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How much do you put away?
Old 12-05-2006, 07:54 PM   #1
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How much do you put away?

I've searched around the site so I wouldn't ask a question that's already been asked, but I didn't find it...and I'm most interested in the young dreamers because that's what category I fall into...In general how much do each of you put away per year for retirement? This includes IRA's, SEP's, etc. as well as your taxable/personal accounts intended for retirement. I don't want to be too nosy, but I'm just curious about yearly gross salaries and the amount you are able to save. I'm also curious as to what magic number in dollars you are shooting for? I know we have to take into account the 4% rule, we all have different spending habits and needs, etc., but I'm looking for actual numbers from people.
If this is an inappropriate question please say so and if this has already been polled please direct me to it.
Gross salary?
Yearly savings?
Yearly living expenses?
Projected/hoped for age at ER/FI?
What dollar amount are you shooting for?
I know this will be different for everyone, but it's still helpful to see the numbers.
Thanks
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Oh yeah, one other thing
Old 12-05-2006, 07:57 PM   #2
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Oh yeah, one other thing

How much do you have saved already and at what age?
Sorry
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Re: How much do you put away?
Old 12-05-2006, 11:53 PM   #3
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Re: How much do you put away?

Quote:
Originally Posted by Scout
I've searched around the site so I wouldn't ask a question that's already been asked, but I didn't find it...and I'm most interested in the young dreamers because that's what category I fall into...In general how much do each of you put away per year for retirement? This includes IRA's, SEP's, etc. as well as your taxable/personal accounts intended for retirement. I don't want to be too nosy, but I'm just curious about yearly gross salaries and the amount you are able to save. I'm also curious as to what magic number in dollars you are shooting for? I know we have to take into account the 4% rule, we all have different spending habits and needs, etc., but I'm looking for actual numbers from people.
If this is an inappropriate question please say so and if this has already been polled please direct me to it.
Gross salary?
Yearly savings?
Yearly living expenses?
Projected/hoped for age at ER/FI?
What dollar amount are you shooting for?
I know this will be different for everyone, but it's still helpful to see the numbers.
Thanks
This question will largely depend on the particular employer in terms of % of pre-tax vs after-tax savings. For instance, my current employer is changing retirement plans from SEP IRAs (20% of salary) to a traditional pension plan + optional employee-funded 401(k)....for my particular situation (30 year old), I will have about $25k funded by the company in my pension account, with $15k added to my 401(k) account balance. In addition, I will put $4k in a non-deductible Traditional IRA for 2006, and will (again) save about 90% of my net income in after-tax accounts (don't have housing costs-yet, although that will likely change in the next few months). Yes, I am still living at my parents house (like the other 33% of the 18-35 year old age group), although they are only here less than 1/2 of the time - so that's a big plus in the savings department. That, and my employer pays for my vehicle expenses....so my biggest expenditure category is my "significant other/relationship" category (and trying to find "the one"). Total expenditures for 2006 are estimated at $11,500 (including about $4,000 for a trip to New Zealand), which would obviously be much higher with a house (which I will likely own next year, and hopefully rent out/get a roommate with).

Sure, many people can't handle a lot of the sacrifices I made from age 23-30, but it won't be long (a few years) until I can pretty much spend everything from my job and just let the stash rise on autopilot and call it quits (or call whatever else I want to do ).
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Re: How much do you put away?
Old 12-05-2006, 11:55 PM   #4
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Re: How much do you put away?

Here is a link to some of your answers for the 30-39 crowd.

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Re: How much do you put away?
Old 12-06-2006, 12:46 AM   #5
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Re: How much do you put away?

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).
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Re: How much do you put away?
Old 12-06-2006, 07:15 AM   #6
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Re: How much do you put away?

