2022 Financial Planning

Hey numbers nerds, it’s that time again.

Current goals:

  1. Max out 401k for myself and my wife
  2. Max out HSA
  3. Add $25k to brokerage
  4. My wife contributes $6k to our son’s 529
  5. Add another $1k-$2k of crypto, I just throw a hundred bucks at a time at this here and there
  6. Pay an extra $4k on the mortgage
  7. Increase charitable giving by $1k

The biggest challenge here is I want to build a large, covered porch next summer, and that’s going to be pretty expensive. #6 may go out the window to help with that, and I may dial brokerage down as needed once I see the price tag. We do have a tailwind though, our travel budget is likely to stay low due to a) COVID and b) about 800,000 points/miles I’ve accrued over the past few years. So maybe cash flow + stealing from the travel budget + not paying extra on the mortgage will get us there. My bar napkin math says a porch will be in the $35k to $40k range.

I am the same as Mathman except 4 & 5.

But I heard that Mathman is full of shit.


Or was it that he knows his shit . . .

A little from column A, a little from column B.

  1. Max out one 401k and start bumping the other from around $8/year to ~$12k/year.
  2. Add $11,700 to taxable brokerage.​
  3. Add a small amount to HSA (in 2023 I’ll push things around and max that instead of IRA/401k).
  4. Pay $12,000 over minimum on the mortgage (aiming for 11 years or less on the total duration)
  5. Max out at least 1 Roth IRA
  6. Major vacation far away for ~2 weeks if COVID numbers improve, otherwise save up more for it and throw remainder into the second 401k.
  1. Max out 401k, including the $6500 catch-up for old farts like me
  2. Be able to save $1000 per month into post tax brokerage accounts
  3. Continue to pay for college expenses out of income and not dipping into savings. This will include a graduation present for kid #2.
  4. Try to make wise spending choices, and not do anything dumb like pre-paying extra on my mortgage.
  5. Put any annual bonus into brokerage account without spending a penny of it

I’m not HSA eligible. Crypto is not appealing. I have a budgeted amount for charitable giving, and I will hit that. I assume the covid-19 situation will keep the possibility of leisure travel rather unlikely, so there’s no planned expenditure there. This year I had some car repair & maintenance expenses that I hadn’t prepared for, but with an old vehicle that’s not truly unexpected. I’d like to investigate options for reducing my monthly expenses on phone, cable tv, streaming service and internet because 400+ per month seems staggering. All my other regular spending is under control because I am a Grade A+ budget maker and follower, even by actuarial standards.

No plans, except to spend to:
(Edit, to put in order of priority):

  1. Resurface the pool;
  2. new sliding patio door, with blinds inside the glass (issue: current space is larger than the size of sliding doors with blinds);
  3. new heater for pool (I miss my hot tub);
  4. clear the underground drains from the back to the street (might require digging);
  5. get a new cover for patio;
  6. new floors (getting rid of ceramic tiles and carpeting downstairs, maybe the stairs);
  7. painting indoors;
  8. getting rid of popcorn ceilings;

Yes. That’s quite a list you’ve got, so it’ll probably dictate a huge chunk of your 2022 finances!

Now I feel lazy for ‘just’ planning to do a master bath expansion/remodel and a porch.

Well, we already have the porch, but the lattice cover is probably the original from 30-40 years ago, and I haven’t done anything to keep it up for the last 20 years or so. I want something that I can keep ignoring, and I want it to be a full cover, not a lattice, but that means making sure the rain, when it comes and it comes in torrents, will drain off properly. One of our drains does not drain fast enough, and the overflow goes into the pool, which is bad. And, I’ll want some tie-down “walls” so it can be warmed by a space heater, perhaps for people to watch the Super Bowl.
Just a lot of big things adding up to a clusterfuck.

I once set out to replace a kitchen sink drain that had rusted out. But once I got under there, I decided to re-pipe it because it wasn’t done properly. And then decided to replace the disposal because it was crap. By Sunday night I had a new cast iron sink, a new faucet, and all new plumbing. Cost me like $700 to replace a sink drain, but I guarantee it’s still in that house and working properly.

So I get where you’re going.

I never have set amounts, I just put my $$ into HSA, 401k, IRA, Taxable, Crypto. If I need to spend money on stuff I spend it. Whatever I don’t spend goes into that. By spend I include travel, charity, gifts, mortgage, etc.

Just bought a condo so budget’s gonna be tight again. Unless my portfolio takes off.

I heard NIO took off today.

If by took off you mean still down like 20% then yeah…it took off lol

1 Like

‘Only’ down 20% now, gotta be an optimist!!!

  1. Defer 15% of my income and 100% of my bonus so it can be paid out over 7 years when I retire in my mid-50’s and so I can stay in the 12% tax bracket.
  2. Max out 401k ($27,000)
  3. Max out HSA ($7,300)
  4. Take delivery of 2022 Honda Civic ordered in August, Sell 2017 car. (-$8,000)

I appreciate the planned spending being part of the goals. provides the expenditure so me kind of priority, as in you def want it to happen.

I have to get a car. daughter gets her license and so it will happen (she gets the trickle down 2008 but serviceable car). but really, I intend to just spend it all if it wasn’t listed as saved.

Oh, I need to figure out stock options. My company is private but the expectation is to IPO in 18-24 months. I have options on 15k shares @$3 per. Current fair market value is $12, so if I exercise now it’s $9/share of income. But we will be re-calculating fair market value in January and it’s gonna go up.

On one hand, if I exercise now and things go well, I pay less taxes at the current market value vs the future market value. We had our last round of funding about a year ago and the valuation was about $38/share.

But, there is risk. If I exercise and the company goes belly-up, I lose it all. If we IPO but the valuation is low, I might lose the tax game by paying taxes now.

I have total flexibility in exercising options. I can literally exercise 1 share today, 4 more tomorrow, and 18 next Wednesday if I’m so inclined. I think I’m going to sell some equities in my brokerage and exercise something like 5k shares in January, right before we re-calc FMV. And then next January, if it really looks like IPO is imminent and I think the valuation is holding, exercise the rest. What say you, GoA??? Should I YOLO this and just grab all 15k in three weeks??? I already know what @John.S.Mill will tell me to do.

I don’t mess with options man

I’d be exercising options, so buying shares in a company that could be a pretty volatile play. I thought someone holding a ton of NIO would appreciate this investment.

And I see our revenue/profit numbers on a weekly basis. The company is solid, running in the black now and YoY revenue growth is in the 35-40% range.