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average savings
Old 07-25-2006, 11:17 AM   #1
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average savings

just curious what level of savings young dreamers are at. What percentage of after tax income is put away for long term investment purposes. cheers...
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Re: average savings
Old 07-25-2006, 11:30 AM   #2
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Re: average savings

I don't know if there is an average. Everybody's income and expenses are different. I live on <15-20% of my gross income, the rest is savings and income/SS taxes, but then I don't have a mortgage or a family to support.
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Re: average savings
Old 07-25-2006, 01:24 PM   #3
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Re: average savings

50% of gross income for us.
DINKS w/ mortgage >$50,000 balance.

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Re: average savings
Old 07-25-2006, 01:38 PM   #4
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Re: average savings

50% of income DINK, but mortgage of £140,00 (probably about $249.20 current exchange rates)

Dont know about anyone else but its hard saving that much.
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Re: average savings
Old 07-25-2006, 01:49 PM   #5
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Re: average savings

DH & I are saving 30-35% of our gross income (I use the gross figure because a good chunk is pre-tax savings, though the size of that chunk has dwindled over the years).

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Re: average savings
Old 07-25-2006, 02:06 PM   #6
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Re: average savings

50-60% of gross income, depending on how you define "savings". Dual income, 2 kids (DI2K).
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Re: average savings
Old 07-25-2006, 02:09 PM   #7
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Re: average savings

I have saved 46.20% of my YTD gross income. That includes 401k, Roth and taxable accounts.
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Re: average savings
Old 07-25-2006, 02:17 PM   #8
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Re: average savings

Way down with DW home, less than 10% of gross between the two of us.

Trying to get back up to 33% by next year. Also, we are in a 20 year mortgage vice 30 year to assist our ER goal.
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Re: average savings
Old 07-25-2006, 05:53 PM   #9
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Re: average savings

All on a before tax basis we do:

6% in 401K + 9% (co contribution) + 9% aftax acct = 24% when I include the co Contribution. Wife + 3 kids, no mortgage, no pension any more.

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Re: average savings
Old 07-25-2006, 06:17 PM   #10
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Re: average savings

I save about 50% of after tax income (roughly 33% of gross income).
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Re: average savings
Old 07-25-2006, 06:54 PM   #11
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Re: average savings

Somewhere b/w 12-15% in 401(k)'s of pre-tax income, plus pension plans, so it's probably higher. My latest "total compensation" statement says that my employer's cost to fund my pension last year was around 12% of my pre-tax income.

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Re: average savings
Old 07-25-2006, 08:03 PM   #12
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Re: average savings

Single income, kid on the way - 25% of gross saved for retirement. About the same amount going towards short term savings goals (cars, future house downpayment, trips, etc.)

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Re: average savings
Old 07-25-2006, 10:44 PM   #13
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Re: average savings

7% gross into a cruddy non-matched 401k. In addition to this, I save 33% of my net income. I got a 3.3% COLA this year, although I spent it- on a waverunner. Guess i'll just have to keep my personal rate of inflation below 3.3%
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Re: average savings
Old 07-26-2006, 04:12 AM   #14
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Re: average savings

I am currently around 25% going to ROTH and TSP. This will go up to 35% next year. DW is working on Masters so she will be out of the loop for a few years.

I also invest $50 into my kid's Roth monthly
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Re: average savings
Old 07-26-2006, 04:52 AM   #15
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Re: average savings

SO and I are at 50% of take home income. 24k per year into roth accounts and the rest directly into the stock market. no kids and we are both easy to please so no real budget breakers. gas is the biggest expense.
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Re: average savings
Old 07-26-2006, 07:02 AM   #16
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Re: average savings

Quote:
Originally Posted by macdaddy
24k per year into roth accounts
How are you doing this with the $4K max contribution on a Roth?

Or is this a SEP or Roth 401(k)?

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Re: average savings
Old 07-26-2006, 07:07 AM   #17
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Re: average savings

Varies considerably. I chuck the max into an SEP-IRA (unmatched). The rest of our savings is chiefly whatever remains of my bonus after paying taxes and skimming a few thousand for spending. Last year bonus was about 1/3 of my comp. Could be higher or lower this year. We are SITCOMs (Single Income, Two Children, Oppressive Mortgage).
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Re: average savings
Old 07-26-2006, 07:46 AM   #18
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Re: average savings

Quote:
Originally Posted by brewer12345
We are SITCOMs (Single Income, Two Children, Oppressive Mortgage).
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Re: average savings
Old 07-26-2006, 08:11 AM   #19
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Re: average savings

Quote:
Originally Posted by PsyopRanger
How are you doing this with the $4K max contribution on a Roth?

Or is this a SEP or Roth 401(k)?

14k into the new roth option 403(b). SO works for a public school district and qualifies for the 403(b). The roth option is brand new and her school district's benefits office only started allowing it last week.

2 public school teachers or otherwise 403(b) eligible employees would be able to put away 4k into roth iras and 14k into roth option 403(b)s each, for total roth contributions of 36k per year. and in texas (no state tax), their total tax burden would be less than 10%. talk about a sweet deal!!!

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Re: average savings
Old 07-26-2006, 08:27 AM   #20
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Re: average savings

no debt including mortgage. It was a great day when we paid that off I'll tell you. Only buy what we can pay for in cash, including cars and Vacations.

empty nesters and give no financial support to kids except occasional gifts when we want. Do help the aging in-laws by bringing frivolous items like food everytime we visit.
Note: don't try to survive mainly on social security and live into your late 80's and have health problems.

over 50% of gross in savings this year so far.
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