2011 Accomplishments and 2012 Goals

Financially, 2011 was a great year for our household.  After a good year of savings in 2010, we saved even more in 2011.   We maxed out our 403b and 457 accounts for a total of $66,000.  We also added $5,000 to my wife's traditional IRA.  The final step to our banner year will come next week when I add $5,000 to a Roth IRA.   Fortunately for us, we were able to hammer our 403b, 457 and IRA accounts to the amount of $76,000.  At the same time, we also accrued $6,892 in our 403b pension plans.  The grand total:  $82,892!

Here are our retirement contributions for 2011:

Retirement Accounts	Self	Wife	Total
457 at ECS	$16,500	$16,500	$33,000
403b at ECS	$16,500	$16,500	$33,000
Roth IRA & Traditional IRA	$5,000	$5,000	$10,000
403b pension at ECS	$3,717	$3,175	$6,892
Total 2011 Retirement Savings	$41,717	$41,175	$82,892

In 2011 we also continued to fund various educational accounts for our son and our nephews and nieces.  Here are the totals for 2011: 

Educational Accounts	Son	Nieces & Nephews	Total
Coverdale ESA	$2,000	$0	$2,000
GA 529	$300	$300	$600
Total 2011 Educational Savings	$2,300	$300	$2,600

Here is the grand total of all our savings for 2011:

Accounts	2011 Totals
2011 Retirement Savings	$82,892
2011 Educational Savings	$2,600
Total 2011 Savings	$85,492

Our financial goals for 2012 are pretty simple:  

1. We will continue to fully fund our retirement and educational accounts.
2. Since we will be enrolled in a high-deductible health plan in 2012, we will contribute $6,250 to our Health Savings Account.  In November we established a HSA at Alliant Credit Union.  We went with Alliant because their fee structure was transparent and their overall fees were low.    

Next December I hope to write a post confirming that we saved more than $90,000 in 2012!

How We Saved over $85,000 in 12 Months on 2 Teaching Salaries…in a Down Economy…without Breaking the Law!

After a good year of savings in 2009, we saved even more in 2010.  All along we hoped to be able to fully fund our 403b and 457 accounts to their maximum contribution levels allowed in 2010.  Fortunately for us, we were able to hammer our 403b, 457 and IRA accounts to the amount of $76,000.  At the same time, we also accrued $6,418 in our 403b pension plans.  The grand total:  $82,418!

Here are our retirement contributions for 2010:

Retirement Accounts	Self	Wife	Total
457 at ECS	$16,500	$16,500	$33,000
403b at ECS	$16,500	$16,500	$33,000
Traditional IRA	$5,000	$5,000	$10,000
403b pension at ECS	$3,314	$3,104	$6,418
Total 2010 Retirement Savings	$41,314	$41,104	$82,418

In 2010 we also continued to fund various educational accounts for our son and our nephews and nieces.  Here are the totals for 2010: 

Educational Accounts	Son	Nieces & Nephews	Total
Coverdale ESA	$2,000	$0	$2,000
GA 529	$300	$300	$600
Total 2010 Educational Savings	$2,300	$300	$2,600

Here is the grand total of all our savings for 2010:

Accounts	2009 Totals
2009 Retirement Savings	$82,418
2009 Educational Savings	$2,600
Total 2010 Savings	$85,018

How We Saved over $64,000 in 12 Months on 2 Teaching Salaries…in a Down Economy…without Breaking the Law!

In May of 2009, my wife and I had a tough career decision to make.  Because we both felt that we needed a change of scenery, we decided that we could either take a year off from teaching or seek a new job in another school district.  Taking a year off would have required us to spend down our savings and tap our HELOC and 457 accounts.  Instead of spending our hard-earned assets or borrowing against our home, we decided to take a teaching job in Echols County, Georgia.  Like my previous employer Troup County Schools, the Echols County School System offered both 403b and 457 retirement accounts.  These accounts, along with our traditional IRA accounts at Vanguard, are our primary retirement savings accounts.  An added benefit of working at ECS is that the district has its own 403a retirement plan; it is funded by a 5.24% employer contribution.  Here are the amounts that we saved over the course of 2009: 

Retirement Accounts	Self	Wife	Total
457 at TCSS	$14,360	$14,796	$29,158
403b at TCSS	$3,156	$0	$3,156
457 at ECS	$2,140	$1,704	$3,844
403b at ECS	$6,922	$6,922	$13,844
Traditional IRA	$5,000	$5,000	$10,000
403b pension at ECS	$1,105	$1,035	$2,135
Total 2009 Retirement Savings	$32,683	$29,457	$62,135

            In addition to our retirement savings, we also fund a Coverdale ESA for our son.  We have fully funded this account since he was born in 2006.  We also fund our son’s GA 529 plan to the tune of $300 a year.  Finally, we have six nephews and nieces who get $25 contributions at Christmas and on their birthdays; these results in $600 of contributions a year.  Here is breakdown of our educational savings accounts:   

Educational Accounts	Son	Nephews & Nieces	Total
Coverdale ESA	$2,000	$0	$2,000
GA 529	$300	$300	$600
Total 2009 Educational Savings	$2,300	$300	$2,600

           

            In spite of working in what many consider to be a low-paying field, we manage to do quite well working as teachers.  Here is the grand total for 2009:

Accounts	2009 Totals
2009 Retirement Savings	$62,135
2009 Educational Savings	$2,600
Total 2009 Savings	$64,735