What % of your gross income do you save and/or invest?

2) gold.
/thread

For some more serious answers, I max out my 401k pre-tax allowable (too lazy to calculate the gross income % vs tax bracket changes), and I'm building up my emergency fund at about 10% of gross.

After I solidify my emergency fund of 3 months salary, I plan on maxing out my Roth IRA.

Mind you, I'm still very young and early in my career, so I still spend way too much money on useless shite.

quote:

---

After I solidify my emergency fund of 3 months salary, I plan on maxing out my Roth IRA.

---

Go ahead and max it now. You can withdraw contributions later if an emergency crops up.

I max my 401(k), my Roth and my HSA (which is essentially like an extra IRA). Anything beyond that I spend on hookers and blow.

quote:

---

Party like there is no tomorrow. . . . .

This is not a recipe for getting rich or investment advice.

---

NSS.

quote:

---

I'm curious and wanted to benchmark how much fellow MB readers save in cash, retirement or other investments as a % of annual income.

---

About 30% of gross. I'm hoping it will pay off eventually with an early retirement. Current plan is to retire at 55 and teach for another 10 or so years or until I get bored with it. :fingerscrossed:

The first question is not what % you save now, but how old you are. For the <30 set, it is not unusual to save 10% or even less. In your 30s, you should be moving that number up. Financial planners will tell you that your 40s and 50s are the big years for savings because the kids eventually leave and you have more disposable income. There is no one set % for all stages of life.

The second question is, of course, how much you're making. When you have that figure and how many more years you have to earn, then you just decide what you need to retire, and that's how you figure out whether you're on the right track for you.

For me, I started with 6% into the 401k, then moved to maxing out by 30 and have ever since. Saved 3 months of take home pay before 30, then increased the emergency account to more later. Started investing before 30, then increased investments as income increased.

It's different for everyone, but a good financial planner should be able to tell you how much you need to put back to be where you want to be by the time you want to get there. Good luck.

I'll just say that I'm 25 and see TheHiddenFlask's sig quote.

What is 0 divided by 0?

That's my answer.

I'm pretty sure it's an indeterminate form.

quote:

---

The plan is to max matching 401(k), make an emergency fund in a savings account/checkings, and then put the remainder in a Roth IRA.

---

I have no comment on your plan, except to say that any savings is a good thing. I have never been eligible for any ROTH anything since it became an option, so I have no idea what it's about.

Matching in the 401k is a good thing, but you shouldn't limit you contribution to the match amount. The thing about the 401k is that you can't touch it. Even when it was tough, I was maxing out on the 401k contribution. Not a year after I graduated, but within 6 years. The whole point of what I was trying to say above is that saving as much as you can early will pay off later. It's sometimes hard to swallow, but when you feel real financial independence, it is a really great feeling.

I feel like the budget I have made for myself still allows me to live a great lifestyle, so I am really happy about being able to save.

What is the limit contributions you can make to a 401(k) each year?

I plan on putting in the maximum ($5000) into a Roth IRA.