OT - How much should your 401k be

[inkman]

So as I enter my 30th year of employment, I'm beginning to think more and more about retirement. What should my 401k balance be?

 

Under 100k

100-200k

Over 200k

 

Discuss

Edited October 6, 2016 by inkman

[SwampD]

So as I enter my 30th year of employment, I'm beginning to think more and more about retirement. What should my 401k balance be?

 

Under 100k

100-200k

Over 200k

 

Discuss

Do you also have a pension? If not, well over.

Unless you are a smoker. Then you're fine.

[WildCard]

I invest 25% between a 401k and two Roth's. Some go to savings, and the rest is bills and fun. Then again, I'm 23 with no kids, and I bought my cell phone and car outright, so my bills are likely much different

Edited October 6, 2016 by WildCard

[SDS]

So as I enter my 30th year of employment, I'm beginning to think more and more about retirement. What should my 401k balance be?

 

Under 100k

100-200k

Over 200k

 

Discuss

Obviously it depends upon what your income was for 30 years. But definitely over 200k, especially since you are married, IIRC, so that represents savings for two people.

[inkman]

I've lived a pretty unhealthy life. If I were to guess a number I'll reach, it'll probably be 75. Smoked for 20 years, drank obscenely for a decade, only occasionally ate healthy. I've been pretty irresponsible with my loot for most of my life. Still living paycheck to paycheck. I've made strides. Our company matches 50% up to 6% so I've been doing that since it was implemented. I'm pretty over my head with debt but I make do. My take home is about 1/2 my gross. I see a small light at the end of the tunnel, it's just going to take time to get there. Then I can start making real strides but it's going to take a few years to get there.

[Hoss]

I haven't started contributing to my 401k yet because I know nothing about it and haven't made the time to meet with somebody about it.

 

Should I contribute if I don't plan on staying with the company long?

[TrueBlueGED]

I haven't started contributing to my 401k yet because I know nothing about it and haven't made the time to meet with somebody about it.

 

Should I contribute if I don't plan on staying with the company long?

 

As long as you can afford it, yes. If you end up leaving you can always shift the money.

[Wyldnwoody44]

I have a very Jewish brother in law, he sets me straight.... He even has me staring funds for my unborn children lol.

 

It really depends on salary and employer match, you always take advantage of the 100% Match then weigh out the remainder in bills/loans/etc. And contribute what you can.

 

I'm in my 30's and my fear is the market taking a giant dump and all my 401k not being there when needed.

[That Aud Smell]

^

 

I'm'a keep the Political Correctness thread out of here - but damn.

[wjag]

As much as your budget can bear and no less than what the company matches.  That match is 'free' money.  To do anything less is reckless to your future.

[Claude_Verret]

As much as your budget can bear and no less than what the company matches. That match is 'free' money. To do anything less is reckless to your future.

Yes. Bare minimum company match, that's like saying no thanks to extra $ your employer is offering.

 

Not understanding investment options shouldn't stop you from contributing either, most plans offer a money market option so you can just park your $ there until you figure out what to do. A very general rule of thumb is to invest your age in bonds. So if your 25, 25% bonds, 75% equities. Starting while you're young is huge.

[jsb]

Well I guess if you're entering your 30th year of employment your somewhere between 50 and my age. If closer to 50 you should have at least 100k in your 401k. My advice would be to make a 5 year plan and get as close to ZERO debt as you can.

Depending on your companies match, you should be putting in at a minimum the amount that they will max match. Put in more. Your yearly annual increase by percentage should be what you increase your 401k by. 3% raise, a minimum of 2% increase in your 401k as an example. Less than 3% raise, put that full percentage in.

 

That may seem like a strict monetary diet, well start getting used to what you will shortly be living on when you retire. Unless you plan on working until you die, do it. Fact is no matter what your lifestyle there is no guarantee how your health will hold up as you age even further up. You may be barely holding on when your SSecurity age hits. Trust me, you won't be able to live off of that amount. Alpo and ketchup sandwiches are not a good lifestyle choice as you age up. Depending on your health luck, you'll have a few years to enjoy your stress free life in retirement, you don't want to waste that opportunity by being stuck on the front porch and watching daytime TV because you didn't make good choices now.

