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Old 06-13-2009, 02:42 PM   #81
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I'm semi-retired and save 15% of my income. part of the reason why I work is so I can max out my ROTH.
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Old 06-13-2009, 04:06 PM   #82
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Last 3 years savings as percentage of gross salary -- 41%, 40%, 44%
Last 3 years taxes as percentage of gross salary - 30%, 32%, 37%

Will be tough to keep savings rates this high going forward given higher tax rates but that's a topic for another day . . .
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Old 06-14-2009, 12:33 PM   #83
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Quote:
Originally Posted by gryffindor View Post
Last 3 years savings as percentage of gross salary -- 41%, 40%, 44%
Last 3 years taxes as percentage of gross salary - 30%, 32%, 37%

Will be tough to keep savings rates this high going forward given higher tax rates but that's a topic for another day . . .
That seems to be a very high % of taxes. I look at ours for 2008 and get only 22.7% (You paid 14% more than we did)

I calculate this by taking gross ( before 401(k) & FSA are deducted). Then I take total taxes = Fed income + State income + SS + Medicare. Taxes/Income = 22.7%
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Old 06-14-2009, 12:50 PM   #84
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I have to admit feeling some jealousy about the high salaries listed here! Sometimes I feel like going after that, but am too lazy.

I have my TSP at 10% of my salary. Am saving my FSA and DCFSA reimbursements in a separate account and cash flowing medical/daycare expenses. I may save it, or may use it to pay off my car (5K left).
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Old 06-14-2009, 01:09 PM   #85
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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,"
My number was of gross (i.e., pre-tax) pay, as I noted.

If you include mortgage principal payments, then that puts me at about 53% of gross at the moment.

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Old 06-14-2009, 01:11 PM   #86
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We save about 32% of our gross salaries -- 20% in tax deferred (403b, 457 -- no matches) and the remaining 12% in taxable accounts.

We don't count our mandatory pension contributions (currently 5% and 6% of respective gross income) or social security as saving, nor do we count mortgage principal payments (we are prepaying so the final payoff date coincides with our projected retirement date)(currently this is about 7% of gross income)
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Old 06-14-2009, 02:04 PM   #87
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That seems to be a very high % of taxes. I look at ours for 2008 and get only 22.7% (You paid 14% more than we did)

I calculate this by taking gross ( before 401(k) & FSA are deducted). Then I take total taxes = Fed income + State income + SS + Medicare. Taxes/Income = 22.7%

Sigh. . . .

[MODERATOR EDIT]
I include Employer paid FICA, include property tax and estimate sales tax. Am in the 39.5% marginal federal tax rate and a combined state / city tax of 8.5%.

When you're a W-2 earner not much you can do to lower rates legally. The only major loophole that we found a few years ago was a conservation easement when purchasing property where we were able to write off many hundreds of thousands and preserve land.

So usually about 30% living expenses 30% taxes 40% savings. I count FICA as a tax, definitely not a savings.

[MODERATOR EDIT]
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Old 06-14-2009, 02:19 PM   #88
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Sigh. . . .

[MODERATOR EDIT]

I include Employer paid FICA, include property tax and estimate sales tax. Am in the 39.5% marginal federal tax rate and a combined state / city tax of 8.5%.

When you're a W-2 earner not much you can do to lower rates legally. The only major loophole that we found a few years ago was a conservation easement when purchasing property where we were able to write off many hundreds of thousands and preserve land.

So usually about 30% living expenses 30% taxes 40% savings. I count FICA as a tax, definitely not a savings.

[MODERATOR EDIT]
I did include FICA - called it SS in my post - and also included my state income tax of 6% so I guess the main difference between the 2 of us is that I didn't estimate sales taxes.

Also, the highest federal tax bracket in 2008 was 35% for taxable income over $357K. (I was in the 33% bracket in 2008).
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Old 06-14-2009, 03:18 PM   #89
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I did include FICA - called it SS in my post.
Fair enough -- question is whether you included it as a 7.65% rate or 15.3%. Even though the employer paid portion is not visible on the W2, I capture it as 15.3%.

