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Old 06-11-2009, 06:53 PM   #61
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Great thread. I never figured it up like this before.

Cash = 1%
Retirement = 14%
Other = paid 5% towards my mortgage
Other = bought 6 rental houses = 29%

Total = 49%

My income varies so I never know how much I will earn but I'm hoping to put away/invest at least 40% this year.
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Old 06-11-2009, 07:03 PM   #62
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In the last quarter, the average American saved 5.7%, the highest in 14 years. See the enclosed chart from US Bureau of Economic Analysis, which shows only up to the 1st quarter.

The posters here save far more. But then they also make much more than the average household income. It is easier to save if your income far exceeds the typical needs, yes?

It is not to deny these posters the credit for their determination. I know people who make this kind of money, yet have little assets to show for it.
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Old 06-11-2009, 09:28 PM   #63
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Yes, I do think that the folks on this site are not the norm for sure.
This year I am saving ~63% of my salary.

Yes we are fortunate......but I do feel like this was not luck either. 32 years on the job to build up to this. A little "LBYM" helps too.
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Old 06-11-2009, 10:22 PM   #64
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Retirement $21,000 22%
Investment $17,000 17%


Still working, household income $97,000
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Old 06-11-2009, 11:15 PM   #65
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1) Cash/taxable investment - 27K
2) 401K with catch-up - 22K

38% of gross income.
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Old 06-12-2009, 09:58 AM   #66
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No debt + paid off townhome so expenses pretty low for us.

401k + 457 = 33k
Pension contribution + w/vested match = 15k ish
Taxable = approx 4k/month with dips for large expenses and April 15

So probably somewhere between 90k-96k savings per year
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Old 06-12-2009, 05:05 PM   #67
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Originally Posted by Enuff2Eat View Post
Everyone said an average American do NOT save enough. I beg the difference in this forum. There ain't nothing average about the members in this forum.

So with that said, what is your Average Saving per Year??

1) Cash
2) Retirement (401k, IRA..)
3) Investment (meaning incomes goes into taxable account)
4) Kids education (429 plans...)

% Total saving vs. % Income Earned

Income: about 42k (depending on overtime)

2009 numbers prorated:
1 cash 5k for 2010 Roth IRA contribution =5k
2 5k in Roth IRA, 15k in 401(k)=20k
3 Taxable account =5k
4 n/a =0k
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Old 06-12-2009, 06:34 PM   #68
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That's great Mill so you live on about 12k a year, good work. That it about 75% of your income that you save.
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Old 06-12-2009, 07:22 PM   #69
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Originally Posted by Calgary_Girl View Post
Based on combined gross income of $161K:1) Cash/TFSA: $26K2) RRSP's: $25K (incl. company matches of almost $14K)3) Taxable Acct: $10K4) RESP: $2500 (for 1 child but this amount will double since kid #2 is due in Dec. :-) )Not incl. employer matches on the RRSP's, we save almost 40% of our gross income. We're putting a lot in cash right now since I'll be going on maternity leave in Nov. for one year (and not sure yet if I'll be going back to work at the end of it).
Congratulations.....look forward to hearing about Calgary Baby!
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Old 06-12-2009, 08:28 PM   #70
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Last 3 years of w*rking ($75K) was saving ~50% in TSP, Roth, CDs.

Now: On 1st of month $2160 into checking (after med insurance & taxes)
I rarely spend all of it.
Occasionally have a $1000 month.

I don't feel deprived, I just don't want stuff.

I could probably spend even less if I wasn't lazy (I pay people to do yard work & house work).
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Old 06-12-2009, 09:37 PM   #71
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152k gross income last year. We saved 56k - 50k of that went towards paying off the mortgage (and we made the final payment Jan this year ). The other 6k we used to blast some credit card debt that had built up.
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Old 06-13-2009, 12:03 AM   #72
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I only make about $30k in my job. I save $6k in my 403b plan, and out of my take-home, I save about $200 per paycheck to take care of shorter-term needs (car/condo repairs/assessments, teeth needing crowns, etc.) Since the latter comes and goes but doesn't really grow, I guess that my effective savings rate is 20%. I increase my 403b contribution to match whatever raises I get. I'm hoping to have >$500k in savings when I'm 70 or so, income from which to supplement whatever Social Security stipend the future cash-strapped U.S. government will allow me to have.

