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re: Do you think this is a good retirement savings rate

Posted on 1/31/13 at 1:04 pm to
Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 1/31/13 at 1:04 pm to
quote:

If one would have $250,000 in retirement savings at age 40 By age 40, should one have acquired more in their 401K, Roth IRAs to retire comfortably fairly early, let's say age 60


it depends on the indivdual and his or her income and lifestyle. you should contribute up to your 401k match and max out the Roth after.

so let's say i'm 25, I make $80,000 a year and I get a 10% match on my 401k. I'll contribute $8k to the 401k and $5500 towards the Roth. I'll have $16k total going towards the 401k and $21,500 overall going towards retirement. if i get an 8% return in each account i should have around $434k in my 401k and $149k in my Roth at age 40. so that's about 75% 401k - 25% Roth.

if your 401k match is lower your 401k percentage would be lower.

ETA: i misread your question 250k is good for 40 years old, good job. if you can get an 8% return a year until age 60 you have around $1.15 million
This post was edited on 1/31/13 at 1:07 pm
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 1/31/13 at 1:18 pm to
Article in USA Today 1/11 states: 75% of Americans nearing age 65 have less than $30,000 in retirement savings

Half of retirees will live in poverty and on food budget of $5 per day.

Only 50% of American adults have any retirement savings.

You are well on your way. If it doubles at a good rate according to the Rule of 72 (9% for 8 years, or 8% for 9 years, etc. etc.) and you keep adding more on the side - you should be OK for retirement at 67
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