2022 Goals – July Review

If you are new to this website, this year I have set up some goals for 2022 and they are:

1. Be more intentional
2. Write more
3. Max out our Roth IRAs
4. Research other means of income
5. Compartmentalize for long term goals

The year started off with an article about this venture and it is here. And, for those who may be following along, here is where you can find the other articles:

• January
• February
• March
• April
• May
• June

Arts festival in Ann Arbor – entire blocks were like this

The reason for this is two fold: to help keep me accountable as well as provide a model for others in the skilled trades to mimic. Sometimes it just takes a person to forge on and others will follow – which is what I hope: some in the trades see a plan and can adapt it to their own personal life. If you aren’t being strategic in what you are doing, you are not maximizing what you can do.

It has been seven months already – how am I doing with my 2022 goals? How does my intentional planning look, various goals written down to focus on and formulate a plan of attack?

July has been another busy month for mainly work. Travel means disruption for my normal schedule and that takes some strategy to try and maintain what I normally do in a rhythm. This has challenges and adds to the complexity of trying to establish a routine.

And, July was the second month I suspended out IRA contributions to get some things back on track.

2022 Goals – July Be More Intentional

Kitty Hawk NC – when the beach isn’t crowded and a rainbow shows up

For this one, it’s fairly straightforward: by continuing to write on a consistent schedule I am strengthening my intentionality. To develop good leaders, intentionality is a must. To take it a step further, if you want to have a more successful and fulfilling life, you have to be intentional. Also, I have been talking with others who want to start their own business and guess what? It takes intentionality – and A LOT of it, too. There really is no way around it.

There are instances where success seems to find someone without them doing anything to earn it – and I’ve seen it, too – but for any real, measured, significant and lasting success, it takes intentionality. There really is no substitute for it. Not even natural born talent.

To that end, I have taken steps in being more intentional about the things I do – and you should too. This means more structure, more focus, and more deliberate action. More things are getting done as a result and better things are happening. Intentionality is, as I’ve said elsewhere, the key to just about everything else for me going forward.

So, what does that look like for me – and for the month of July?

I have been traveling – both personal and professional – and I have visited Ocean City MD and Kitty Hawk NC, both beaches, along with some time in Michigan. Yea, I was intentional about taking those trips and what to do while visiting. I may not like summer (actually I HATE it) but I still try to be intentional about what I’m doing.

2022 Goals – July Write More

Writing provides me direction, clarity, and an outlet for creativity

This one’s easy: I am certainly achieving this goal. The end of the month consists of these reviews and at least one more post per month helps me reach it. What’s more, these monthly reviews help me to realign with the initial reason I started this website in the first place: outlining ideas as to how someone can save for retirement in the skilled trades. I also have an article about how someone can prepare to plan – well, they can adapt the way I do it for their own lifestyle. That one is still in the works; I’d look for it to drop sometime soon.

Of course, I have many other great articles here and try to promote them in various ways. I just recently published an article about generational wealth, my time in Chicago and 150 North Riverside (engineering marvels), and the younger generations, technology, and the construction industry – it’s interesting to me to see just how much things have changed – and are forecasted to continue to in the coming years.

As it is right now, when you google “the pros and cons of the trades” or “talent or tenacity” or “passion vs opportunity”  or “work life balance in the trades” you will see this website listed on the FIRST page.  There are reasons for this – notably because google has metrics they track – and my content isn’t click bait: it’s substantial in nature. This lends itself to quality and that is staying the same going forward.

It will take me some time to come up with some of the articles I have in mind and many of them have substantial research components. And building a brand takes time. I have been at this for four years now, and I still have a lot I can do yet. In the end, it will take a mixture of tenacity mixed with talent to see this become successful – something I’m invested in. The more content here the better the brand is perceived.

This month, just like the last two, due to the large amount of traveling, I will have more to write about as well as some really great pictures to incorporate into the various articles. I always like to be more personal when it comes to media content here and these intentional trips have provided me with an abundance of great pictures for future articles.

2022 Goals – July Roth IRA

Time and money – the two we need for Roth IRA (and other investment vehicles) growth

 

For the past two months I elected to suspend our IRA contributions. It’s not too big a deal for two main reasons. First, it is only for two months and we have until April 2023 to max out the year. Of course, that means increased contributions in later months but that is achievable.

The second reason is that I have other retirement contributions: Annuity as well as pensions. Of course, I have a plan to max out our IRAs for maximum retirement savings but this small postponement is something I can weather. Having said that, the breakdown so far looks like this:

For year 2022 our monthly contribution rates are:

January 2022: $923.04

February 2022: $923.04

March 2022: $923.04

April 2022: $1,153.80

May 2022: $923.04

June $0

July $0

Total for 2022 year up to this point: $4845.96

 

While the suspension of the contributions have been for the past two months, we still have opportunities to max out for the year.  We are focusing on this year alone to see how things look, adjust, and refocus at the start of 2023. Reiterating the goal here: to max out our IRAs for the year of 2022. Since we can contribute through the first four months of 2023, it’s definitely conceivable to max them out.

