How much should I be saving for retirement?

[Anonymous]

Anonymous wrote:But what if that Latte gave you just the pick-me-up you needed to make a super excellent point during a meeting, catch the attention of the boss, and put you in line for a raise?? That $4 would have actually made you money

What if the latte had an Ebola Marbrug hybrid virus on the rim and you bleed to death out of your orifices ?

[Anonymous]

Anonymous wrote:

Anonymous wrote:But what if that Latte gave you just the pick-me-up you needed to make a super excellent point during a meeting, catch the attention of the boss, and put you in line for a raise?? That $4 would have actually made you money

What if the latte had an Ebola Marbrug hybrid virus on the rim and you bleed to death out of your orifices ? V

Well, in that case, no retirement money is needed. Win/win!

[Anonymous]

As much as you can without making yourself miserable in the here and now, or without making yourself a burden on your kids in the future.

[Anonymous]

Anonymous wrote:But what if that Latte gave you just the pick-me-up you needed to make a super excellent point during a meeting, catch the attention of the boss, and put you in line for a raise?? That $4 would have actually made you money

Yeah, but you could have just as easily gotten the $1 cup of coffee at Dunkin DOnuts, 7-11 or McDonald's, save $3 and still made $20 or so. The rule of 72 doesn't have to apply on "Buy vs don't buy" but can also be applied on "buy expensive vs buy cheap"

[Anonymous]

Anonymous wrote:I am 29 and my parents did not know a thing about retirement savings and financial planning. At 19/20, I had a coworker who pleaded with me to start saving for retirement now because of how far ahead I would be, but I felt like retirement was so far away that I'd already be a millionaire by then (after all, I had PLENTY of time to figure it out lol). Around 23, his advice started to sink in and I began with $50 a month on 28K a year.

This is why I tell everyone who will listen to save for their kid's retirement before they save for college. If you sock away enough money that you can max out your kids in Roth IRAs to the extent their income allows at, say, 15 or 16 you will be doing them an immense service. That money can be used for college, yet is not accounted for by FAFSA. If they end up not needing that money for college, they can take out 10k for their first house. If they can let it ride til their 60- compounding FTW!

[Anonymous]

Anonymous wrote:I am 28 and am literally JUST now starting to save for retirement. I can not wrap my head around the fact that I wasn't privy to all the seemingly apparent suggestions for saving as soon as you can.
It is killing me seeing those charts where if you started saving at age 18, compound interest, etc-- you'd have hundreds of thousands of dollars. How did I not know this? How did my parents (who are otherwise amazing, smart people) not spend even an hour discussing these things with me? Or a teacher? Anyone? Bueller?

Sigh...... anyways, am I screwed? I am just starting my first "real" job and making around $40k. I have lots of bills at the moment but believe I can put away 10% into my newly available 401k- employer will match 3%, so if I can contribute 7%, I'll be putting away 10%-- 7% is a stretch for me financially but I will make it work.

This is a big problem. I force all my younger employees to save at least 5% so we match the 4%. They hate it. They are like I need that $40. I say...NO YOU DON'T. I fucked up bad. I just started saving at 35. I tell all the kids working for me...YOU NEED TO GET A PART TIME JOB IF YOU CAN'T SPARE $40 a week. If you are making $40K in DC, you should be working as a server, bartender or something else. I worked in adams morgan as a bartender for 5 years from 23 to 28.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am 29 and my parents did not know a thing about retirement savings and financial planning. At 19/20, I had a coworker who pleaded with me to start saving for retirement now because of how far ahead I would be, but I felt like retirement was so far away that I'd already be a millionaire by then (after all, I had PLENTY of time to figure it out lol). Around 23, his advice started to sink in and I began with $50 a month on 28K a year.

This is why I tell everyone who will listen to save for their kid's retirement before they save for college. If you sock away enough money that you can max out your kids in Roth IRAs to the extent their income allows at, say, 15 or 16 you will be doing them an immense service. That money can be used for college, yet is not accounted for by FAFSA. If they end up not needing that money for college, they can take out 10k for their first house. If they can let it ride til their 60- compounding FTW!

I am doing this thanks to this website. While there are a lot of pessimistic assholes on this site...There are some smart fucking people.

