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View Poll Results: What %age of household gross income do you save per year? include pre & post tax
1-5% 6 3.11%
6-10% 5 2.59%
11-15% 9 4.66%
16-20% 14 7.25%
21-25% 21 10.88%
26-30% 26 13.47%
31-35% 22 11.40%
36-40% 17 8.81%
41%+ 73 37.82%
Voters: 193. You may not vote on this poll

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Old 05-17-2012, 04:27 AM   #21
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between 45 - 55% - no mortgage/car payment helps
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Old 05-17-2012, 05:30 AM   #22
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Quote:
Originally Posted by audreyh1 View Post
A lot of folks on the forum are retired, and we generally don't save anymore. At most, we might allow some funds to accumulate for a one-off purchase or splurge - this being a short-term thing. But once retired, one usually doesn't save for retirement anymore.
This is our case as well, although DW insists she still saves a great deal - by buying things on sale.

When we were in the work phase our saving was never less than 15% and probably averaged 25% - 30%.
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Old 05-17-2012, 06:36 AM   #23
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I'm saving roughly 40%. I hit the 36%-40% button.

We live on about 45% of my gross, save about 40% and the other 15% is taxes (income, SS & medicare). This year I stopped contributing to the company's SERP plan so I'm saving more after tax but I am also increasing my income taxes to do it. Last year I saved over 50% with 25% of my gross going into the SERP.

I do wonder why I'm saving or working at all. The stock market moves in a typical year several times more than what I save. My savings have very little impact on changing my net worth.
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Old 05-17-2012, 06:37 AM   #24
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Before the move to WV at the peak we were saving 47% of gross, now we're saving ~60% of the net income from my current job. I do not participate in the 401k at work because the company's finances are a mess, they're currently in bankruptcy, and frankly I want my finances as far away from them as I can keep it.
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Old 05-17-2012, 06:45 AM   #25
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Currently 51%. Includes maxing out 401, ira, hsa, and additional savings.
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Old 05-17-2012, 08:08 AM   #26
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Even though I am already ERed, I still calculate a percent saved based on my investment income (mostly dividends and interest but includes some cap gains distributions) and my expenses. For 2010 it was 47% and for 2011 it was 51%.

In my working years my % saved did not vary as much as I thought despite my twice voluntarily cutting my salary to reduce my weekly work hours. In the two years I was working FT after I paid off my mortgage, it was in the high 50s. For the next several years, it fluctuated more because investment income became a larger share of my total income but was still between 40% and 60%. (The year I bought a new car it dropped to 18%.) The year I cashed out my company stock it and ERed jumped to 91%!
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Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

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Old 05-17-2012, 08:10 AM   #27
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Yes, seeing the survey is motivating. Based on my monthly asset builders and 401k contributions, I am saving about 35%. But I should be saving more being this close to retirement,and so I am going to do something about it!!!
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Old 05-17-2012, 08:32 AM   #28
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About 75% of gross this year. Counting paying down student loans as saving as well. Bit more than usual because it's only a partial earning year but I'm still maxing the 401k, which defers nearly 50% by itself. Still plan on saving 62.4-67% for the years after that, but never will reach the 70's due to taxes.
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Old 05-17-2012, 08:51 AM   #29
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If you count just savings we save 26%. That's $22.5k into my 401k. $6k into hubbies IRA, $10K split between the boys' 529's and some extra into taxable accounts.

Not included is the company match on my 401k. It's 4% of my salary. The question was how much we're saving, not how much we're accumulating. I don't contribute that match, my employer does.

Also not included is the extra principal payments we're making on the mortgage. We pay an extra $2100/month there because we both feel more comfortable pulling the trigger on ER when we don't have a mortgage to worry about. (Reducing all our fixed costs and planned expenses while we have income to reduce it. Also plan to get new windows and replace DHs truck before we pull the trigger.) Hopefully we'll be mortgage free with a new, paid for, truck in the garage in 2 years.

If you include the extra principal - it's closer to 44%.

