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I'm behind. $3700 in 401k that started last may. 10k in 2 other accounts from my previous job. I'm currently only doing 5% and my employer match is like 2 % I think. Plan on bumping it up in May when we get our raise. I'm 36. Also have pension at new job.
You're 36 with $13.7k. Yes you're behind, as they say you should have 1.5 or 2x your salary in retirement by age 35. But you're still only 36 which means 3 decades to go until retirement -- make a plan now and start executing. Can you put in more than 5% - even 6 or 7% bc it adds up; also figure out for sure what the match is.
You're 36 with $13.7k. Yes you're behind, as they say you should have 1.5 or 2x your salary in retirement by age 35. But you're still only 36 which means 3 decades to go until retirement -- make a plan now and start executing. Can you put in more than 5% - even 6 or 7% bc it adds up; also figure out for sure what the match is.
Yeah I plan to bump it up each year. I have 10k each in an ira and 457 I haven't moved.
I realize this forum is not the norm so I am sure there are some very high salaries here too. But maxing out your 401k is pretty amazing. No idea what some of you make but pretty sure many of us don't make enough to even have that as an option. I'd be contributing 30%+ of my salary to max for the year. LOL
Good stuff in here.
It gets easier the longer you focus on savings. When I first started, my savings rate was ~10%. When raises came along, "I didn't get a raise, my savings did". It helped with lifestyle creep, since we all used to live on less, why does it seem so impossible now?
Anyway, my family savings rate is 30% now, on track to be at 50% in 3 years! This is all without any lifestyle changes, so we don't feel like we're cutting back at all. I don't expect we'll go past 50%, if we still have more money after that, we'll spend the excess like drunken sailors.
We just don't go looking for bigger bills to pay after a raise. It's pretty easy IMO.
It gets easier the longer you focus on savings. When I first started, my savings rate was ~10%. When raises came along, "I didn't get a raise, my savings did". It helped with lifestyle creep, since we all used to live on less, why does it seem so impossible now?
Anyway, my family savings rate is 30% now, on track to be at 50% in 3 years! This is all without any lifestyle changes, so we don't feel like we're cutting back at all. I don't expect we'll go past 50%, if we still have more money after that, we'll spend the excess like drunken sailors.
We just don't go looking for bigger bills to pay after a raise. It's pretty easy IMO.
Yeah 50% is our number...if we get excess we look at our project list and decide between saving more or slashing a project off the list.
As your salary jumps you can really jack up your savings/401 contribution rate and see big increases, especially over the years as the growth compounds. Then you start having kids and they lay waste to those plans. Just kidding, kind of. It really comes down to how disciplined you can be with your expenses. There's lots of room for saving in almost everyone's budget it's just a matter of whether that's a priority.
You are doing great for having such a low salary. Do you live with family?
No but I did live in an apartment living room for a while a few years back, with a steeply reduced rent compared to the two people in the "real" bedrooms. My wall was a curtain.
It gets easier the longer you focus on savings. When I first started, my savings rate was ~10%. When raises came along, "I didn't get a raise, my savings did". It helped with lifestyle creep, since we all used to live on less, why does it seem so impossible now?
Anyway, my family savings rate is 30% now, on track to be at 50% in 3 years! This is all without any lifestyle changes, so we don't feel like we're cutting back at all. I don't expect we'll go past 50%, if we still have more money after that, we'll spend the excess like drunken sailors.
We just don't go looking for bigger bills to pay after a raise. It's pretty easy IMO.
I do see what you mean. I came out of college making a decent living for someone in their mid 20's but my career potential earnings also aren't going to sky rocket as it's a pretty steady earning potential across the board unless I get into a management position down the line. Right now I get a 3% raise ever 1-1.5 years. Anytime that happens I increase my 401k contribution by 2%. My wife and I (29/30 years old) are currently investing 13% total of our salaries into 401ks and Roth IRAs and putting about 10% into liquid savings each month. Buying a house and filling it up really took a dent in some of that for a few years.
Thanks for your insight though. Doubt we will ever max out our 401ks given our modest salaries, but we are also relatively frugal and won't need to in order to retire comfortably. Good luck to you.
I'm behind. $3700 in 401k that started last may. 10k in 2 other accounts from my previous job. I'm currently only doing 5% and my employer match is like 2 % I think. Plan on bumping it up in May when we get our raise. I'm 36. Also have pension at new job.
You'd be surprised how much you can save in a relatively short period of time. With focused intensity, believe it or not, you could still retire early. Just take it one month at a time.
Folks could have switched jobs and closed out large balances in their 401k and rolled them to their ira.
I know i did when i switched jobs. In fact to answer the question i had 160k in my 401k when i rolled it out at retirement . So to answer the question i would say 160k at age 62 , that sucks yes?
But our actual retirement savings is multiple 7 figures.
I think only asking about an existing 401k is really not all that informative , especially because so many of us changed jobs in our careers.
I am not sure what asking about 1 part of someones assets means. In fact many with expensive 401k's only put in enough to meet the match and invest elsewhere.
I think asking age and amount committed to retirement would be better suited.
Some folks invest in real estate as a retirement plan and do not put much in a 401k
Last edited by mathjak107; 04-12-2016 at 04:51 AM..
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