Well 2008 didn't quite turn out as I had planned. The market was down about 40% for the year and some of my dividend stocks stopped or decreased their dividend payments. I will recap what I had forested for 2008 and look ahead to my goals for the end of 2009.

I started tracking our yearly progress towards reaching our retirement goals of having $2 million in retirement assets as well as reaching $40,000 in dividend stock income. I originally wanted to complete both these goals by the time I am 60 which is 14 years from now. But the market decline in 2008 will add a couple of years to my goal and my new plan is to retire at age 62 which is in 16 years.

Retirement Assets
In order to reach our retirement goal, we need to average an 8% investment return along with a 21% contribution to our retirement plans for the next 16 years. To calculate the amount needed for the end of 2009, I start with our 2008 year end retirement balance of $355,030 which is the balance of our retirement accounts as well as our taxable stock account. We then add the 8% investment return which is $28,402 for a total of $383,432. Next I add our retirement contributions of $21,000 for the 21% contribution and a grand total of $404,432 needed at the end of 2009.

As part of our retirement contributions, we will fully fund our Roth IRA's for a total of $10,000. My wife will make a 6% contribution to her 401(k) and I will contribute 12% to my 403(b) plan.

Retirement Assets Summary 2008
$508,000 2007 year end retirement asset balance
$40,640 8% investment return
$20,000 contributions to our retirement accounts
$568,640 2008 year end retirement balance (2008 year end actual $355,030)

Retirement Assets Summary 2009
$355,030 2008 year end retirement asset balance
$28,402 8% investment return
$21,000 contributions to our retirement accounts
$404,432 2009 year end retirement balance

Net Worth 2008
Our goal for Net Worth for the end of 2008 will be $880,954 which is the increase in retirement assets. (2008 year end actual $629,685)

Net Worth 2009
Our goal for Net Worth for the end of 2009 will be $683,637 which is the increase in retirement assets that includes and 8% investment return and $21,000 in contributions for 2009.

Net Worth Summary for 2009
$404,432 2009 Year End Retirement Balance
$205,000 House
$35,271 Cash
$14,000 Cars
$3,000 Personal Property
$21,934 529 Accounts
$683,637 Total

Dividend Income 2008
We also plan on growing the yearly dividend income to $9,000 for the end of 2008 from our end of year 2007 balance of $7,495 by reinvesting dividends and investing additional money every month into our stock portfolio held at Zecco. (2008 year end actual $5,907)

Dividend Income 2009
We also plan on growing the yearly dividend income to $7,000 for the end of 2009 from our end of year 2008 balance of $5,907 by reinvesting dividends and investing additional money every month into our stock portfolio held at Zecco. I plan to be a little more conservative with my stock purchases for 2009.

And lastly we will split $550 a month between our children's 529 plans for the year.

Let's hope the plan goes better in 2009 than 2008.