You are also right about 35% highest visible marginal tax rate. I misspoke. Although when you look at phase outs of deductions and the AMT I wonder whether the "effective" federal marginal tax rate is higher than 35%.
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Old 06-14-2009, 03:34 PM   #90
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You are also right about 35% highest visible marginal tax rate. I misspoke. Although when you look at phase outs of deductions and the AMT I wonder whether the "effective" federal marginal tax rate is higher than 35%.
I am with you. Considering AMT, the "effective" tax rate is higher than the published one.
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Old 06-14-2009, 04:05 PM   #91
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Whee! Just ran my percentages based on my gross taxable income:

1) Cash & MM -- 41.6% (emergency, vacation, and car fund)
2) Retirement (TSP & Def'd Comp-NO match) -- 39.2% (and I just hit my 09 limit - it's only June!)
3) Investment (meaning incomes goes into taxable account) -- 19%
4) Kids education (429 plans...) -- none, no kiddies

My numbers look goofy because I have been on active duty, and have been living off my tax-exempt allowances The actual dollar amounts are not as high as many here, but the percentages make me feel wonderful!
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Old 06-16-2009, 08:54 PM   #92
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wow, there are a ton of high achievers here. I am disappointed in myself. However, I didn't see anyone here actual saves all 100% of their earning last year, meaning just living off their existing dividends and stuffs the rest in the pillows somewhere.
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Old 06-17-2009, 06:57 AM   #93
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wow, there are a ton of high achievers here. I am disappointed in myself. However, I didn't see anyone here actual saves all 100% of their earning last year, meaning just living off their existing dividends and stuffs the rest in the pillows somewhere.
When you put it that way, I lived on an amount equal to my dividends last year (well, $194 more for the whole year)*. I just didn't take it out of Vanguard, since I am still working. I took it out of my salary.

So, that didn't result in my saving 100% of my salary. I saved the dividends in my portfolio at Vanguard, which dropped like a rock despite that fact. You can't win.

*Not counting $10,000 for my daughter's wedding, an expense that I will only pay one time in her life.
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Old 06-17-2009, 08:03 AM   #94
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First my reply to the initial question:

1) Cash - 5%
2) 401K - 15% + 8% match
3) Investment house 11%
4) Kids grown but try to put in about 3% to roth IRA for them

Not to get too mushy, but need to consider 5-10% for charity also.
It is also an investment.

-----------------------------------

now to my questions:
1) How many that have retired don't save any more ?
I plan to keep some saving in retirement for emergencies and
for big ticket purchases and just cause I don't think I want
to stop.

2) Is the savings listed only for retirement ? I have savings
for big ticket items like when I need to replace a car, when
we want to take splurge vacation, or project on the house.

Thanks for the postings. Now I feel bad I'm not saving enough
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Old 06-17-2009, 08:11 AM   #95
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My retirement experience is less than one year. I still save, in a way, but the meaning of saving has changed. My tax refund plus a couple of other extra earnings was equal to about two months expenses so I didnít withdraw from PF for two months, that money is treated as rainy day or fun savings.

I received a small pension/annuity and opted for a 10-year payout at a higher rate than life payout. I literally put the difference into a separate savings account, perhaps to extend the idea of getting that pension.

Iím thinking about paying back social security at say, age 70, to get the higher payout. In a way, that works as a savings idea(?).

I will also try to find ways of paying less in taxes which is a form of savings.

Saving has been a lifetime habit and now I try to spend almost all of the 4% planned but there is still those two months withheld from PF, the difference from the pension, and left-over money sitting in my checking account. This doesnít strike me as much of a problem.
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Old 06-17-2009, 11:48 AM   #96
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I dont save anymore. I use to with my other company when I put in a percentage of may salary and they would match it.

I figured it would take too long to save enough money and then be comfortable to withdraw as needed.

I don't have a high paying job and my wife has not work in 4 years. We have two kids. Still I will be able to call it quit before I am 40 years old, if I decide to chose it.
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Old 06-17-2009, 06:55 PM   #97
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I dont save anymore. I use to with my other company when I put in a percentage of may salary and they would match it.

I figured it would take too long to save enough money and then be comfortable to withdraw as needed.

I don't have a high paying job and my wife has not work in 4 years. We have two kids. Still I will be able to call it quit before I am 40 years old, if I decide to chose it.
VT74,

You sound very confident, as well as kind of different from the usual poster on this forum. Would you mind enlightening us a little more on your situation, and how you would manage to FIRE before 40?
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Old 06-17-2009, 06:59 PM   #98
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Amethyst, check out vt74's into thread: slum lording
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