I sent in my Federal, State and County taxes as well as the estimates for Quarter 1. I also fully funded my SEP-IRA for last year. This has left my bank account almost completely empty. That money was never really mine to use - I just had it saved up and earmarked for these things. But, seeing about $50k disappear from my bank account is quite heartbreaking. This is one of weird psychological things about self-employment. This year, my estimated taxes will be much closer to the correct number, so I suppose next year I won't have to go through this illogical sadness for the loss of money that was never really mine.

The refinance process is going well. They anticipate closing around mid-May. The loan officer told me what my credit scores that they pulled were: 803, 813, 826. That's the first time that I have been aware of that all three of the scores were over 800. I felt warm and gooey about it. About 8 years ago, my credit score was in the 600s.

My phone started acting up - it arbitrarily depletes its battery only to be full again when I restart, or will crash and turn off at arbitrary times. The screen is a little bit cracked too from me dropping it several times. It's an iPhone 7. I went ahead and ordered a new one - this one an iPhone X.

I got quotes for installing a ductless mini-split with two zones in my home. In my area it's common to have ceiling heat panels. It boggles the mind why someone created this bizzare physics-defying method of heating. It doesn't get too hot where I am except for about a month or so at the height of summer, so many homes including mine also don't have A/C. This new ductless system will solve both problems for me. The quote was for $5650 including a rebate from my local utility board. And I'll also be able to claim a rebate of $300 on this year's taxes for installing it. The quote is quite reasonable for what it is, but coming at the heels of tax depletion, a new phone, and closing costs, this is another thing that makes me feel financially stretched this month. But, I am grateful when I remember how not that long ago, this would have pushed me deeper into debt and cause a sense of loss and despair.

Once the refinance and the heat pump are installed, my only remaining big financial goals for the year are to replenish my savings account, and to fully fund my 401(k). That's doable, I think.

NW: $287,189.40

I am a big one for new year's resolutions. And birthday resolutions, sunday resolutions, month beginning resolutions, and so on. It gives me a sense of motivation and excitement. I accomplish some, and don't accomplish some. I somehow seem to be completely devoid of the guilt that comes with failed resolutions. If I don't accomplish it, I feel a bit annoyed, but just turn around and make it again.

Last week, I was in a bit of a funk, and on Friday, started to come out of it. I had a beautiful weekend, and vaguely made up some more resolutions for now till the end of the year. 

1. Make my sleep schedule more regular. I have been up later and sleeping less. My fitbit always gives me a "fair" score, and I need it to at the very least be "good". So, I plan to get in bed by 10pm, at the latest.

2. Lose 7 lbs. That's about a pound a week, and very doable, I think. I have amazingly lost weight since the start of the pandemic. I have not tried to lose weight, I just have. I think it's because the start of the pandemic just happened to coincide with my plan to go into full time self-employment, and I went from working 50-ish hours/week to about 28 hrs/week. The resulting lack of stress is what led to it, I think. I have never before in my life lost weight without trying to. I haven't lost a lot - about 10 lbs over the last 8 months. If I try and lose another 7 lbs by the end of this year, I will be at a weight I have not seen since 2005.

3. Exercise every day. This is unrelated to the weight-loss. I have over the past few years been very much out of the habit of regular exercise. I started to do a 15-min HIIT exercise about a month ago. And this month, I have changed this to alternate days with a 30 min cardio on alternate days. I can tell that the exercises are getting easier as time goes by and that makes me feel good.

All the above seem to be health goals. But, I know that health is inextricable from wealth. If I have health, I incur fewer healthcare costs. I potentially get to live longer and enjoy the fruits of my labor for longer. So, I definitely see this as a financial goal as well.

Other financial goals seem to be on track. I don't know exact numbers yet, but my accountant projects that I can put another $29k pre-tax towards retirement this year, and I think that will leave me with another $21k to to add to my brokerage account. These numbers seem high, but we'll see. I won't actually know until the beginning of February. I always overestimate how much I need to pay in taxes and save more than I need, so it's possible it will work out like this.

In other good news, I read reports this morning that Pfizer thinks their vaccine is about 90% effective. I am hopeful. I can't wait for the pandemic to draw to some sort of an end, and for me to see my parents again.

I just had a meeting with my accountant, and it was super helpful and exciting.

Here are the two primary changes that I am going to make:

1. Going to convert my SEP IRA to a 401(k), and that will allow me to put away significantly more this year towards retirement.

2. Starting next year, I am doing an S-election on taxes. This will reduce the amount of tax-deferred money I can put away for retirement in subsequent years, but I will be able to take tax-free distributions that I can then put into the market and can draw upon them sooner than my penalty-free retirement age. I call this an absolute win!

She's going to get the paperwork started to do payroll and other stuff like that.

She mentioned a 401(k) with a Roth component. I need to look into this. I am not quite sure how that works? I put in tax deferred money, and take out tax free money? That just seems too ridiculous to be true. I feel like I have read about Roth Conversion Ladders. Is this the same thing? Does anyone have experience with this?