Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: How much do you put away?
Old 12-06-2006, 11:01 AM   #21
Recycles dryer sheets
 
Join Date: May 2005
Posts: 58
Send a message via MSN to cons Send a message via Yahoo to cons
Re: How much do you put away?

For the past 2 years, we've been putting away ~33% (TSP/IRAs/Taxable) of our yearly gross income (low six figures).

Next year should be about the same (+/- 3%).

In this part of the US, the northeast, it's very challenging for a young married couple with kids to put much away for retirement. mainly due to the housing prices and property taxes. There are some sacrifices that would need to be made to meet that challenge. Thus, it is possible and believeable if the couple has the right mindset.

I work with ~50 colleagues who vary between the ages of 30-50. Many, if not all, of my colleagues at work max out their retirement plan, and have been doing so for as long as I've known them. They only wish they could contribute to ROTH IRAs....fortunately they exceed the income limits. However, many of them have brokerage accounts as well, where they play with individual stocks. I try my best to stay out of those conversations....not my cup of tea since I stick to mutual funds.

Edit to add: I'm almost positive that this has been discussed before more than once:

http://early-retirement.org/forums/i...62597#msg62597
__________________

__________________
cons is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: How much do you put away?
Old 12-06-2006, 11:10 AM   #22
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: How much do you put away?

Once the year is up, I will have put away about $15000 into my 401k, $4000 into my Roth, $10600 into mutual funds, and my company match on the 401k might be about $1600.

For 2007 I'm still doing the Roth thing and not messing with the 401k, but I'll probably have to cut back on after-tax investing. Had a few things come up this past year, like building a garage, paying off a car, and paying down the mortgage that are now starting to catch up to me.
__________________

__________________
Andre1969 is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 11:14 AM   #23
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: How much do you put away?

Quote:
Originally Posted by Scout
Gross salary?
Yearly savings?
Yearly living expenses?
Projected/hoped for age at ER/FI?
What dollar amount are you shooting for?
Gross salary? - Dosen't matter. It's more than enough to let me/DW lead the life "we want to lead".

Yearly savings? - Retirement directed investments at 33%. Actually save more, but I think that's what U R looking for/at.

Yearly living expenses? - Yes.... (I guess equal/less than 66% of our gross salary, since we are saving/investing the rest?)

Projected/hoped for age at ER/FI? - FI; already there. ER; 1-May-07 (59 yrs of age) for me. Wife is undertermined, even if from a financial view, she could leave today. I would be going at the end of '06, but my wife (not being emotionally ready to retire on her own in May) has asked me to "stay on" till spring, even though my "true" retirement target is Jan 3, 2007. Of course, since May is only a few months of the rest of my life (hopefully ), I'll grant her wish.

What dollar amount are you shooting for? - Also does not matter. We will retire at 100-125% of our current net income, which will continue to provide us with the ability to do what we want (include several annual vacations to Europe and other places in the world, as we do now).

- Ron





__________________
rs0460a is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 01:29 PM   #24
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
Re: How much do you put away?

Quote:
Originally Posted by Sam
I bow to you guys. Amazing, simply amazing!
the three biggies are no kids (we're young), low cost of living, and good health. once we have kids and/or if we move to some place a little more expensive, i'm sure the numbers would change and become much less impressive. we prefer eating in and don't go out much - maybe once a week to a cheap place. for entertainment, we hit the library and we have a netflix subscription. no daily starbucks or jamba juice. we carry & pay with cash most of the time. the internet is cheap. the biggest single expense is usually gas. i understand not everybody is happy living this way but it works for us. i would say it's half natural disposition and half what i was taught by my parents.
__________________
macdaddy is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 02:52 PM   #25
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: How much do you put away?

Quote:
Originally Posted by brewer12345
Why would you doubt what people say?

If you suddenly started making $500k a year, would you still save only 25% of gross? Naturally, you would probably upgrade your lifestyle somewhat, but its hard to imagine spending all of the increase.
I didnt realize everyone that was claiming to save 40-60% of gross was making in the neighborhood of 500K. If that is the case, then I withdraw my thoughts on that.

