point. All of that would be needed later. We have options on how to access the basement where the pantry is.
2. Having a better savings including 2023 medical out of pocket and some towards 2024 medical out of pocket. I have half of 2023 already.
I already have listed what we need to save for and the amounts needed/wanted. He did acknowledge that he hasn't been clearing it with me before buying stuff.( I brought up usage of his credit card) When he went to an auction last week I had gave him a list with price point. Said that helped so I made another list of what is on the to buy list and those price points to carry with him. SO if he does see something on the list and the price is matching or better lower, he knows he can buy it.
The budget for electric is $200/month. If it's lower the extra goes to savings. If it's higher then it can be pulled from saving of when it was lower.
I think every 3 months I will transfer from the lower interest rate savings to the higher interest rate savings. It's 3-5 days to get the transfer completely through.
3. Pay off the mortgage before we are 93.
I already have got that down to age 88. BUT he wasn't acknowledging you have to cut somewhere else or pull more $$ to do that. He is now.
4. Finish getting stuff for the grid that included 2 new blades for the buzz saw.
The saw blades for buzz saw is already in savings as they are ordered and come in during Jan. I transferred what I didn't spend on propane over to it figuring it would be in the heating budget instead of propane budget to cover both.
I have 1/5th of what is needed already in saving. I just need to keep us focused on ESSENTIAL instead of priorities that sends us off the track somewhat.
5. Cut what isn't essential to cut what he is pulling from IRA.
He started pulling his IRA in 2017...It's been reduced every year. This year was 50% LESS than that original pull. Every year we have cut it by 10%. His old financial guy was shocked as most increase the pull or stay the same.
Hubby agreed to reduce what he is pulling by 32% for next year's pull from this year's amount. Little scary to drop that low that fast but we have definitely turn what we need to run the home and get the essentials done to a lot lower amount.
Prayers for peace