Even after we pull the trigger we'll still be tossing $10k/year into the 529's. So savings won't stop... sort of... it will be moving money from one account to another.
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Old 05-17-2012, 08:58 AM   #30
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We put in for my 401K + HSA + 2 Roths + a little extra into a taxable brokerage most months. That probably comes to about 1/3 of total income, give or take a bit. It probably gets close to 40% if you include the company 401K and HSA match (which I think is reasonable since both are fully vested).
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Old 05-17-2012, 09:14 AM   #31
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I max my TSP @ $22,500, which is 27% of my pay. Wife does 20% of her pay, but that contribution only amounts to around $5000 per year. Total, we do about 32% of our gross pay. I get no employer match, wife does get 5% plus profit sharing. Once I retire and we re-combine our households (currently reside seperately most of the week & pay for 2 apartments), we're going to do our best to have close to 100% of wife's income into her 401k for her remaining 3 yrs of work.

The reason we max my TSP with no employer contribution instead of her 401k is that I have much more faith in the TSP than the employer's plan long-term.
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Old 05-17-2012, 11:19 AM   #32
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Once my house was paid off, the extra money I was putting towards the principal went towards my retirement nestegg. That amount plus maxing out my TSP is easy to track/document and averaged 60% of my gross salary. I also had a Roth and taxable investments. Basically I didn't have a percentage goal, but instead saved every nickel I could find. My saving rate wasn't out of some sort of misplaced virtue, as much as facing the very grim reality of what I needed to do to attain my goal.

It was worth it, too!
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Old 05-17-2012, 07:46 PM   #33
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I haven't checked in about 6 months but up to that I've been averaging 30-35% per year of gross income.
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Old 05-17-2012, 08:57 PM   #34
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ERd but still earning more than we spend. This year, will save 20% of gross, with two kids in college. Last year, it was 33% with only one in college. Year before that, with both still in high school, it was 37%. Muni bond income has been dropping with falling rates, crimping the top line somewhat.
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Old 05-17-2012, 09:05 PM   #35
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Quote:
Originally Posted by martyb
I max my TSP @ $22,500, which is 27% of my pay. Wife does 20% of her pay, but that contribution only amounts to around $5000 per year. Total, we do about 32% of our gross pay. I get no employer match, wife does get 5% plus profit sharing. Once I retire and we re-combine our households (currently reside seperately most of the week & pay for 2 apartments), we're going to do our best to have close to 100% of wife's income into her 401k for her remaining 3 yrs of work.

The reason we max my TSP with no employer contribution instead of her 401k is that I have much more faith in the TSP than the employer's plan long-term.
Don't say her contribution is "only 5,000" every bit counts and it represents her hard work and talents. :-)
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Old 05-17-2012, 10:22 PM   #36
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About 40% of pay at work. About 30% of rental income.
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Old 05-18-2012, 07:42 AM   #37
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Ooops! Voted too low. I forgot about investments other than 403b. Some are done automatically others are done once a year. It should have been the 41+% category. I guess in a few months when I retire we will have to learn how to spend money since we can't take it with us later.

Cheers!
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Old 05-19-2012, 09:32 AM   #38
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I have scheduled for this year:
401k max of $22,500 including 1st year of Catchup contributions (~40% of Gross)
401k company match of 4%
Roth IRA Max of $6,000 (includes catch-up contributions). Funded from Savings Acct.
HSA Max of $3,100 (Single) Pre Tax from Payroll
Taxable accounts- I fund when I feel like it from the Savings Acct.

I haven't figured out the exact gross and net percentages.
I am comfortably in the 15% Tax Bracket
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Old 05-19-2012, 09:56 AM   #39
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Income taxes and mandatory deductions (including paying into my pension) take 40% of our income. (Husband's pension is fully taxed - and neither of us qualifies for SS). So, should I calculate our savings/investments based on the 60% that we can actually touch, or the original amount - which, to me, is an illusory number?

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Old 05-19-2012, 10:13 AM   #40
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Income taxes and mandatory deductions (including paying into my pension) take 40% of our income. (Husband's pension is fully taxed - and neither of us qualifies for SS). So, should I calculate our savings/investments based on the 60% that we can actually touch, or the original amount - which, to me, is an illusory number?

Amethyst
The OP can correct me if desired, but my understanding was that "gross income" means the original amount, which is indeed an illusory number for all of us.
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