(Closed) How much do you contribute to your 401k or retirement?

posted 10 years ago in Money
  • poll: What percentage of your paycheck goes towards your retirement?

    None

    1-2%

    3-4%

    5-6%

    7-8%

    9-10%

    11-12%

    13-14%

    15-16%

  • Post # 17
    Member
    375 posts
    Helper bee
    • Wedding: October 2011

    I am 27 and contribute about 22% of my salary (none for bonuses, since my salary maxes it out). I used to only contribute 8%, but did a mock 2011 tax return when I knew we’d be filing married (I am a CPA), and realized I could contribute 22% and still have my paycheck within $100 of what it was when I had my “Single” withholding set up.

    If you want to get your savings rate up, I recommend upping it by 1-2% every month or two until you get up to your goal amount. It’s a lot easier when you make it gradual.

    Post # 18
    Member
    2818 posts
    Sugar bee
    • Wedding: December 2012

    I’m 23 and I contribute 6%, because that is the max amount my employer matches. I also put $5000 each year in my personal IRA. I’ve been contributing since I was 18 and started working. The additional $5000 that I contribute each year goes into my investment IRA which has more investment options then my 401k does, this is the reason I chose this option.

    Post # 19
    Member
    4883 posts
    Honey bee
    • Wedding: May 2012

    First corporate job age 22-25:  25% (I lived at home and didn’t have many bills!)

    Second/third corporate job age 25-29: 6% (with corporate match)

    Current job – self employed:  0% for now until my business gets a little more established.  Next year I’ll roll my 401ks into a Roth and start feeding that little machine.  🙂

    Post # 21
    Member
    13094 posts
    Honey Beekeeper
    • Wedding: July 2010

    I contribute 4% and my employeer matches another 3%.  DH contributes 8% and his employeer matches another 5% or 6%.  I definitely agree with the PPs who said that it is SO beneficial to start young and take advantage of the compounding over the years.  You end up so much better off.

    I also have separate mutual funds and a Roth IRA that I have had since late middle school (probably age 14 or so) that I contribute to when we have extra money to save for longer term.  I usually do a single lump contribution a year.  Eventually (probably once DH and I buy a house), I’ll start automatic monthly contributions to these accounts.

    DH and I also both take part in our company stock programs (money pulled out of each paycheck and then once a year can buy stock at a discounted price).  I currently have over $6000 in company stock.  I’m not sure how much DH’s stock is currently worth.

    We are 24 and 25.

    Post # 22
    Member
    5839 posts
    Bee Keeper
    • Wedding: May 2011

    7% + 5% employer match. Although looking at it the last month or so is depressing. I think my net return since inception is negative.

    Post # 23
    Member
    1508 posts
    Bumble bee
    • Wedding: October 2009

    I’m 38

    I contribute 15%.

    Employer matches 7.5% of my salary once a year in a lump sum. If you leave before that date you lose the whole year’s contribution.  It takes two years to get the employer match and you are 100% vested at that point.

     

    Vesting time frames can be important.

    Post # 24
    Member
    3798 posts
    Honey bee
    • Wedding: June 2012

    I have a retirement account that my employer takes a % out of my check and holds for me, and then if I decide to leave I transfer it into an account of my choice. I also have my own account that I started on the side through Nationwide and I put $20 a paycheck into it. I don’t know how much money is in the work account, but in my personal account I have over $2000 and I’ve been there 1.5yrs. I am 24, and on my 25th birthday I am going to up the amount to $25 a check and keep increasing each year by $5.

    Post # 25
    Member
    893 posts
    Busy bee
    • Wedding: May 2013

    At my old job, I contribute 10% because I figured that it will be easier for me when I’m younger to jumpstart my 401k  vs. when I get married, have kids, etc.  More responsibilities, less money to be able to contribute.  Right now at my new job, I’m not eligible for a 401k so I have a Roth IRA that I’m maxing out and I’m going to continue contributing 10% when I’m finally eligible.

    I’m 28

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