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Old 05-13-2011, 03:24 PM   #61
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45% of gross. Basically living off one income...........
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Old 05-13-2011, 03:41 PM   #62
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Annual salary 90K gross, Annual locked in saving amount 42K. Another 5-10K depending on vacations and travel. Single of course, no bills at all. 52 and counting the days to ER. Actually it will be exactly 1376 days.
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Old 05-13-2011, 03:46 PM   #63
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About 33% of after tax monies.
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Old 05-13-2011, 04:24 PM   #64
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About 65% of gross. Live off one income but both work and we save the higher income.
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Old 05-13-2011, 05:52 PM   #65
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Last ~4 years of employment: greater than 50%

First ~5 years of retirement: ~10%

Recently: negative; what should I be saving it for?
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Old 05-13-2011, 06:00 PM   #66
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Wow. So your income consists of pension, SS, dividends and such?

Yes, regular retirement stuff although I haven't claimed SS yet. I am not w*rking either for myself or for anybody else.
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Old 05-13-2011, 06:19 PM   #67
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Only about 20% when working but I bought/sold a few homes which resulted in a nice boost when I sold my last one. I'm saving zero now. That many change once SS kicks in.
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Old 05-13-2011, 07:15 PM   #68
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Our entertainment expenses consisted mostly of going to the park or the beach.
Yes, but most of the rest of us think that going to the beach in your neighborhood is a pretty nice vacation!
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Old 05-13-2011, 09:19 PM   #69
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Yes, but most of the rest of us think that going to the beach in your neighborhood is a pretty nice vacation!
I can vouch for that. Oahu's beaches are the best! And the water is crystal clear, the water temperature is perfect. So is the air temperature. The air humidity level is ideal. And there are so many beaches. And don't forget the surfs!

If I can find a desperate home seller, I would not mind learning home improvement the hard way at all.
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Old 05-13-2011, 09:49 PM   #70
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DontMeanAThing,

How did you calculate the saving% of Net with 401K contribution?

Thanks.
Net = Gross (containing Salary + Misc) - Taxes (containing Fed withhold, FICA, State withhold, State disability)

IRA and 401 were part of my Fixed Expenses, the category that also contained designated savings, e.g. Car Fund.

Undesignated Savings = Net - Fixed Expenses - Variable Expenses. This went to my taxable investment account.

Pct Gross saved = undesignated savings / gross
Pct Net saved = undesignated savings / net

My total savings was the designated plus undesignated savings, but I never looked at it that way. Designated savings was an expense because I thought of it as paying now for an almost certain future bill. The undesignated savings was my LBYM result.

I hope that answered your question.
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Old 05-13-2011, 10:44 PM   #71
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Some funny math going on in this thread lol

Seems the most useful way to compare savings rates is take total inflows less total outflows and that is what you are saving. Of course that is total saving and not just retirement saving.

In the interest of not manipulating the numbers to feel good I would argue that any employer contributions are inflows, not just savings. So you need to add them to your numerator and denominator when calculating a saving percentage.

Ok here comes lots of data points. Sorry I've been a quicken user since I was 18 y/o. (34 now)

For me. My current calculated "retirement" savings are about 17% of my gross income. I just changed jobs and if I somehow managed to vest in the separate DC plan my employer has (6 year vesting and I want to relocate before then :/) then my retirement savings rate would be currently 26%. These percentages are me calculating things out back of the napkin type of thing (haven't updated all of my quicken accounts since 12/31/10).

I also try to save quite a bit of non "retirement" savings in an effort to live below my means.

Ok time for some fun Quicken stats. I have a customized report to compare my savings per year against my TRUE gross income. Income includes gross salary, bonuses, employer contributions, dividend income, interest income, gift income, etc. it's all in there.

2010 was a funky year with a job change combined with a self chosen sabbatical. My overall savings rate was 38% of gross income with an effective tax rate of 19%

2009 my most recent full year of employment my savings rate was 34% with an effective tax rate of 28%.

6 year period of 2005-2010 my savings rate was 41% and an effective tax rate of 26%.

Sadly, 2005 was the first full year I figured out that I should start recording everything gross in quicken. For the 10 years or so before that I recorded everything net.