It was just a remark though. Actually, i do believe them though i'm sure there's a few math errors on occasion (such as confusing gross with net, or mixing in non-retirement savings, etc)
__________________
azanon is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 03:03 PM   #26
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: How much do you put away?

Quote:
Originally Posted by justin
I don't really think it's unbelievable that a family of 4 making over six figures can save around half of what they make (when, in my case, I pay very little income tax).
Its not a matter of being believeable or not. Its a matter of being rational or not.

In the small town i grew up in, you can live like more than half of the residents there on 15K a year. Question is, does it make sense for a 6 figure income person to live that way? Restated, why work so hard to get to such an important, high paying position in life just to hoarde money in the bank? Perhaps just as illogical, why work so hard to get in a powerful position of authority just to see how fast you can quit it? I don't get it.

I"m all for FIRE and saving way above the american norm, but one can overdo it, i think.

Quote:
Also, there's just not a lot of feasible stuff that I want right now.
come stop by my house and see my 40" Sony HDTV in action, and i can fix that real quick.

Quote:
If I had more time to play or enjoy "things", then I could spend some money on a few things! But who has tons of free time with kids, a job, and a working spouse, familial and social obligations, etc?
Me? Maybe a change in jobs is in order?

Quote:
If I had an extra 45-50 hrs/wk for "me" time, I could probably fill it up with something fun.
Sounds like a plan! If you want some help on job ideas, just pm me.
__________________
azanon is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 03:13 PM   #27
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: How much do you put away?

Quote:
Edit to add: I'm almost positive that this has been discussed before more than once:
You only found one? I didn't pick on the OP on that, but i'd almost guess its the most asked question at this forum in various forms, such as polls too.
__________________
azanon is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 04:30 PM   #28
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Re: How much do you put away?

My base is in the low 6 figures and my bonus is usually about 30-75% of my base. This year I vowed to save 40% of my gross, and it looks like we're going to miss that by a few% which puts us at saving 37-39% of my gross. My wife doesn't work.

We took a couple last minute trips, I spent a stupid amount of $$$ on electronics this year, and I bought a new car.

We're trying to sell our condo and buy a house at which point I know our savings % will go down.
__________________
saluki9 is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 05:10 PM   #29
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: How much do you put away?

Past polls have put a lot of folks in the over 40% crowd, which I dont have any problem believing.....I havent been finding it too difficult....we dont eat out a lot and not crazy about expensive vacations, went to good state school with engineering degree so have nice income and little debt coming out...lower cost housing since not on either coast, too
__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 06:09 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: How much do you put away?

Ballpark this year is 20%, plus some matching, plus some extra on the mort...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 06:47 PM   #31
Recycles dryer sheets
 
Join Date: May 2006
Posts: 77
Re: How much do you put away?

Quote:
Originally Posted by macdaddy
me & SO... our combined after tax take home is ~ 100k...
4k + 4k = 8k into roth IRAs
15k + 15k = 30k into roth option 403b and 401k
~ 2k a month into after tax stock fund = 24k

so we put away about 62k a year. it may actually be closer to 70k. we are pretty cheap (but just as happy as can be).
Just curious Macdaddy, how is it possible for you to live on $30,000/year? Is your house paid off? Do you not have a family? We are a family of four with two little children and after paying for all the extracurricular activities, taking a vacation annually, etc., it would be impossible to live on that. I wonder where in the US, a family of 4 can live comfortably on $30K a year. I am one of the most frugal person but I would find life very difficult if I had to live on such little money. One of the most important things I do is to provide my children with enrichment experiences (e.g. skating, swimming, music, etc.). Don't most middle class parents do that? Again, just curious. Please tell me your secret.
__________________
ADJ is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 08:16 PM   #32
Recycles dryer sheets
 
Join Date: May 2006
Posts: 442
Re: How much do you put away?