IF you are NOT contributing the max amount to a Roth IRA then you are missing out: not just on an opportunity to increase your retirement savings but also diversifying your retirement income. How? Because it’s highly likely that any contributions an employer has made on your behalf (whether it is a 401k or an annuity fund for those who are union) are pre tax or tax deferred – meaning you will have to pay the taxes later in retirement. By maxing out your Roth IRA you have a retirement account that you pay taxes on now so it is tax free when you withdraw it. You are effectively diversifying your retirement streams – by all metrics a smart move. Click here to learn why I chose a Roth IRA.

*I get it: things come up that keep us constantly reevaluating things – that is precisely what has happened to us. It is my hope that the way we approach this is something that others can replicate.*

And, in the end, I have talked about making this part (the financial component to this website) of a greater consulting package – a good segue into my next section.

2022 Goals – July Researching Other Means Of Income

I have some ideas – holdovers from the last several months – that I need to explore more thoroughly in this area. Many of my brothers and sisters who are looking to go into business for themselves have a lot on their plate when they take the plunge – and marketing/business development is a crucial part to their eventual success. It is also one of the most foreign areas for those in the trades.

To me, that seems like a ripe opportunity. A couple months ago, I did some preliminary research and I need to continue to do some more. Ultimately, I need to just start somewhere and building a consulting website and business name seems like where it’s at. As I’ve posted recently, I have some ideas. The problem that I have, at least right now and for the foreseeable future, is that I am getting really busy – almost too busy to contribute to this website and articles – almost. This is my hobby and I have no intention of neglecting it; I just need to really hone in on how to better prioritize what needs to be done – and be intentional about it.

Sometimes people just need some help – and I believe I can provide it – for a price, of course.

Also, there is another idea I have been thinking about for a few weeks – again, based on opportunity – and I definitely see it. I’m not going to tip my hat right now; instead, I’ll start to do some preliminary think tank sessions and gather some more info first. I include it here so I can say I’m exploring various avenues.

2022 Goals – July Compartmentalize For Long Term Goals

I am a BIG fan of compartmentalization

This section is fairly comprehensive, as it has layers to it. In this section, I detail:

1. Build up my emergency/opportunity fund more
2. Build up another savings fund
3. Build up another investment account
4. Build up custodial accounts for each of my kids (UGMA/UTMA & Roth IRA)

I’ve said this before but I prefer to compartmentalize – it helps me to keep things straight. Keeping various accounts separate for various reasons helps me to organize things – intentionality at play, here. That being said, I have been focused in growing each of the above and a breakdown follows.

Build up my emergency/opportunity fund more

Our main Emergency fund is still where it has been at – we have at least 6 months of savings if needed – and we have no intention of touching it unless we have to. Otherwise, my personal goal here is to build it up to at least 9 months, something I have wanted to do for a while now but have lacked the discipline.

Our large fund has taken a hit due to paying cash for our van but that is exactly why we we save amounts in the first place – so we don’t carry debt. I’ll be methodically building that fund up over the next year. I actually have a plan to build this up in the first part of 2023 and hope to have it back to what it was by the first part of 2024. Still, I have some plans to begin increasing this this year and it’s duly noted.

The key takeaway, though, is to know that by creating a plan and exercising discipline, it we were able to save up and not have to finance a vehicle. As such, we owe nothing on it. What’s more, this is something that everyone in the skilled trades can do – and should. For all that you are worth, you should steer clear of D.E.B.T. (Don’t Ever Borrow That). It has taken many a person down to the poor house.

Build up another savings fund

Now, I have set up a small automatic deposit to another checking/saving account I have, utilizing it as another e/o fund. The amount is small but you have to start somewhere; you do not want to fall victim to paralysis by analysis – you feel overwhelmed and can’t figure out where to start – so you never do. Currently, I am transferring $10.00 a week into it for a year in total of $520.00. The goal, as outlined previously, is to develop this account into a possible larger vacation/opportunity fund.

I’m not confident this account will grow into something substantial; instead, it will likely take time to develop and extra coin should go here. As you can tell from the listing, funding the Roth IRAs are the most important financially here. (Well, that AND rebuilding our large expense account). The important thing here is – and if you are just starting out pay close attention – to start somewhere. Don’t get overwhelmed at the complexity of it all; instead, compartmentalize, focus on just one or two things (whatever you have the bandwidth for), and focus on accomplishing that. Then, when you feel like you have a good grasp on it, start elsewhere. We eat that elephant one bit at a time.

