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Suggested % to contribute to youy 401K?

Posted on 1/2/13 at 5:47 pm
Posted by CajunCaimen
Gulf Coast
Member since Nov 2009
891 posts
Posted on 1/2/13 at 5:47 pm
What is the "typical" percent you should try to contribute?
Posted by C
Houston
Member since Dec 2007
27845 posts
Posted on 1/2/13 at 5:50 pm to
10% is good number, but your goals in life should be the ultimate driver.
Posted by The Cable Guy
Baton Rouge
Member since Aug 2004
9692 posts
Posted on 1/2/13 at 6:31 pm to
I didn't contribute my first 3 years out of LSU around 2004-2007 since my company didn't match. Bad choice on my part but oh well.

2007-2010 I contributed 6-8%
2010-Present. 8% for a few months, then 10% for some months then 15% for about the past 6.

I'm married with zero kids. I say put in as much as you feel you can.

Edit to add, after the 1st gig 2nd company matched 2% and the current is 3%.
This post was edited on 1/2/13 at 7:35 pm
Posted by tylercsbn9
Cypress, TX
Member since Feb 2004
65876 posts
Posted on 1/2/13 at 6:38 pm to
Right now I do 6 % and my company does an additional 4. I have been saving to build a years worth of savings and save money for my wedding. After that I plan to contribute 10%
Posted by DownSouthTiger
downsouth
Member since Jan 2005
2555 posts
Posted on 1/2/13 at 6:52 pm to
6% in 401k, company matches that amount.
Another 5% in Roth. And another $500 in savings each month, unfortunately with me getting some property ready to build a house I am going into the savings constantly. Put $20 a month for each kid in 529 college fund also.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 1/2/13 at 6:59 pm to
Screw "typical".

The correct answer is as much as you possibly can. And then a little extra.
Posted by Cold Pizza
Member since Sep 2011
7639 posts
Posted on 1/2/13 at 7:05 pm to
Yearly max which I think is $17k?
Posted by PlanoPrivateer
Frisco, TX
Member since Jan 2004
2812 posts
Posted on 1/2/13 at 7:43 pm to
If you can swing it put in 10% and increase it by 1% everytime you get a raise. Target would be 20 to 25%.
Posted by RickAstley
Reno, Nevada
Member since May 2011
2010 posts
Posted on 1/2/13 at 8:38 pm to
I'm currently allocating 6% of my salary to get receive the company match of 3%. I have not figured out any goals I have in life, but as I have learned from the board, it doesn't hurt to at least contribute to the company match for the time being while deciding long term goals.
Posted by ZZTIGERS
Member since Dec 2007
17181 posts
Posted on 1/2/13 at 8:38 pm to
My company matches $ for $ up to 9%, so that's what I contribute.
Posted by Bayou Tiger
Member since Nov 2003
3660 posts
Posted on 1/2/13 at 9:31 pm to
At this point and here forward, I only contribute what it takes to get the company match. Additional savings go elsewhere.

There is no way I won't take advantage of the free money (company match), but the outside chance of government takeover of 401k's or other penalties for people who have saved and "can afford to spread it around" keeps me wary of contributing more.
Posted by BestBanker
Member since Nov 2011
17556 posts
Posted on 1/3/13 at 8:06 am to
Do you have adequate insurance on your assets?
Do you have 6-12 months of your gross annual income saved in a liquid accout?
What is your consumer-debt load?
Age?
Company match amount?

*Remember that any of your money that you deposit into a qualified retirement plan law account will be taxed at ordinary income tax levels to be determined at that point in time.
Posted by rsande2
Member since Jan 2006
3423 posts
Posted on 1/3/13 at 8:36 am to
quote:

What is the "typical" percent you should try to contribute?


As others have said you surely want to take advantage of the company match.

Beyond that, other than the as much as possible line of thinking, I believe I read you take your salary now and multiply it by 20 and that should give you enough money for retirement.
Posted by TheWiz
Third World, LA
Member since Aug 2007
11695 posts
Posted on 1/3/13 at 9:27 am to
I'm upping mine from 10% to 15% in a week or two. Hopefully I'll have to make a big adjustment come raise time. I'm probably just being overly optimistic about recently getting my MBA.
Posted by GoCrazyAuburn
Member since Feb 2010
35020 posts
Posted on 1/3/13 at 9:51 am to
I would do up to the match limit. Do a Roth as well as you can so you can diversify taxable and non-taxable retirement income.
Posted by KG6
Member since Aug 2009
10920 posts
Posted on 1/3/13 at 3:29 pm to
I'm at 15% with a 5% company match and 4% lump sum each year. As soon as the wife's student loans are paid off, I'll be maxing it out.

I really need to get back into the habbit of contributing to a Roth IRA.
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