Everyone in my position was informed that we will all be getting a raise effective January 1, 2008! Nice surprise!!
For privacy reasons, I haven’t provided much detail on my position and what I do. I will say that I am in middle management for a private company. To remain competitive, the company believes in providing their employees with excellent benefits and pay. From what I understand, they recently did a survey of what similar companies pay those in my position. Since we were being under paid relative to the competition, the company gave us all a raise! Yeah, they want to keep us that bad.
With the extra money coming in next year, there are some implications to my retirement plan. Instead of hitting the next tax bracket in 2010, I’ll actually reach it a whole year earlier in 2009. This makes it even more important for me to max out my Roth IRA. But now I wonder if the savings are all that significant in the next two years… because a part of me doubts that I will reach the next tax bracket after 2009. Wait and see I guess.
All the extra income will go into building my Investment Portfolio. As some of you may know, my portfolio is not well diversified with investments in just two companies. I hope to change this over the next 12 months, with a focus on about 8 to 10 companies in various sectors. Extra money means extra savings!