You can also start a Roth IRA on top of your work savings. You wouldn't have to fund it to the maximum, but just set it up incrementally and put a moderate per paycheck amount in. What I did for a long time, to max out savings, was put all raises and bonuses to retirement. Less painful than belt tightening.

It all depends on when you want to retire, how much you will want to live on when you retire, and what your other sources of income will be.

Anonymous wrote:

Anonymous wrote:My wife's work only matched 3% but she took full advantage of it (along with adding her portion, not sure how much) and with a similar salary, over 5 years, amassed $100k. I was really impressed. So don't discount the 3%!

OP here, geez, that's awesome! Does she have to pay bills from her salary though? After I help pay our mortgage and other monthly bills, I definitely wouldn't have enough left over to put in even close to the amount she must have been able to. Awesome though!

lol, I've been contributing to my 401K since 2001 (as soon as a 401K option was made available to me. At that time, my salary was about $30,000/year), so it's taken me over a decade to amass my $100,000.

She's not the primary breadwinner but we did rely on her for certain bills. She put in 7-8% the first few years and 15% the last few. It was managed through JP morgan. I was also blown away because I've been putting in to my 401k (w no match) for 11 years and only have $150k so was surprised to see how much the 3% really helped. She's a SAHM now so were adjusting a bit.
I'm also not financially savvy so the benefit of these accounts for us is the income is taken away before it gets to our bank account, forcing us to live as if we weren't getting paid that extra $.

I think you have to look at what percentage of your income are you saving for retirement. If it's 20%, up it to 25%.
Try to increase the percentage each year, thought it can be hard at times. If you don't have a spouse, partner or any exe-spouses, and no children, it's easier to save.

If you do an automatic transer pre-tax, it's easier. If you don't see the money, you won't use it. Driving a reliable old car (if you need one) helps. Moving to the suburb might help. Re-evaluate all the insurances you have help save some money.

But, you don't want to save so much that you are not enjoying life. That's how I see it.

Anonymous wrote:My wife's work only matched 3% but she took full advantage of it (along with adding her portion, not sure how much) and with a similar salary, over 5 years, amassed $100k. I was really impressed. So don't discount the 3%!

OP here, geez, that's awesome! Does she have to pay bills from her salary though? After I help pay our mortgage and other monthly bills, I definitely wouldn't have enough left over to put in even close to the amount she must have been able to. Awesome though!

lol, I've been contributing to my 401K since 2001 (as soon as a 401K option was made available to me. At that time, my salary was about $30,000/year), so it's taken me over a decade to amass my $100,000.

I think that's really good on your salary.

Anonymous wrote:My wife's work only matched 3% but she took full advantage of it (along with adding her portion, not sure how much) and with a similar salary, over 5 years, amassed $100k. I was really impressed. So don't discount the 3%!

She must have put in a high percentage of her salary to get that amount in so few years (?)

Aim for 10% if you can afford it.

Anonymous wrote:

Anonymous wrote:I think you're on track. Fidelity recommends you have 1x your salary by age 35, so you beat that. Then 3x by 45, 5x by 55, etc.

How much do you contribute annually to your 401K? Do you get a match?

Thanks! You've made me feel much better! I'm not sure exactly how much I put in per year, I'll have to check. My work does match, but only up to 3%

Well, you don't even have to think about the first 3% - always take the free money.
The various online calculators will give you numbers between 5% and 15% for retirement savings rates.

My wife's work only matched 3% but she took full advantage of it (along with adding her portion, not sure how much) and with a similar salary, over 5 years, amassed $100k. I was really impressed. So don't discount the 3%!

Anonymous wrote:I think you're on track. Fidelity recommends you have 1x your salary by age 35, so you beat that. Then 3x by 45, 5x by 55, etc.

How much do you contribute annually to your 401K? Do you get a match?

Thanks! You've made me feel much better! I'm not sure exactly how much I put in per year, I'll have to check. My work does match, but only up to 3%

I think you're on track. Fidelity recommends you have 1x your salary by age 35, so you beat that. Then 3x by 45, 5x by 55, etc.

How much do you contribute annually to your 401K? Do you get a match?

I'm 37 and just broke $100,000.00 in my 401K. I make $62,000/year. How much should I have in there? I feel like I should be putting way more in, but I just can't do it and still be able to pay my bills. Living in DC is so expensive, I so regret moving here.