I have shared this with a couple of my friends who are starting to save now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are supposed to have 1x salary in retirement savings by age 30 and 2x by age 35 to be on track

So you're saying if you even hit the first milestone, you basically need to be saving almost 20% of your salary between ages 30 and 35? I think it's really hard for most people to do that. I've only got 1/3 of my salary saved at 29, but I also spent 2 years in grad school. I'm saving 10% of a government salary.

PP is wrong - it isn't 2x by age 35. It's 1x by 35.

http://bucks.blogs.nytimes.com/2012/09/12/suggested-retirement-savings-goals-by-age/

[Anonymous]

!

I am doing this thanks to this website. While there are a lot of pessimistic assholes on this site...There are some smart fucking people.

I have shared this with a couple of my friends who are starting to save now.



WOW, This is how you thanks people who gave you advice? You are such smart ass, why are you asking for advice?

[Anonymous]

Anonymous wrote:I am 28 and am literally JUST now starting to save for retirement. I can not wrap my head around the fact that I wasn't privy to all the seemingly apparent suggestions for saving as soon as you can.
It is killing me seeing those charts where if you started saving at age 18, compound interest, etc-- you'd have hundreds of thousands of dollars. How did I not know this? How did my parents (who are otherwise amazing, smart people) not spend even an hour discussing these things with me? Or a teacher? Anyone? Bueller?

Sigh...... anyways, am I screwed? I am just starting my first "real" job and making around $40k. I have lots of bills at the moment but believe I can put away 10% into my newly available 401k- employer will match 3%, so if I can contribute 7%, I'll be putting away 10%-- 7% is a stretch for me financially but I will make it work.

You will be fine -- 28's not too late to start. Just keep up the good work!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are supposed to have 1x salary in retirement savings by age 30 and 2x by age 35 to be on track

So you're saying if you even hit the first milestone, you basically need to be saving almost 20% of your salary between ages 30 and 35? I think it's really hard for most people to do that. I've only got 1/3 of my salary saved at 29, but I also spent 2 years in grad school. I'm saving 10% of a government salary.

PP is wrong - it isn't 2x by age 35. It's 1x by 35.

http://bucks.blogs.nytimes.com/2012/09/12/suggested-retirement-savings-goals-by-age/

Only if you want to be poor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are supposed to have 1x salary in retirement savings by age 30 and 2x by age 35 to be on track

So you're saying if you even hit the first milestone, you basically need to be saving almost 20% of your salary between ages 30 and 35? I think it's really hard for most people to do that. I've only got 1/3 of my salary saved at 29, but I also spent 2 years in grad school. I'm saving 10% of a government salary.

PP is wrong - it isn't 2x by age 35. It's 1x by 35.

http://bucks.blogs.nytimes.com/2012/09/12/suggested-retirement-savings-goals-by-age/

Only if you want to be poor.

Look, for some of us, 1X salary saved is a big accomplishment. Not everyone is making megabucks and able to sock away massive amounts of money before 35. Sure, shoot as high as you want, but I think 1X salary is a reasonable not too incredibly difficult guideline for people to try to follow with the cost of everything else as high as it is.

Consider how many people have very little to nothing in retirement - that number depresses me more than people who have saved 1X vs. 1.5X vs. 2X salary. Anyone who is saving at all is actually ahead of the ball. You have to start somewhere.

[Anonymous]

We make ~$210K per year (two income) and have saved $1.2M for retirement (excludes house equity ($400K) and college savings ($200K)) and our two kids go to private school. We are 43 years old.

How have we done this? We have always lived below our means. We buy things off Craigslist/Yard Sales wherever possible but we do not feel deprived. We have save 25% + of our income for at least the last 15 years maybe more. We save in aftertax retirement accounts such as 401k aftertax and IRA's.

The sad thing is we don't even feel financially secure but we know we are in a better position then most. Can't wait until we get to $2M. Hopefully, we will be there in 5 years.

[Anonymous]

Anonymous wrote:
We make ~$210K per year (two income) and have saved $1.2M for retirement (excludes house equity ($400K) and college savings ($200K)) and our two kids go to private school. We are 43 years old.

How have we done this? We have always lived below our means. We buy things off Craigslist/Yard Sales wherever possible but we do not feel deprived. We have save 25% + of our income for at least the last 15 years maybe more. We save in aftertax retirement accounts such as 401k aftertax and IRA's.

The sad thing is we don't even feel financially secure but we know we are in a better position then most. Can't wait until we get to $2M. Hopefully, we will be there in 5 years.

Did you buy a house before 2004?

[Anonymous]

Yes.