I'm hoping that we get some sort of comprehensive national health-insurance plan going here in the U.S., so that I can get some relief on the hundreds I spend every month on diabetes meds and supplies.
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Old 06-13-2009, 12:09 AM   #73
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That's great Mill so you live on about 12k a year, good work. That it about 75% of your income that you save.

yea. My employer pays all expenses, so my savings could even be better, but Im trying to walk the line between save for tomorrow, but live a little today.
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Old 06-13-2009, 05:23 AM   #74
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wow! i feel like a piss poor douche bag after reading some of these responses!

I think I saved 3k in cash last year, 13k in retirement accts, and that's it....so 16k and netted only 50k or so
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Old 06-13-2009, 07:46 AM   #75
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wow! i feel like a piss poor douche bag after reading some of these responses!

I think I saved 3k in cash last year, 13k in retirement accts, and that's it....so 16k and netted only 50k or so
Thefed, does that mean you saved 16K out of 50K income? That means you saved 1/3. That's excellent LBYM results, in my opinion.

For everyone, I hate to ask the old question, but we are talking savings %age after-tax, correct?

If:
a. mortgage principal payments "count" as "savings,"
b. I get to count my automatic 7% pension contribution (I don't pay into SS),
then, we are saving half our after-tax income (which, as I previously noted, is only a little more than half our gross income).
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Old 06-13-2009, 09:29 AM   #76
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Toughest thing about retiring was NOT saving anymore. Used to save 25% (or more in good years). My official family retirement income has never exceeded $50K. Since w*rking family income was easily twice that, we take from savings now. It is painful in the extreme! It's a real surprise to me since, hey, that's what we saved it for - to spend in our old age for heavens sake!

Oddly, taking from cash accounts doesn't hurt as much. Sold old house in midwest and stuffed the cash in several "high yield" (4% heh, heh) CDs, MMs etc. Tacking cash from those seemed, well, OK I guess. But taking from an IRA for a house down payment this month really made me feel sick - I'm serious! Looking forward to selling "old" property and having a savings account again. Wish there were a way to put the proceeds back into a retirement account. It would be safer (from us) there.

Sorry to hijack the thread, but this could be an interesting topic. How do you transition from saving to spending - and not go completely insane? Retired people want to know
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Old 06-13-2009, 09:37 AM   #77
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Looking back at 2008, it looks like contributions to savings, retirement accounts and my HSA were about 1/3 of our gross income. If you include the company matches in my 401K and HSA, it rises to nearly 40%.

That will probably go down a little bit this year now that we're about to be DINKS again. I suspect a negative savings rate this year in my savings accounts (mostly the emergency fund) as we feel more comfortable drawing this down somewhat for household projects now. Still maxing out all the other tax-deferred options, though.
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Old 06-13-2009, 09:38 AM   #78
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Retired two years, but still maxing out my deductible IRA ($6K) while DW still works.

In the 7 years before I retired, I used to save about 40% in my 401(k). My employer allowed after tax contributions once the pretax ceiling was hit. I think I can roll this after tax portion over to a Roth next year.
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Old 06-13-2009, 11:10 AM   #79
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Sorry to hijack the thread, but this could be an interesting topic. How do you transition from saving to spending - and not go completely insane? Retired people want to know
It is something I've thought about a lot as we expect to RE very soon. My plan is to treat the money from pensions and SS plus the 3% SWR from retirement accounts as our annual income and then save from that income into CD's or whatever to fund new cars, vacations etc.

Without the need to save for retirement I'm hoping we will be able splash out more on things we want, particularly sports and travel. As you point out we'll have to effect a mind change, unless major events happen such as loss of pension, long economic recessions, other major expense events.....
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Old 06-13-2009, 12:16 PM   #80
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Originally Posted by Amethyst View Post
For everyone, I hate to ask the old question, but we are talking savings %age after-tax, correct?

If:
a. mortgage principal payments "count" as "savings,"
b. I get to count my automatic 7% pension contribution (I don't pay into SS),
then, we are saving half our after-tax income (which, as I previously noted, is only a little more than half our gross income).
Are talking savings %age after-tax, correct? - I take total of my savings - 401(k) + non-deductible IRA's + other savings divided by after tax take home pay, so I guess I am a bit of a mix as the 401(k) is before tax money and the rest is after tax money.

mortgage principal payments "count" as "savings," - yes, while I was paying down mortgage with extra principal payments I always counted it as savings.

I get to count my automatic 7% pension contribution (I don't pay into SS) - I have not been counting my SS (FICA) payments as I have no choice, but it is an investment I suppose. My previous company had a voluntary employee contribution pension plan and I certainly would count that as savings.
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