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Old 01-07-2020, 11:26 AM
 
12,343 posts, read 17,899,543 times
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Quote:
Originally Posted by ChessieMom View Post
I don’t have a 401k option, but I do contribute 20% to my 457b, and 5% to my pension fund (a required contribution).
More or less the same thing.

As my financial planner likes to say, "you will be happy."
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Old 01-07-2020, 02:22 PM
 
4,989 posts, read 1,309,100 times
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Quote:
Originally Posted by CBN8819 View Post
Hey guys - After researching and speaking with several financial advisors I have been told that the ideal contribution percentage to save for retirement is between 15% and 20% of gross income. My current employer offers 100% match on the first 6% that you contribute. Currently, I have my contribution set to 10% out of each monthly paycheck. Would my total contribution be considered 16% since my contribution is 10% and my employer is matching 6% or would I need to contribute 15-20% not including company match to hit the ideal percentage that most advisors recommend. Thanks!
Your part is whatever your part is, however it reads. You only need to enter 6% to get the 1:1 match and max it out. If you're putting 10%, they're still matching the first 6%, and the other 4% you're adding is just your money, going in pre-tax.
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Old 01-10-2020, 11:55 AM
 
Location: Chandler, AZ
2,767 posts, read 1,399,296 times
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Quote:
Originally Posted by CBN8819 View Post
Hey guys - After researching and speaking with several financial advisors I have been told that the ideal contribution percentage to save for retirement is between 15% and 20% of gross income.
The ideal contribution is the one which maximizes savings. I cannot contribute 15-20%... I'll hit the cap long before the year is over. I adjust my contributions downward as my income increases so as to try to hit the cap right around the end of the year.

I suppose one could make a case for a bigger percentage and hit the cap early, but that's contrary to the principles of dollar-cost averaging.
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Old 01-11-2020, 04:52 AM
 
1,189 posts, read 447,587 times
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We save 20% of our gross in retirement accounts - split between our Roth IRAs and our 401k plans.
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Old 01-11-2020, 03:54 PM
 
Location: Upstate, NY
812 posts, read 336,346 times
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Quote:
Originally Posted by SWFL_Native View Post
I do 10% and my employer does a 100% match on 6%. I then put the remainder of savings to max out Roth.

During the next recession I’ll hike it to 15%.
This. Company match first. Then max a Roth. Then contribute what you can to the 401k (or equivalent) until you can max it. If you have even more money to save and invest, then contribute to a taxable account. The max this year for a 401k is $19500. At 50 you can add another $6500. The Roth max is $6000. At 50 add another $1000.
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Old 01-11-2020, 04:22 PM
 
2,769 posts, read 2,260,195 times
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Quote:
Originally Posted by dcfas View Post
This. Company match first. Then max a Roth. Then contribute what you can to the 401k (or equivalent) until you can max it. If you have even more money to save and invest, then contribute to a taxable account. The max this year for a 401k is $19500. At 50 you can add another $6500. The Roth max is $6000. At 50 add another $1000.
And then live in van down by the river and eat tv dinners. Good advice but not many can contribute that much.
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Old 01-11-2020, 05:55 PM
 
19,827 posts, read 14,435,054 times
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People get caught up in the percentages but that’s not really what’s important. What do you make now and what do you estimate you will need income wise in retirement? Once you have those you can start modeling what it will take and then percentages will come from that including your employer matching
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Old 01-12-2020, 03:56 PM
 
Location: Upstate, NY
812 posts, read 336,346 times
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Quote:
Originally Posted by jasperhobbs View Post
And then live in van down by the river and eat tv dinners. Good advice but not many can contribute that much.
Just suggesting order of “instruments.”
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Old 01-12-2020, 06:24 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
5,139 posts, read 2,335,504 times
Reputation: 3825
Quote:
Originally Posted by CBN8819 View Post
Hey guys - After researching and speaking with several financial advisors I have been told that the ideal contribution percentage to save for retirement is between 15% and 20% of gross income. My current employer offers 100% match on the first 6% that you contribute. Currently, I have my contribution set to 10% out of each monthly paycheck. Would my total contribution be considered 16% since my contribution is 10% and my employer is matching 6% or would I need to contribute 15-20% not including company match to hit the ideal percentage that most advisors recommend. Thanks!
Depends
What are some of your other objectives.????
DS (34) is in the 24% tax bracket. He doesn't contribute full allowable to 401k, no match with this company. However he does set aside monies for immediate goals, intermediate goals, and long range retirement goals.
In 2019 he needed immediate funds to carry him thru unemployment, he needed funds to purchase the stock options he had with his last company. So now he is rebuilding his funds; Hopefully he is also saving for a ring and a wedding
At his tax bracket, accounts with longterm gains and qualified dividends are taxed at ~15% rate. Plus there is capital losses. If these were held in deferred accounts (401k, IRA) these would be taxed at the marginal rate and no capital losses accounted.

What are your plans?
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Old 01-12-2020, 11:29 PM
 
839 posts, read 982,892 times
Reputation: 1100
Save until it hurts and then save some more. I try to hit the max each year. For me that's roughly 30%. Another 10% goes to my after tax Roth. My employer match on the 401k is 8% of earnings.

Last edited by UntilTheNDofTimE; 01-12-2020 at 11:40 PM..
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