Quote:
Originally Posted by Scout

Gross salary?
Yearly savings?
Yearly living expenses?
Projected/hoped for age at ER/FI?
What dollar amount are you shooting for?
OK. Since you asked, here is mine:

Salary: DW & I make a combined 200K.
Yearly savings (from salary): 120K
Yearly living expenses: 28K (for last year).
Projected/hoped for age at ER/FI: 55-57 (7-10 more years)
What dollar amount are you shooting for: 5M



__________________
dmpi is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 09:00 PM   #33
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: How much do you put away?

Quote:
Originally Posted by dmpi
OK. Since you asked, here is mine:

Salary: DW & I make a combined 200K.
Yearly savings (from salary): 120K
Yearly living expenses: 28K (for last year).
Projected/hoped for age at ER/FI: 55-57 (7-10 more years)
What dollar amount are you shooting for: 5M
Based on your projected target and annual savings, the current portfolio is over 1M assuming a return rate of 10% and an annual 5% increase in savings. You have sufficient funding to retire now since your living expense is only $28K while a 4% SWR would provide more than $40K. Why shoot for $5M? Are you expecting your expenses will increase to warrant an income of $200K?
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 11:18 PM   #34
Recycles dryer sheets
 
Join Date: May 2006
Posts: 442
Re: How much do you put away?

Quote:
Originally Posted by Spanky
Based on your projected target and annual savings, the current portfolio is over 1M assuming a return rate of 10% and an annual 5% increase in savings. You have sufficient funding to retire now since your living expense is only $28K while a 4% SWR would provide more than $40K. Why shoot for $5M? Are you expecting your expenses will increase to warrant an income of $200K?
My DW & I are quite happy and content with our current standard of living. So we plan on living our retirement pretty much the same way we live now. Right now our jobs are fairly interesting. We don't mind working until we reach 55. Also our workplace covers our medical, so that works out well.

We are strong believer in environmental causes. We have plans for the extra money. The plans are a bit fuzzy right now, but they involve buying up land to protect small animal habitat. My DW & I are both long distance runners, and we are blessed to be able to run on urban trails that actually contain wildlife. As the years go by we have seen the animal habitat slowly being destroyed by construction. We want to do our little part to help.
I'm sure some of you guys think this is silly.
__________________
dmpi is offline   Reply With Quote
Re: How much do you put away?
Old 12-06-2006, 11:25 PM   #35
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
Re: How much do you put away?

Quote:
Originally Posted by ADJ
Just curious Macdaddy, how is it possible for you to live on $30,000/year? Is your house paid off? Do you not have a family? We are a family of four with two little children and after paying for all the extracurricular activities, taking a vacation annually, etc., it would be impossible to live on that. I wonder where in the US, a family of 4 can live comfortably on $30K a year. I am one of the most frugal person but I would find life very difficult if I had to live on such little money. One of the most important things I do is to provide my children with enrichment experiences (e.g. skating, swimming, music, etc.). Don't most middle class parents do that? Again, just curious. Please tell me your secret.
ADJ, we don't have any children, and I certainly think this is the #1 reason why our expenses are so low. Once we do have kids, expenses should shoot up a lot. I would not keep those kinds of experiences from my kids just to try to save a higher %.
__________________
macdaddy is offline   Reply With Quote
Re: How much do you put away?
Old 12-07-2006, 03:24 AM   #36
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Re: How much do you put away?

As a single guy I think $30k a year budget is doable. Worked for me for about 5 years. I'd rather have more, but it was good while I was paying off debt. I'll probably spend more next year. $30k included apartment rent.

I started saving 15% of my income to my 401(k) when I was 21. I backed off when I was 29 or 30 to start paying off debt aggressively. Over the next 6 years my contributions bounced up and down a lot from 2% to 25% (briefly after debt paid off). At the moment I'm pretending to be ER but need to get a job real soon. I want to enjoy myself more so who knows what I'll be saving in the next 5 years.

I don't feel like giving hard numbers, but I noticed that every time I got a raise I started getting tighter and tighter on money at the end of the month because I would upgrade my apartment, my car, etc., etc.. So I had to find a balance between living well enough and living below my means. Now that things are under control I'll probably play around with the balance for the next year or two. I figure about the time I have it figured out somebody will want to marry me and screw it all up.
__________________
BigMoneyJim is offline   Reply With Quote
Re: How much do you put away?
Old 12-07-2006, 06:16 AM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Re: How much do you put away?