 

No offense meant in that post, JMO, If you don't have a hobby outside of watching the Bills and Sabres, get one, pronto. You still want to stay relatively active to keep yourself from going nuts doing nothing plus if you're like me, you may love your wife to death but 24/7 365 is not going to be good for our marriage.

Edited October 6, 2016 by jsb

[inkman]

I'm unfortunately in the first category I listed. My company just started matching 50% of what we contribute up to 6%. I also have a 401K loan, I know it's shameful but I had to clear up CC Dept. Between my contributions and the company's match, I'm hitting nearly 1k a month in contributions. My balance went from 60k to 77k just over the last 7-8 months. We also get profit sharing 401K bonus in December which should be a few grand. So I'm hoping to move into the second category mid next year.

[nfreeman]

Generally, everyone, at every age, should contribute the max amount to his/her 401-k, regardless of whether their employer matches.  There is no better deal, and no better rate of return, out there than the tax break on 401-k contributions.  It is also increasingly likely that social security benefits are going to be cut substantially over time -- so you will need your own retirement savings.

 

For single people in their 20s -- I would put close to 100% in an S&P 500 index fund and not sweat the inevitable market swings.

[Claude_Verret]

I'd strongly recommend starting here.  The Bogleheads are a indispensable resource and it's free, this stuff really isn't complicated.

 

https://www.bogleheads.org/wiki/Getting_started

 

 

[LGR4GM]

I have TIAA Creff. I put in the max and I have 50% in the guaranteed annuity and 50% in the stocks and bonds. I am young so I feel okay about this.

[Claude_Verret]

I have TIAA Creff. I put in the max and I have 50% in the guaranteed annuity and 50% in the stocks and bonds. I am young so I feel okay about this.

 

If you're young then you can handle way more risk.  You have time on your side to weather a market correction.

[Sabres Fan in NS]

I'm not sure, but I think that a 401k works pretty much the same way as an RRSP in Canada.

 

IMO, RRSP's are the biggest scam perpetrated on the Canadian public.

 

Short answer to your question, ink ... there will never be enough.

[Winston]

My company matches 50% up to 6% for my 403b, but not until I've worked there for a year. I'm only 3 months into the job, but I've been contributing my 6% anyways, just to start building my savings and get used to the take-home amount.

 

All of mine goes to an S&P 500 index fund. Thought I'd play it safe while I'm still figuring this whole finance thing out. Obviously we're not talking big money here.. I'm the new kid working for a non-profit, but hey, gotta start somewhere!

[LGR4GM]

If you're young then you can handle way more risk.  You have time on your side to weather a market correction.

I might wait til post election to add more and change the percentage going into stocks and bonds.

[That Aud Smell]

I'm not sure, but I think that a 401k works pretty much the same way as an RRSP in Canada.

 

IMO, RRSP's are the biggest scam perpetrated on the Canadian public.

 

Short answer to your question, ink ... there will never be enough.

 

:huh:

[Hank]

No pension ink? Realistically you'll probably need about 400k to be secure. You'll be working until you die. You're . Get a half mil life insurance policy for the little one.

[Claude_Verret]

I might wait til post election to add more and change the percentage going into stocks and bonds.

 

I'm a huge fan of the Boglehead way of investing, one of their basic principles is not trying to time the market.  Just offering this up as general advice to you, I obviously do not know nearly enough info about your personal situation to offer anything specific.  

 

I do think that the general principles of saving and investing should be taught in high school, it certainly would have helped me get serious about if before my early 30's.

 

Boglehead Investment Philosophy:

 

1. Develop a workable plan
2. Invest early and often
3. Never bear too much or too little risk
4. Never try to time the market
5. Use index funds when possible
6. Keep costs low
7. Diversify
8. Minimize taxes
9. Keep it simple
10. Stay the course

[spndnchz]

My advisor says I need about 5 million to retire in the lifestyle I want so....

[bob_sauve28]

Do you also have a pension? If not, well over.

Unless you are a smoker. Then you're fine.

Lol, agree with all of this! 

 

Should be as big as it can be. Then just cash out like 4% a year as extra income