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Year to Date

December 1st, 2017 at 10:21 am

My debts have stayed fairly steady--the usual beginning of the year decrease when I take some extra money (required annual distribution from an inherited IRA) and use it to reduce the debt, followed by an increase over the year as extra bills mount--things outside the ordinary budget I can't really afford at my current salary but feel are worth the expense (paying for my CFP coursework, long-term care insurance, some household improvement stuff) so that by the end of the year, the debt ends up back where it had been around the beginning of the year. It's just that less of it is in the mortgage and more in the form of other types of low-interest debt. Fingers crossed that this coming January I can reduce the debt below what I have been able to do in past Januaries so that next year is a permanent reduction. Depends largely on what happens with year-end bonuses. If the firm I work at meets its revenue target and pays a bonus this year, that could mean a larger inflow this January than previously (I've never, ever, worked at a place that paid bonuses before, but this firm does, but not every year, and they can be a decent size) and a permanent reduction in debt. That is my goal, but obviously not something I control.

Fortunately, the increase in assets more than compensates for the fact that the liabilities are flat YTD--over a 40K increase in my accounts as well as an 8% increase in my estimated home value, for a net worth increase YTD of over 50K.

Of course I, like everyone else, am waiting for the other shoe to drop on these high markets. My boss (who routinely ends up on the Barron's list of top 100 financial advisors) thinks that, while there will undoubtedly be a correction at some point, the markets are not unreasonably overvalued, so that while we may see a 10-15% dip lasting for a month or two, he is not expecting a long-term bear market.

Of course, with all the crazy on the political scene, who knows what will ultimately happen. I was following all the politics avidly early in the year and it was just too much. So now I focus locally--there's an active group in my neighborhood, the Mount Airy Neighborhood Association, and I go to their meetings when I can. Think globally, act locally and all that.

2 Responses to “Year to Date”

  1. Amber Says:

    Got my fingers crossed for the bonus so that your January debt payment month is good one.
    As far as politics I had to stop watching, not pleased at all

  2. Dido Says:

    Thanks Amber!

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