Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
6 years ago, I couldn't even max out my 401k at my previous company. The max contribution allowed by my company was 25%(i think due to the companies highly compensated rules or something to that matter), and I didn't make enough to max out my 401k(15.5k limit in 2007). My biweekly take home was 980 after putting 25% in. I can say that I've been a saver since I was a child though. I put my retirement savings first and have only met a few people who maxed out both roth and 401k.
6 years ago, I couldn't even max out my 401k at my previous company. The max contribution allowed by my company was 25%(i think due to the companies highly compensated rules or something to that matter), and I didn't make enough to max out my 401k(15.5k limit in 2007). My biweekly take home was 980 after putting 25% in. I can say that I've been a saver since I was a child though. I put my retirement savings first and have only met a few people who maxed out both roth and 401k.
good job! I think you'll run across several people on here who max both (as stated before, my wife and I do) simply because it is a personal finance forum and many people seeking out knowledge are already on the right track with savings. Keep up the focus on saving (and investing!).
1. what's your contribution amount for the year?
2. About how much is your salary?
3. Do you find it difficult to contribute the full 17,500?
4. what's your company match?
1. For this year, about 17450
2. ~130k/yr
3. I started working a new job in Aug, and I wasn't being paid at my last job (started a company, didn't make enough to pay myself), so I am putting almost 40% of my paycheck in the 401k right now, it is difficult, next year since I have more paychecks to spread out the cost it will be easier.
4. 50% of every dollar I put in, up to the 17.5k cap.
I used to only put in about 10-12k/yr, and put $5k into my Roth IRA. I was doing my own company for 15 months, but didn't pay myself a salary, so I decided to play catch up when my new job started. I am also maxing out my Roth IRA this year, since I will probably not be able to put money in the Roth IRA again.
I was kinda of kidding, but I do cash about 1/2 my savings a year. Roughly 30k a year. So like 15 k in cash a year. I do Max out my roth and my wife has a good pension from the state with healthcare when she retires.
This is 20 years out. But after it's all gone, i'll still have cash. The state can pay for my nursing home.
Yes. We also fully fund our ROTH accounts as well.
So you both contribute $17,500 401k plus $5500 Roth = $46k per year to retirement?! You realize with just a 6% annual return that equates to $3.8 million after 30 years assuming $46k/yr in contributions? 10% annual return will equate to $8.3 million. Sounds pretty ridiculous to me, unless you are also spending $200k/year right now. What's the point of having so much money if you don't enjoy it?
So you both contribute $17,500 401k plus $5500 Roth = $46k per year to retirement?! You realize with just a 6% annual return that equates to $3.8 million after 30 years assuming $46k/yr in contributions? 10% annual return will equate to $8.3 million. Sounds pretty ridiculous to me, unless you are also spending $200k/year right now. What's the point of having so much money if you don't enjoy it?
Well, if you assume inflation will run at 3% annually for the next 30 years (slightly above recent rates but slightly below the rate since WWII), then in current dollars that $3.8 million amount would be about 1.56 million. If we use the 4% rule of thumb (yes, we can debate that rule, but I'm just using it as a very rough guideline for illustrative purposes here) that would be about 60K annual spending in current dollars in retirement. Which is certainly a nice chunk of change, especially if you add in any social security benefits, but it's hardly "Bentley in the driveway" income.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.