Quote:
Originally Posted by Scout
Gross salary?
Yearly savings?
Yearly living expenses?
Projected/hoped for age at ER/FI?
Gross salary: Reasonable for two working professionals.
Yearly savings: One of our salaries.
Yearly living expenses: Counting payroll taxes? It makes a big difference cuz they are something like $50K a year.
Age of ER/FI: ER whenever we feel like it. FI was a few years ago.
Amount invested: A couple of big ones.

Oh, and yes, we have young children.
__________________
LOL! is offline   Reply With Quote
Re: How much do you put away?
Old 12-07-2006, 06:32 AM   #38
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
Re: How much do you put away?

Quote:
Originally Posted by BigMoneyJim
I figure about the time I have it figured out somebody will want to marry me and screw it all up.
If you find the right person you can get there twice as fast!
__________________
macdaddy is offline   Reply With Quote
Re: How much do you put away?
Old 12-07-2006, 07:23 AM   #39
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: How much do you put away?

Quote:
Originally Posted by dmpi
We are strong believer in environmental causes. We have plans for the extra money. The plans are a bit fuzzy right now, but they involve buying up land to protect small animal habitat. My DW & I are both long distance runners, and we are blessed to be able to run on urban trails that actually contain wildlife. As the years go by we have seen the animal habitat slowly being destroyed by construction. We want to do our little part to help.
I'm sure some of you guys think this is silly.
Thanks. I do not think it's silly -- it's noble. Continue the good work caring for the small animals.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: How much do you put away?
Old 12-07-2006, 08:17 AM   #40
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: How much do you put away?

Quote:
Originally Posted by Azanon
Its not a matter of being believeable or not. Its a matter of being rational or not.

In the small town i grew up in, you can live like more than half of the residents there on 15K a year. Question is, does it make sense for a 6 figure income person to live that way? Restated, why work so hard to get to such an important, high paying position in life just to hoarde money in the bank? Perhaps just as illogical, why work so hard to get in a powerful position of authority just to see how fast you can quit it? I don't get it.

I"m all for FIRE and saving way above the american norm, but one can overdo it, i think.

come stop by my house and see my 40" Sony HDTV in action, and i can fix that real quick.

Me? Maybe a change in jobs is in order?

Sounds like a plan! If you want some help on job ideas, just pm me.
It sounds like you have made your choices in life. And that is ok. Other people live differently and value different things in different ways. And that is ok too.

I'll just say that neither DW nor I are in "positions of power" so to speak. We are both at the "entry level" in our respective professions (analyst at investment bank and engineer). When you find someone to pay me for traveling the globe, drinking beer on the beach while perfecting my tan, killing space aliens in the latest first person shooter video game, reading books while hanging out lakeside in my backyard, or wrasslin with my kids, please give me a call. I'll even give you 20% of my gross salary as a headhunters fee.

Until that time, I'll keep spending 40-42 hrs a week at work, and another 5 or so getting ready for work and commuting to work. And saying "yes sir" to my boss, and making the most of it while I am employed. I want the money. The job isn't so bad (as far as jobs go). The money is very nice. Good friendly folks at work (in general).

Az, I am sincere when I say I am glad for you if you have found a truly meaningful and rewarding job. Probably more accurate to call it your avocation. Maybe one day I'll find mine. In the meantime, I'll stick with the devil I do know versus the devil I don't.
__________________

__________________
justin is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Where should I put taxable after-emergency fund money? Olav23 FIRE and Money 6 03-24-2007 08:35 PM
put (small) income into Roth or spend it ? JohnEyles FIRE and Money 3 03-13-2007 10:51 AM
How would you find someone to put an estate plan together MasterBlaster FIRE and Money 9 02-23-2007 02:08 PM
Where to put cash if you don't trust the market.... HBH FIRE and Money 46 12-19-2006 06:07 PM
Balancing: Trim some off some equity, and put it into... what? Telly FIRE and Money 26 09-19-2005 01:35 PM

 

 
All times are GMT -6. The time now is 04:00 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.