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retirement investment

Posted on 5/2/12 at 4:01 pm
Posted by SST
Red Stick
Member since Jul 2007
129 posts
Posted on 5/2/12 at 4:01 pm
quick question: roughly what percentage of your income goes to some sort of retirement account?
SIAP like this.

thanks
Posted by The Easter Bunny
Santa Barbara
Member since Jan 2005
45664 posts
Posted on 5/2/12 at 4:38 pm to
We're up to close to 25% right now, I think,

Of pre tax income
This post was edited on 5/2/12 at 4:39 pm
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 5/2/12 at 4:47 pm to
~13%

ETA: That's maxing out ROTH IRA and putting the max in to get the company match.

My total savings rate is in the 30-35% of net income range, as I am saving to buy a house.
This post was edited on 5/3/12 at 4:28 pm
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26747 posts
Posted on 5/2/12 at 4:53 pm to
15%
Posted by Fat Bastard
alter hunter
Member since Mar 2009
91452 posts
Posted on 5/2/12 at 5:05 pm to
0%.....I am working til I die anyways so why worry about retirement?

I am using it all on hookers, blow, and dinars

Posted by TigerDeBaiter
Member since Dec 2010
10736 posts
Posted on 5/2/12 at 5:19 pm to
Currently right under 15%, I'd like to be at 20-25% though.
Posted by fishfighter
RIP
Member since Apr 2008
40026 posts
Posted on 5/2/12 at 6:18 pm to
Once I finished with the kids school, I was up to 25%.
Posted by saderade
America's City
Member since Jul 2005
26414 posts
Posted on 5/2/12 at 7:49 pm to
Currently only 6% but I am saving up lots of money to buy a house.
Posted by Jason9782003
Member since Aug 2007
3738 posts
Posted on 5/3/12 at 9:07 am to
Was saving around 22% before I got married. Now I'm down to around 15%.
Posted by CoolHand
Member since Dec 2011
2113 posts
Posted on 5/3/12 at 10:14 am to
16% pretax
Posted by PlanoPrivateer
Frisco, TX
Member since Jan 2004
2973 posts
Posted on 5/3/12 at 3:04 pm to
A little more than 25% not counting 401k match with most coming from my wife’s salary. Having the children complete college and moving those former costs to savings helped out tremendously.
Posted by Teddy Ruxpin
Member since Oct 2006
40892 posts
Posted on 5/3/12 at 3:54 pm to
I'm shooting for 13% of pretax income because that maxes out the two tax sheltered options I have right now until I qualify for the 401k.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
139597 posts
Posted on 5/3/12 at 5:18 pm to
quote:

quick question: roughly what percentage of your income goes to some sort of retirement account?
Highly individualized question. i.e., in the scenario of an anticipated $10M inheritance, the appropriate answer might well be zero. OTOH, in the anticipated circumstance of a disabled child/spouse (i.e., Huntington's Chorea), that amount might be huge.

Here's a suggestion:
(1) Make some personal assumptions (i. e., How much do I need for retirement . . . . and perhaps, how much do I "want" for retirement)
(2) Look at the amount in #1 two ways (a) as an income bearing account at 3-5% on retirement, or (b) as an account that will generate some amount of interest (your choice of amount) +decay over time and zero-out at your anticipated age of death (again highly individualized)

Most folks use #2(b)

Determine what you need to put back annually (on average and as an average of your anticipated income as you're promoted over the years) to attain your goal assuming reasonable growth rates of savings along the way.

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