Tuesday, June 10, 2014

Retirement Accounts (Update) - June 2014


 
For several years now, our retirement accounts have been growing at a decent pace...this year, however, the performance has been pretty anemic! I am still thankful that we are not losing money. But that is why our family has now decided to switch our focus towards building our Dividend Stocks Portfolio and P2P Lending Accounts so as to have optional income streams in retirement. Nevertheless, we will still continue to track these accounts as they are still part of our retirement plan.
 

EXISTING RETIREMENT ACCOUNTS - JUNE UPDATE:

Below is a quick update to show the current values of our retirement accounts as of June 1, 2014.  For a more comprehensive list of values (beginning January 2014) and details of these accounts, please visit the Retirement Accounts page on our blog.

 

JUNE 2014

 
PENSION
Cash Value of Pension: $199,481 ($1,788 increase from May total of $197,693)
 

457K
Total value of 457K: $115,210 ($2,320 increase from May total of $112,890)
 

Roth IRAs
Total value of Roth IRA accounts: $51,346 ($967 increase from May total of  $50,379)
 
Overall, the month of May was a decent month as our retirement accounts increase $5,075 from the May 1, 2014 totals.  As it stands, the total amount of our retirement accounts is currently valued at: $366,037.
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14 comments:

  1. AndrewJune 11, 2014 at 12:44 PM

    You guys are doing well! I work in government too and have a pension, 457 and Roth. No matching in the 457 but great low cost choices (I choose mainly Vanguard, same with my Roth). The cash value of my pension is pretty low, I'm not sure the cash value has as much to do with the payout. The pension is a bit of a golden handcuff...don't want to leave the job cause I want to get pension.

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    1. A Frugal Family's JourneyJune 11, 2014 at 1:35 PM

      Andrew - From what I have heard and seen, Vanguard is a great low-cost option for a deferred compensation plan (457K). We have LFG and PERS as our options here where I work.

      Regarding the cash value, and payout, you are correct. The true value of the pension is much greater than the cash value. As you already know, our defined benefit plan is based on years of service, age, and pay. For example, if I stay until 55 years of age, I am expecting to receive roughly 86% of my pay (single highest year). Even with the potential growth from my existing cash value, I'm very likely to outlive my cash value but will still continue to receive checks until I past. This is part of the reason why pension reform movement has been so strong in the recent years.

      As for pensions being a golden handcuff...they absolutely are! Especially given the new formulas recently adopted by many city and state agencies. Mathematically, it generally never makes sense to jump ship. :) AFFJ

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  2. DivHutJune 14, 2014 at 2:05 AM

    So far so good. Nice gain on your account values also I think at this rate you are well on your way to reach your goal of $2k for annual dividends from your portfolio as one of your states 2014 goals. Keep reinvesting those dividends. Thanks for sharing.

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    1. A Frugal Family's JourneyJune 14, 2014 at 10:47 AM

      Thanks DivHut. I still feel like I'm a tad behind. Since I am in the process de-risking my portfolio, I may lose some of my projected dividends in the process. Hopefully, with my new purchases, I can offset any potential loss in dividends.

      Thanks for support. Cheers! AFFJ

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  3. RIch Uncle ELJune 16, 2014 at 12:38 PM

    Good job increasing the portfolio, eventhough it was all market based. It is still a good feeling to see it in the green. I hope to hit 5K in dividends this year, but it will all be reinvested back into the funds. I see it as a return is a return no matter what. Good luck.

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    1. A Frugal Family's JourneyJune 17, 2014 at 10:04 PM

      Thanks. I know this bull run won't last forever but I definitely enjoying it for now. Congrats in advance for reaching 5K in dividends. :) Keep re-investing and letting the compounding effect help push your sail! We just starting building our dividend stock portfolio about a year ago so we are probably a few years away from that accomplishment.

      Thanks for stopping by. AFFJ

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  4. Evan @ My Journey to MillionsJune 17, 2014 at 8:05 PM

    Jealous of your pension! I calculate retirement runs for clients pretty often and it is AMAZING what even a little income will do to a portfolio since there is less pressure on it.

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    1. A Frugal Family's JourneyJune 17, 2014 at 10:09 PM

      Believe me Evan, I do understand my pension value. :) But the reality is that my pension is also my golden handcuff. :( Nevertheless, it is definitely a problem that I feel blessed to have. I know the days of pensions like mine are over and that I am the last of a dying breed.

      Thanks for stopping by. AFFJ

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  5. FI FighterJune 17, 2014 at 8:18 PM

    Awesome job building up the portfolio and that's quite a nice increase for this month! I'm kinda starting to like this bull market run ;)

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    1. A Frugal Family's JourneyJune 17, 2014 at 10:12 PM

      FI Fighter - Yes, I'm certainly not complaining but I do wish for small corrections here and there to allow for more buying opportunities. :)

      To the bull run and to growing your net worth! AFFJ

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  6. UnknownJune 21, 2014 at 8:59 AM

    Great numbers. I really need to start harnessing the power of dividends.

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    1. A Frugal Family's JourneyJune 22, 2014 at 9:38 PM

      Thanks...I do agree that you should consider looking into dividend stock investing but I do want to clarify that with the exception of our Roth IRAs these accounts are not comprised of individual dividend stocks. For my 457K and most of my Roth IRAs, I mainly invest in ETF and Mutual Funds.

      Please feel free to visit our Dividend Stocks Portfolio page where we list the dividend paying stocks we own. This is a separate investment account we actively review and maintain.

      Thanks for stopping by...Cheers to your future dividends! AFFJ

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  7. Happy Healthy and Wealthy GirlJune 23, 2014 at 7:04 PM

    looks like a great month! thanks for sharing!

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    1. A Frugal Family's JourneyJune 24, 2014 at 8:59 PM

      Thanks HHWG. All things considered, I definitely can't complain. :) Thanks for stopping by. AFFJ

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