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Old 06-30-2013, 09:39 AM
 
1,343 posts, read 2,657,933 times
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Hello,

How much should I plan on saving for retirement?

Should I include Social Security in this calculation?

I am 33 and wife is 32. I plan on retiring at 60 or 62, not sure.

Any questions or comments would be grateful.

Thanks,
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Old 06-30-2013, 09:50 AM
 
105,523 posts, read 107,464,940 times
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there is no magic formula. it is going to be eventually based on your expenses,wants and needs when you retire.

just save as much as you can and as the decades go on you will have a clearer picture.
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Old 06-30-2013, 10:01 AM
 
Location: southwestern PA
22,204 posts, read 47,093,850 times
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Quote:
Originally Posted by darrell2525 View Post
How much should I plan on saving for retirement?
As much as you will need.
Not a smart-aleck answer! Only YOU know if your house will be paid off, what travel/entertainment plans you have, what you medical status will be, what will be the cost of living for where you retire, etc.

Quote:
Originally Posted by darrell2525 View Post
Should I include Social Security in this calculation?
We did not.
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Old 06-30-2013, 10:02 AM
Status: "that's just your projection man" (set 29 days ago)
 
Location: The Triad
34,091 posts, read 82,367,638 times
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Quote:
Originally Posted by darrell2525 View Post
How much should I plan on saving for retirement?
A lot.
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Old 06-30-2013, 12:26 PM
 
30,850 posts, read 36,704,860 times
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Quote:
Originally Posted by darrell2525 View Post
Hello,

How much should I plan on saving for retirement?

Should I include Social Security in this calculation?

I am 33 and wife is 32. I plan on retiring at 60 or 62, not sure.

Any questions or comments would be grateful.

Thanks,
It generally depends on how much you have already saved. Most financial planners recommend saving 15% throughout your working lifetime (starting in your 20s) if you want to retire decently at 65. I believe the 15% includes any employer match. However if you have 0 saved for retirement in your 30s, then 15% is probably too low.

Here is a good article on retirement savings rules of thumb:

Ask Carrie: How Much Should I Be Saving for Retirement?

I wouldn't recommend including Social Security in the calculation, but standard financial planning normally does.
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Old 06-30-2013, 12:33 PM
 
2,991 posts, read 4,263,456 times
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The question is so complicated and the answer so uncertain that nobody can really give you much useful information in an internet-forum post. But a good source would be one of the books on retirement by Henry Hebeler. For example, the one titled Getting Started in a Financially Secure Retirement, published by Wiley.
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Old 06-30-2013, 01:04 PM
 
Location: East Coast of the United States
27,175 posts, read 28,250,952 times
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Quote:
Originally Posted by darrell2525 View Post
Hello,

How much should I plan on saving for retirement?

Should I include Social Security in this calculation?

I am 33 and wife is 32. I plan on retiring at 60 or 62, not sure.

Any questions or comments would be grateful.

Thanks,
Look at it this way: Suppose you had $200,000 in your retirement account in early March 2009. That amount could have easily grown to $450,000 by today with you doing literally nothing at all - not even adding any more money from your paycheck to your account.

My point is that, once you've reached a certain level in your account balance, even just a few years can make a huge difference in how much you have saved for your retirement.
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Old 06-30-2013, 02:47 PM
 
1,343 posts, read 2,657,933 times
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Quote:
Originally Posted by mathjak107 View Post
there is no magic formula. it is going to be eventually based on your expenses,wants and needs when you retire.

just save as much as you can and as the decades go on you will have a clearer picture.
Thanks,

Currently my savings are:

My 401k contributions:
$17.5K per year. Company adds 3%

Wife 401k contributions:
$3200 per year. Company adds 4%. She makes less than I make.

That's it. We don't have extra right now for Roth IRA. I still trade to save in savings account for house fixing/additions, vacations, and future new car, etc. Buts that's it. House will be paid off in 15 years. no other debt we have besides a car loan that can be paid off now (but then no more savings if I do that). I don't plan on getting no more debt until 5-8 years, and that will be new car.

That's it for now.
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Old 06-30-2013, 02:57 PM
 
1,343 posts, read 2,657,933 times
Reputation: 416
Quote:
Originally Posted by mysticaltyger View Post

Here is a good article on retirement savings rules of thumb:

Ask Carrie: How Much Should I Be Saving for Retirement?
Thanks,

I have a question. If our gross income is $100K (before taxes), and the article suggest we save 25% of our income?

1. Does this mean we should be saving $25K per year in retirements accounts (401k and/or Roth IRA)??

2. Does the 25% include the company match by employer as well?

Thanks
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Old 06-30-2013, 03:56 PM
Status: "that's just your projection man" (set 29 days ago)
 
Location: The Triad
34,091 posts, read 82,367,638 times
Reputation: 43641
Quote:
Originally Posted by darrell2525 View Post
My 401k contributions: X% of my gross
+Y% of what the employer is willing to match

Wife 401k contributions:X% of her gross
+Y% of what the employer is willing to match

We don't have (anything budgeted for) now for Roth IRA.
House will be paid off in 15 years. ... no other debt
Better than many... but not enough.

Start with upping the 401K to max out the employer match.
Then open the IRA accounts and max them out.
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