average savings

[SLC Tortfeasor]

I'm saving 34% of gross, all into tax-advantaged retirement accounts. I could conceivably have extra to go into regular taxable investments, but I'm not going to push myself too hard there. I figure 34% is way better than average, so if I have a little left over to play with, I'm going to play. 8)

 

[ptolemy]

I live in New Zealand where savings rates are very low.

We save about 40% of after tax income - we only have 1 income, two kids and my wife is at college studying.

 

[FinanceDude]

Before kids.............45% of net.............after 2 kids................30% of net...........

Kids are expensive, but we afford them all the opportunities that are available for them we can.......

Oh yeah, no cable tv (since 1987!), don't party much at all, negotiate everything.............same stuff as everyone else.............

 

[Mudd]

FinanceDude- "don't party much at all"

Remember when "Party" became a verb? I know I'm old because by the time we would go out in the college days, I'm now in bed sleping for nearly an hour.

 

[mudbuddha]

DW and I save 25% of our gross income plus company matching of 6% for each.

401K total approx $40K
Emmigrant Direct $44K
other savings $10
IRA $10K

No CC debt and no kids for now, just a mortgage on a 3 years old house.

We are aggressively saving more each year and will plan to semi retire at 45 and really ER at 50. 8)


Duke

 

[SLC Tortfeasor]

DW and I save 25% of our gross income plus company matching of 6% for each.

401K total approx $40K
Emmigrant Direct $44K
other savings $10
IRA $10K

No CC debt and no kids for now, just a mortgage on a 3 years old house.

We are aggressively saving more each year and will plan to semi retire at 45 and really ER at 50.  8)


Duke

I, too, am a satisfied Emigrant Direct user. It sounds like you have a disproportionate amount of cash in that savings account though.

 

[mudbuddha]

Yes, i am looking into some no load MF and max out on our IRA too...we just got the roth IRA set up as well as the Emigrant Direct. It takes a little whie to set up but once set up, it'll be easy to transfer monies around.

What do you recommend?

Duke

 

[saltydog]

Currently at 37% of gross income. About 20% of GI goes into tax advantaged accounts. The reaminder heads towards 529s for three younings, non-tax advantaged savings, and some short term savings.

I have no housing expenses (nor a house either) and am eligible for a pension in 9 years at which point a house will become a requirement.

 

[SLC Tortfeasor]

Yes, i am looking into some no load MF and max out on our IRA too...we just got the roth IRA set up as well as the Emigrant Direct.  It takes a little whie to set up but once set up, it'll be easy to transfer monies around.

What do you recommend?

Duke

Yeah, it is time consuming to set things up. Getting my accounts all interlinked was sort of a pain, but you're right that it's nice to be able to move money around.

Don't look to me for investment advice! I'm only getting into it. I've got a variety of stock mutual funds, and a few stocks for just playing around. Vanguard's target retirement date funds (or "lifecycle" funds as they're known in other circles) are good no-brainers.

 

[uncledrz]

I live in New Zealand where savings rates are very low.

Mind if I ask why? Are retirement issues handled by the government?
Are medical issues handled by the government? If not, how?

Just curious

 

[FinanceDude]

Yeah, it is time consuming to set things up.  Getting my accounts all interlinked was sort of a pain, but you're right that it's nice to be able to move money around. 

Don't look to me for investment advice!  I'm only getting into it.  I've got a variety of stock mutual funds, and a few stocks for just playing around.  Vanguard's target retirement date funds (or "lifecycle" funds as they're known in other circles) are good no-brainers.

Don't like Lifecycle funds...............a great idea that's been overmarketed............

 

[justin]

Don't like Lifecycle funds...............a great idea that's been overmarketed............

What is your rationale?


I think they are great although I don't currently own any. If I had to pick a single fund, I'd probably pick a target retirement/lifecycle type fund. Same for recommending something to family/friends/children who just need a decent investment to start out with. Simple, easy to implement, low cost jack-of-all-trades funds. Just make sure to pick the one that fits your risk profile.

