October is done and we added $2,600 to the savings target which stands at $6,300. Hey, only $12,200 from the $16,500 goal she says with a mix of sigh and laughter. We should easily reach $10,000, so considering July started us in negative digits, I shouldn't despair too much. We've decided we need to keep fully feeding the Roth as opposed to college fund. There's a probability she'll go to a state college and as long as we have a years worth in cash, we should be able to cash flow the costs. Last resort would be student loans. There may or may not be any education credits by then so not counting on the tax refunds we got with other two, but we both do a hefty tax deferred savings which will greatly lower taxes now that we both can put $24,000 aside. I'll do a final update in January to this challenge with new targets, maybe in a different format.
I've been thinking a lot about net worth. Not counting the house, the retirement calculators say we should be more than fine in ten years assuming we keep at our current actions of maxing Roth and 401K. We need more liquid savings though and that will be part of the 2017 goal setting, aiming for a three year cash savings to bridge between DH' s retirement year target and age 67. I want to draw done as little as possible to keep the tax burden low. The Roth won't be taxed as it was funded with after tax money but the 401K's, my pension, and my work sponsored health savings plan will be. My brain gets fuddled thinking all this, but it's necessary.
Any feedback on my savings goals? Would anyone do things differently in my shoes? What's your biggest financial worry and how are you trying to handle it?