Build up another investment account

I love acorns! This investment platform has tremendous potential for wealth growth

I signed up in January and as expected, it has grown via unintentional intentionality. The robo round up platform has managed to help us save the nickel and dimes – you know what I mean: you break that $20 bill and the next thing you know, it is gone. So, when we use our credit cards (those linked to the platform), the value is rounded up and when the total reaches $5.00, it is withdrawn from the bank and placed in the investment account.

Another great feature is their chrome plug in. You download and add it to your chrome browser, and you can clearly see where Acorns has deals with numerous companies. A portion of what you spend is automatically invested into your account – likely to encourage acorn users to use those specific companies. Here’s a snapshot to show you what I mean:

In this example, up to 1.1% is invested into my acorns platform just for staying at Holiday Inn – my preferred place, anyway. Getting a portion invested into my account just for using them when I have been using them already? Talk about winning! ( I think at last I saw we look to have around $36 invested into our account by someone else just for staying somewhere/renting somewhere I was going to already).

Acorns is a fantastic way to save a little at a time – something I definitely recommend for those of you in the skilled trades. Remember, every little bit helps. Again, don’t get overwhelmed – just start somewhere. Be strategic – be smart – and be intentional. People who put the time in to build wealth do these things – it doesn’t happen overnight (realistically anyway).

Build up custodial accounts for each of my kids (UGMA/UTMA & Roth IRA)

It takes money – and time – to grow a sizeable nest egg

This is another area I hope to inspire other skilled tradesmen to adopt. One of the best things you can do for your kids is to educate them on financial literacy – setting them up with the best possible chances as they move into adulthood. The next best thing is to start saving for them as early as possible. Fortunately for us, we are doing both – and you should be doing this, too.

We have chosen to open and deposit UGMA/UTMA accounts for each of our kids and deposit a modest amount in it per week (currently, it is $5.00 per kid). These accounts are at Acorns and when the kids turn 21 (the age my state says a custodial account is to be turned over), they will have some money to make a down payment on a house/pay for school/whatever they need/want. Obviously, the hope is to educate them with fiscal responsibility and they make responsible choices. To that end, our yearly goal from automatic deposits is $260.00. Extra coin will eventually find it’s way in it – the first $1,100.00 are tax free, after all. Again, compartmentalization and starting small.

As an example, we started this at the beginning of the year. After 7 months, each of our kids UGMA/UTMA account has a balance of just over $130. That isn’t a lot BUT it is a humble beginning. IF we kept the contributions as they are, and at the current rate, in 10 years I estimate over $2,000 in each of the kids accounts. That’s nothing to shake a stick at.

The Custodial Roth IRA accounts are not on a weekly basis; rather, they are when the kids have earned income – and chores don’t count. Things like walking someone’s dog, yard work, etc. I had initially planned on doing it on a weekly basis – but to ensure I don’t tread on the IRS, I’ll keep an Excel spreadsheet when they have earned income and continue saving. There are income qualifiers and rules that I’m not detailing here; instead, I plan to detail it in a separate post – perhaps part of a consulting/building generational wealth for those in the skilled trades package. Plus, if I do launch something for additional funding via consulting, I can hire my kids to do tasks for me – which can be then turned into IRA contributions. Sometimes, it just takes one person to forge a path to inspire others to follow.

And follow I hope they do: after all the time I have spent researching and scouring the internet, much of the advice here is for those in the office and their respective 401ks. I have found very little by way of those in the skilled trades and especially those who are union. Most advisors have an erroneous understanding of what annuities are when it comes to unions – they are NOT what they think they are. Therefore, the advice and direction they need are unique – and I hope to be that unique voice in the forest as they forage on.

Wrapping up the month

July 2022 is wrapped up, a success by and large, even if we have postponed our June/July IRA contributions, and has given me food for thought going forward throughout the next coming months. Although we had a major purchase and our large expense account has taken a hit, we do not have payments and that is something I relish. Moreover, we have embarked on a large amount of travel and we always seek to make the most out of business and bring personal pleasure along. I have some great articles in the queue, a consulting idea in conception, and I look forward to exploring other areas to write about.

All in all, the month was good, I’m gaining some consistency on most fronts, and those areas that I lag in I will eventually get nailed down. One thing I have going for me is that I like to write – and I am tenacious. After all, I have been at this 4 years now and building a brand takes time. And that is exactly what I’m doing.

And I’m building a model for other tradesmen to follow. The more detailed I get here, the better the opportunity there is for others. There is a very real need for many to see things mapped out so they can adapt it to their own situation. I’m experimenting to see how I can create a message that resonates with many others.

Follow along, partner up, and share with others your ideas; trust me, there are numerous others who can benefit from the collective wisdom. And when you find some success, tell others.