Savings %

[streetdemon70]

not nearly enough. Trying to get rid of a car payment or 2 and then really hope to start putting some aside.

[AdamLX]

Max 401K contributions and about 40% net household income goes into savings.

For a two person household, getting into a position to live off one (the lower) income makes it very easy to accomplish.

[Denny]

you make too much money... I plan on hitting my financial stride just after my wife gets to the age where it'll feel REALLY inconvenient to have a kid

Strategy... he has it!

[Cooter]

Trying to sell the wife on the same idea. Got the dog and even offered to get another dog. Still isn't working.

you make too much money... I plan on hitting my financial stride just after my wife gets to the age where it'll feel REALLY inconvenient to have a kid

[The King]

Most people don't even make that much a year. Thank god for RailRoad Retirement.

Don't forget to mention the centerpiece of most retirement non-plans.....Social Security.

[FreightTrain]

Sound advice. Couple other good posts in here as well. I've edited my post...wasn't my objective to come across like a douche - but an unintended consequence.

Going forward, it's very true that most people don't have any clue how much they should be saving to reach their goals. What disturbs me is that many people don't have an idea how to even think about it. I posted this on the old board, maybe it's appropriate for this thread as well:

Here's something to get you thinking about retirement goals and how to get there (and why it's appropriate to think in $/cash flow terms instead of %).

These calculations can be done pretty easily on any financial calculator that performs time value of money calculations.

A. Calculate your retirement needs in first year of retirement (present dollars).

Use an annual inflation adjustment of 2.5% (or 3.5 or 5, just using 2.5% to show the math). Let's say you are currently 30 years old and plan to retire at age 60. You estimate that you will earn 10% a year on your investments until retirement. During retirement, you expect to earn 6% annually on your investments. You anticipate a 25% tax rate during retirement.

1. Say your annual need post-retirement is $60,000 in today's dollars.
2. $60,000 with a 2.5% inflation rate for 30 years will be $125,854.
3. Considering taxes, $125,854/(1-.25) = $167,805.

B. Calculate how much you need at retirement.

1. $167,805/(.06 - .025) = $4,794,429

C. Annual contribution to get you there.

1. $4,794,429(.10)/ (1.10)^30 -1 = $29,147 annual contribution for the next 30 years.

Most people don't even make that much a year. Thank god for RailRoad Retirement.

[Denny]

Sound advice. Couple other good posts in here as well. I've edited my post...wasn't my objective to come across like a douche - but an unintended consequence.

Going forward, it's very true that most people don't have any clue how much they should be saving to reach their goals. What disturbs me is that many people don't have an idea how to even think about it. I posted this on the old board, maybe it's appropriate for this thread as well:

Here's something to get you thinking about retirement goals and how to get there (and why it's appropriate to think in $/cash flow terms instead of %).

These calculations can be done pretty easily on any financial calculator that performs time value of money calculations.

A. Calculate your retirement needs in first year of retirement (present dollars).

Use an annual inflation adjustment of 2.5% (or 3.5 or 5, just using 2.5% to show the math). Let's say you are currently 30 years old and plan to retire at age 60. You estimate that you will earn 10% a year on your investments until retirement. During retirement, you expect to earn 6% annually on your investments. You anticipate a 25% tax rate during retirement.

1. Say your annual need post-retirement is $60,000 in today's dollars.
2. $60,000 with a 2.5% inflation rate for 30 years will be $125,854.
3. Considering taxes, $125,854/(1-.25) = $167,805.

B. Calculate how much you need at retirement.

1. $167,805/(.06 - .025) = $4,794,429

C. Annual contribution to get you there.

1. $4,794,429(.10)/ (1.10)^30 -1 = $29,147 annual contribution for the next 30 years.

I'm fucked... I started WAY too late, but I'm trying to catch up. I guess it also depends on your age at the time of retirement too since someone might be burning through it longer (not to mention those that live longer). It's thoughts like that, that make me think there will never be enough to put me in a comfort zone. I will never feel caught up, let alone ahead.

That's an awesome breakdown, though. Thanks Jody!

[FreightTrain]

also... being intelligent poor white trash, I realized long ago that having children was a guarantee that I would never retire.

so I got a dog

Trying to sell the wife on the same idea. Got the dog and even offered to get another dog. Still isn't working.

[slow99]

Regardless of how big your "percentage" is, Just find a minimum amount of money needed to live in relative comfort. As you progress in your career,put the excess money in retirement and savings.

Sound advice. Couple other good posts in here as well. I've edited my post...wasn't my objective to come across like a douche - but an unintended consequence.

Going forward, it's very true that most people don't have any clue how much they should be saving to reach their goals. What disturbs me is that many people don't have an idea how to even think about it. I posted this on the old board, maybe it's appropriate for this thread as well:

Here's something to get you thinking about retirement goals and how to get there (and why it's appropriate to think in $/cash flow terms instead of %).

These calculations can be done pretty easily on any financial calculator that performs time value of money calculations.

A. Calculate your retirement needs in first year of retirement (present dollars).

Use an annual inflation adjustment of 2.5% (or 3.5 or 5, just using 2.5% to show the math). Let's say you are currently 30 years old and plan to retire at age 60. You estimate that you will earn 10% a year on your investments until retirement. During retirement, you expect to earn 6% annually on your investments. You anticipate a 25% tax rate during retirement.

1. Say your annual need post-retirement is $60,000 in today's dollars.
2. $60,000 with a 2.5% inflation rate for 30 years will be $125,854.
3. Considering taxes, $125,854/(1-.25) = $167,805.

B. Calculate how much you need at retirement.

1. $167,805/(.06 - .025) = $4,794,429

C. Annual contribution to get you there.

1. $4,794,429(.10)/ (1.10)^30 -1 = $29,147 annual contribution for the next 30 years.

[white trash wagon]

also... being intelligent poor white trash, I realized long ago that having children was a guarantee that I would never retire.

so I got a dog

Excellent decision, I reached the same conclusion years ago. My next best decision was was finding a frugal, Jewish nurse for my next wife!

[Cooter]

also... being intelligent poor white trash, I realized long ago that having children was a guarantee that I would never retire.

so I got a dog

[sc281]

Regardless of how big your "percentage" is, Just find a minimum amount of money needed to live in relative comfort. As you progress in your career,put the excess money in retirement and savings.

Done.


No need for the dick measuring contest....






But since we are measuring... 26% in 401k until I max it out. Get up to 3k in Ira, and 10% in savings.

Schweeeeeen!!

[mustangguy289]

I save 150%. True Story

[Ruffdaddy]

I'm surprised at how many people don't know what the percent sign is

[thesource]

I try to put back a $100 a week in my IRA and a little here and there when I have it. Lately business has been slow so the flow of cash isn't what it usually is.