They beat the heck out of most other funds with much higher sales fees + expenses.

 

[k-man]

We save 55% of our net, 40% of our gross (We are DINKs, 39 and almost 38 with plans to retire in our early 50s). No debt at all (not even mortgage). It's so nice to see the numbers that folks here are saving. You have no idea just how rare we all are here.....

 

[mathjak107]

The problem with most life cycle fund investing is that people buy them and then have loads of other investments that defeat having the lifestyle funds.

Lifestyle funds work great but need to stand on their own. Some may be more or less aggressive but they still provide far better diversification and planning than 99% of the people out there do on their own when they have such little knowledge about finance as most do..

 

[FinanceDude]

The problem with most life cycle fund investing is that people buy them and then have loads of other investments that defeat having the lifestyle funds.

Lifestyle funds work great but need to stand on their own. Some may be more or less aggressive but they still provide far better diversification and planning than 99% of the people out there do on their own when they have such little knowledge about finance as most do..

Agree with your post 100%.................

Besides, if you do some homework on how to invest, you probably will do better...........

Don't like the FIDO Freedom Funds either............

 

[MrsSmartyJones]

We live by the "pay ourselves first" motto. So we have all savings swiftly tucked away before it hits our hot little hands. We max out the 401(k), with added $5k company match. We max out both Roth's each year and put $1000 a month in a MM account. We are fortunate enough, albeit from unfortunate reasons, to have about $23K per year in tax-free military retirement benefits. (VA and Combat related disability) So, in essence, we are investing in our Roth's with a portion of our tax free money...

All in all, we save about $40k per year. Not bad, but not super great, since we both got obliterated by divorce 5 years ago, and we started from scratch @ 38 and 32. So we lost time, more than anything...If, when, I go back to work, I can only work for a company that will allow me to max out my 410(k) contributions. Otherwise it doesn't make tax sense for us to do that. We will get slaughtered by Uncle Sam. I have found that so many companies put a cap on the % of salary you can invest in a 401(k). If you make $40k a year and they only allow 25% max contributions, well...big whoop! You're not really maxing out your 401(k)...

Good luck to the OP (original poster). So many people on this DB are on the right track. It's really great to see that...I am excited to learn from everyone on here.
Now, can we get the other 80% of this country on track?

 

[Nords]

Now, can we get the other 80% of this country on track?

But then who'd contribute their payroll taxes to Social Security & Medicare?

 

[Sam]

I second, third, and fourth Nords' comment. Please people, some of us rely on SS benefits!

 

[mathjak107]

Boy do i see the working stiffs getting hammered paying for ss and medicare as no politicians want to tell 80 million voting baby boomers they either cutting something or raising there taxes.

 

[mathjak107]

wow my 1000'th post. no wonder my hair hurts from all this thinking.

 

[73ss454]

wow my 1000'th post. no wonder my hair hurts from all this thinking.

JG used to have a trick to increase his post count. He would use 2 to 4 posts in a row on the same thread.

 

[Nords]

JG used to have a trick to increase his post count. He would use 2 to 4 posts in a row on the same thread.

There's a difference between post count and post content.

 

[Mr._johngalt]

JG used to have a trick to increase his post count. He would use 2 to 4 posts in a row on the same thread.

Hey. That wasn't a "trick". I think and write so fast that by the time I hit
"Post" I had a new idea which (of course) was too good to keep to myself.

JG

 

[Mr._johngalt]

There's a difference between post count and post content.

Now there you and I are in complete agreement.

JG

 

[MrsSmartyJones]

But then who'd contribute their payroll taxes to Social Security & Medicare?

Did I say something offensive? That wasn’t my intention. What I meant was that that 80% of Americans aren't doing squat about their financial futures. The average balance in most 401(k) accounts upon retirement is only $60k. I know that people rely on SS benefits, especially the ones who draw it today, like my grandparents, parents, and the new up and coming baby boomers. But, for us, late boomers, Gen X’s, we think of SS as a perk we might get when we retire...More like a bonus check...We don't plan our retirement around it. We can't do that to ourselves.