However, running my report for the period of time from 18 years old until 33 years old my savings rate comes out as 39%. It would obviously be quite a bit lower if I recorded my pay checks gross from 1996-2004, though the paychecks before 2001 were not all that significant

Anyhow its fun to analyze this stuff.
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Old 05-14-2011, 01:41 AM   #72
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Yes, but most of the rest of us think that going to the beach in your neighborhood is a pretty nice vacation!
And yet people think Hawaii has a high cost of living... it depends on the lifestyle.
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Old 05-14-2011, 02:20 AM   #73
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i'll be adding approx. $47k into my 401k & another $50k to $60k into my taxable funds this year.
i want to sell our house & move into one of our rentals, if that happens then the taxable account will get an extra 300k to 400k boost! we will be damn close to fire then!
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Old 05-14-2011, 05:56 AM   #74
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45% of gross. Basically living off one income...........

I think one of the big economic changes in America has been the dual income phenomenon. It has increased productivity, GDP, and family wealth (or at least income). ... more people earn, produce... increases consumption... and for some of us savings!


It could be that we are enjoying a period where that excess earning power (excess money for discretionary spending and wasteful spending) may be over. I could be that more and more that extra money will have to be spent on real necessities instead of contrived necessities.

One area that seems to be completely out of control is funding college. It seems every kid goes to an out of state school or private school, lives in the dorm then and apt, high tuition, funded by mom and dad with entertainment funding accrued in student loans.

We may see a resurgence of living at home and attending the local college.
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Old 05-14-2011, 06:01 AM   #75
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If you count the employer contributions to our retirement plans, we are coming in at around 42% of gross going toward overall savings. That includes the following:

1) Maximum personal contribution to employer sponsored retirement plans (403b for DH (including catchup contribution), Roth 403b for me)

2) Employer contribution to retirement plans -- 2% of salary for DH, 7.5% for me

3) Maximum allowable contribution to ROTH IRAs for each of us -- less than typical because we can only count income earned in the US for this purpose

4) $500/month to kids college funds

5) Roughly $1200/month in cash savings -- that was last year's end of year monthly average. This year I think it should go up

Per the comment above, these calculations include the employer retirement contributions as an "input" to gross.

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Old 05-14-2011, 09:51 AM   #76
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Very respectable savings percentages here, and most definitely not typical for Americans.

Our savings rate for the past 12 months calculates for 67% of family gross income. We spent about 50% of DW's gross and have been saving all my income (my gross is over 2x DW's gross) since paying off mortgage a few years ago. Very nice situation as of today but far from stable from my employment point of view, thus very happy about being able to save so much right now.
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Old 05-14-2011, 10:40 AM   #77
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well i just looked back. Last year I saved 52% as my income was much higher. This year I am trending at 30%. I save additional but it is earmarked for car replacement and vacation.
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Old 05-14-2011, 10:40 AM   #78
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Approximately 55% of gross income (self employed, includes dividends and interest and before tax). Just getting used to a retirement income.
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Old 05-14-2011, 12:10 PM   #79
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Before DH's retirement we were saving about 45% of our total income (take home pay). After his retirement we save about 3-5% of his pension and 100% of my part-time income. I don't make very much but it changes our savings to 18% of our total income.

I'm just happy to be able to save anything after DH's retirement. I miss being able to save large chunks of money every month. I'm learning to be satisfied with saving small chunks. Saving happens more slowly now but the "extra expenses" like unexpected medical costs happen in large amounts. We plan for our regularly occurring prescription costs and office visit expenses with a sinking fund but unexpected medical had to come from savings.
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Old 05-14-2011, 01:36 PM   #80
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One area that seems to be completely out of control is funding college. It seems every kid goes to an out of state school or private school, lives in the dorm then and apt, high tuition, funded by mom and dad with entertainment funding accrued in student loans.

We may see a resurgence of living at home and attending the local college.
I'm not sure why but my observations so far are that this seems to be an American phenomenon? I'm Canadian and I attended the local University (student pop. 26K+) and lived at home as did all of my friends from high school. DH (who is American) was actually pretty surprised by this for some reason. He claims most American college kids leave home to attend College/University and live on campus as this is seen as a "right of passage". Not sure if I believe him or not but it does seem to be more common in the States.....

As for our own two kids, they will be attending the local University and live at home just like I did if they expect us to pay any of their tuition. If they prefer to leave home to go to a different University, then they can expect to pay for the difference. Sorry girls.....
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