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Long time?! DW Promotion and Retro Pay!

March 26th, 2015 at 04:24 pm

Apparently it has been a year since my last entry. I've been on frequently, just not blogging I guess, however, commented on a few other blogs.

My blog is usually straight and to the point, so this will be no different!

1. Wells Fargo (WF) Mortgage and Escrow. I FINALLY got them to pay our land taxes in a one-time yearly pay-in-full, now I don't have to hunt them down to get reimbursed for the installment fee.

2. Mortgage is due to be under $160K in June 2015 (with current additional payments), I may make it sooner, but trying to get rid of PMI. The loan documents state 5 years or 20% equity from original appraisal, whichever is longer. The use of DW's new promotion may actually make those criteria happen at the same time this December (read options below). I can't stand WF.

3. Retro pay (retro to Jan 4, 2015), will be close to $7K net. We should see that check in a week or two. That will just sit in the EF, which has been drawn down recently for medical expenses and some updates to the home (fence in 2014).

4. The raise that is doubling her salary,

Option 1. Mentioned above with removing PMI ($75/ mo), no, not really that bad, but 20%+ equity sound nice.

Option 2. Save to purchase land in the boonies, looking at about $70K for a 3.5 acre parcel. Expensive here in NY, and not much nice parcels left in this area. Pricey.

Option 3. Bank it all.

5. Retirement will be increased with any of the above. May be able to max both ROTH's out this year.

6. May need to look at opening some 401K's, the tax deduction may be needed to keep tax liability down and it will probably double from last year.

Problem, I am indecisive, DW trusts me and I include her in all large decisions, but my head spins thinking about the options, as we both want them all.

Some decisions to be made!

2 Responses to “Long time?! DW Promotion and Retro Pay!”

  1. creditcardfree Says:

    Congrats to your wife on her raise! Also exciting news.

    I would look at working on the retirement piece first. Will you be in a new tax bracket? If so 401Ks are a good place to start to reduce tax liability.

    After that I say, bank it all for few months while you ponder all your options! Smile

  2. Xtreme Thunder Says:

    Thanks CCF, she was on Cloud 9 yesterday after the news! The papers for Retro pay were for AUG 2014. but was told the books were closed on 2014 and couldn't happen, which I think is kind of crappy, but whatever. She thought the changeover was never going to happen, she was looking at other options.

    Both NYS and FED will be going up one bracket. Not sure if we can make it work kicking back down to previous bracket with retirement 401K, but anything helps.

    Yup, probably will end up banking it for a good part of the year. A fully funded EF sounds great to us!

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