2018 Financial Review

Every January I review how the past year went, compare it to previous year’s prediction, and give an estimate for the upcoming year. My last paycheck for the year says I got 296K W-2 gross income in 2018. From what I can tell of my brokerage accounts, I had at least 4K investment income. That puts me over 300K pre-tax income for the year, which is just astounding to me as I never imagined making so much growing up! But my boyfriend likes to quote Professor Scott Galloway saying “It’s not how much you earn, but how much you burn.” so I’d also like to calculate my annual expenses and savings rate for the year. Let’s see how this year compared to my 2017 Financial Review predictions…

Category Predicted Actual Notes
Cash No change -6K I just made a 6K backdoor IRA contribution for 2019.
Stocks (Brokerages + ESPP proceeds) +141K +148K I had predicted 119K RSU contributions using pre-tax numbers, the actual uses post-tax proceeds. From my paycheck, I actually got 130K of RSU’s pre-tax. Between ESPP and RSUs I got 112K post-tax, sold 98K of it (all RSUs and some ESPP), and am currently holding 18K. I believe in my company and can wait till ESPP stock becomes a long position.
Retirement (401K + IRAs) +27K +34K I contributed 28K to my 401K and am counting a 6K 2019 backdoor IRA contribution with this annual review.
Other (Rollover IRA) No change -.3K I rolled my rollover IRA into my 401K. I hadn’t planned to do this last January.
Car Loan Paid Off Paid Off My car turned 5. I paid off the loan and own it outright.
Everything Else No change No change I have a lower credit card balance and have misplaced some Treasury bonds.

My net worth increased by 139K to 353K in 2018 between December 2017 and December 2018 entries, broken down as follows:

  • Cash: 11K original amount, -6K change from 2019 backdoor Roth IRA contribution
  • Stocks: 85K original amount, +121K change
    • +36K personal savings
    • +29K ESPP contributions for five quarters
    • +83K proceeds selling RSUs
    • -28K losses remaining. I realized 5K gains, 3.5K losses, and have 15K unrealized losses in IXUS.
  • Retirement: 122K original amount, +21K change
    • +18.5K my contributions
    • +9.25K company contributions
    • +6K 2019 backdoor Roth IRA contribution
    • +.3K IRA rolled in
    • -13K losses remaining
  • Other: Rolled .3K into 401K
  • Car Loan: Paid off remaining 2K
  • Everything else: Stay the same, within $3K of current levels

2019 Estimates

  • Cash: +6K for 2020 backdoor Roth IRA contribution
  • Stocks: +24K ESPP contributions for four quarters, +50K proceeds selling RSUs
  • Retirement: +19K my contributions, +9.5K company contributions
  • Bonds: Currently this is a placeholder for some misplaced Treasury bonds. I want to either find them or write them off as lost forever.
  • Everything else: Stay the same, within $3K of current levels

Annual Expenses & Savings Rate

300K pre-tax and 201K after-tax is probably a good estimate of how much income I made in 2018. I saved 182K this year and my expenses are ~28K so I have an 86-90% after-tax savings rate.

  • Taxes: 99K total (withheld so far)
    • 58K federal
    • 27.5K state
    • 13K SS & Medicare
  • Stock Contributions: 148K
  • Retirement Contributions: 34K
  • Rent: 12K, I share a 3 bd apt with roommates
  • Credit Cards: 16K, I pay off my balances in full each month