re: 401k averages? Saving too much or too little?

I would say you're WELL ahead of your peer group in savings. Your discipline to saving should be commended as well as your thankfulness noted with 'being lucky' with the help from your parents.

I was very vigilant with my savings similar to this when I was your age, but I didn't really budget for fun things like destination vacations and other indulgences. I do now because, although I want to be set up in retirement, I don't want to be miserable through my young years making that trek. Not sure if you allocate that into your budget, but you should.

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I am a single 27 year old

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THIS is probably the BEST thing you have going for your wealth accumulation. Trust me.

"If you chase money, you'll always have women. If you chase women, you'll never have money."

Currently only contributing 5% of income, maxing my ROTH.

I'm about to up my contribution to 15-20% for the rest of the year to bring down our AGI so we can hopefully deduct some of her student loan interest.

Is there an easy online calculator to see tax benefits from increased 401k contributions? Also to see how it affects the paycheck total?

I am basically in the same situation as you. I'm 28 now. Had some money available to me when I graduated. Also had the chance to live rent free for almost two years. I put 20% down on a house and could afford an engagement ring. 4 years later, I'm making double my salary, but I'm strapped down by life. I feel like my wheels are spinning sometimes in regards to saving. It's not as easy with two car notes, a house note, etc.

I do max out my 401k with an additional 9% company match of my salary. Plus I save 10% in addition, so I'm not throwing money away, but it's crazy how fast your money goes away. Have a kid on the way and my biggest fear is my wife not going back to work and having to dip into those 401k contributions. The thought of regressing is unsettling.

VABuckeye,

Isnt for 2014 the total 52k plus you grandpa catch up? So 57.5k for you this year?

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do not advise anyone save more than what you can receive as a maximum matching contribution. Saving 17500 in tax delayed account without having adequate liquidity, insurance, and consumer debt control is not a wise move.

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So meeting the 3 financial conditions you mentioned above are met , is the only time to max out (25% of income) ones 401k?

Or are you always cautious about doing it?


My company only matches 50% of the initial 6% of my contributions(pretty crappy compared to others I know).

Maxing out I'll advised in my case?(I Meet the 3 financial criteria you mention)