After setting my Short-Term Goal for this month, I am now setting my Mid-Term Goal. As I have mentioned, I plan to buy a house in an area with insane real estate prices for the long term for family reasons. As we are planning to move in mid-2007, that is the target date. $100,000 in non-retirement accounts will be enough for a good-sized downpayment, as well as other incidental costs.
Let’s check on the current status – If I contribute $14,000 to my wife and I’s Roth IRA in January for 2004/2005, my net worth will look like:
Thus, I am 23% to my goal, with 2.5 years remaining. That means my required savings and earnings pace will have to amount to $2555/month. That’s going to be tough, the stock and bond markets will hopefully help me out. If I assume a certain earnings rate, then my monthly savings amount may be more reasonable. I will have to consult my economics-trained friends! My other option is to put less into retirement.