It has varied very considerably for us over the last 10 years. When we were in our 20s, both working and no kids, we maxed out 10ks and put away extra taxable money on low 6 figure total income. When we were both working full time and going to grad school at night, we just about managed to max out 401ks, but occasionally pulled some dough out of taxable accounts, with income n the low to mid six figures. Now DW has a (very) small side business that nets maybe $5k a year (all goes into a solo 401k), and my compensation is low six figures base plus an annual bonus that can range from a small amount to multiles of my base. We max out my 401k, but additional savings depends on my bonus (save the vast majority of it, although this year we will have to use some for a long overdue kitchen renovation).
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Re: How much do you put away?
Old 12-06-2006, 08:26 AM   #7
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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?
I know this will be different for everyone, but it's still helpful to see the numbers.
Thanks
Household income: ~ $110,000

Percent saved strictly for retirement: ~ 19% of gross income (all to retirement accounts) another ~ 3% (of househouse income) matched by my employer so ~ 22% total of gross income. I forsee this climbing to about 25% in the next 2-3 years.

Projected age at ER/FI? No later than 58, no sooner than 50. I dont hate my job, so i'm in no rush, but I am particularily attracted to the idea of FIRE. Maybe its because i'm a strong INTJ? (greater than 90 percentile on all 4 myers-briggs factors)

What dollar amount are you shooting for? approximately 2 million (not counting pension/SS or possible inheritance)

Investments: currently about 85% stock (30% foreign stock(developed countries), 30% large cap domestic, 25% mid/small cap domestic), 6% domestic bond, 5% international bond, 4% cash (my personal residence is excluded in this)
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Re: How much do you put away?
Old 12-06-2006, 08:54 AM   #8
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Re: How much do you put away?

26, married, 2 kids.

Saving somewhere around 50% of gross earnings. Gross earnings are ~$125k. Just a couple years into my career, so the gross income is expected to rise a lot in the next few years and then creep up after that. I included the profit sharing matches we get every year and the 401k matches we get into Gross earnings and into the amount we save.

Shooting for ~$1.35 million in today's dollars. Hope to get there in 7-10 years. Currently have ~$250k.

I'm also paying down the mortgage very aggresively and should have it paid in 7-10 years too.
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Re: How much do you put away?
Old 12-06-2006, 08:59 AM   #9
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Re: How much do you put away?

Scout.... continue to be blown away by these claiming 40-60% of gross saved just for retirement. I still havent decided if i believe them yet, because i dont know what's better for their behalf; believe it and think they're crazy, or not believe it and just think its human nature to lie. I make this statement light-hearted and not intended to offend.

Despite this i'll continue to think of my puny 22-25% of gross as massive, because it is compared to my peers.
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Re: How much do you put away?
Old 12-06-2006, 09:19 AM   #10
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Re: How much do you put away?

Heh heh heh heh heh heh heh heh heh heh heh

1966 - salary 8300 saved about 1500. 1992 salary 60,000 saved maybe 10k. Single, no kids.

Keep those compound interest curves handy AND especially study those earliest $ examples that often are presented. Time in the market - all together now time in the market.

Heh heh - the later starters have to save a lot more. I'm leaving out real estate and sale of a private business and other lump sum critters.
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Re: How much do you put away?
Old 12-06-2006, 09:35 AM   #11
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Re: How much do you put away?

Quote:
Originally Posted by Azanon
Scout.... continue to be blown away by these claiming 40-60% of gross saved just for retirement. I still havent decided if i believe them yet, because i dont know what's better for their behalf; believe it and think they're crazy, or not believe it and just think its human nature to lie. I make this statement light-hearted and not intended to offend.

Despite this i'll continue to think of my puny 22-25% of gross as massive, because it is compared to my peers.
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.
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Re: How much do you put away?
Old 12-06-2006, 09:44 AM   #12
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Re: How much do you put away?

Hi,

Single but living with SO, and I'm 37. These numbers are for me only.

Salary - $125K
Savings per year = $35K or more, about 27-30% of pay
Expenses - the rest (including the big chunk for taxes of course)

I own my townhome and it has about $300K of equity in it.

NW of investments (not including home equity) = $450K

I plan to retire in 15 years at age 52. I'll get gov't pension at 57 which will be about 30% of my high three salaries. That will probably be about 50% of what I need to live on. To be really conservative, I want to have $1.5 million, not including the pension value, and have the house paid off. But I probably need less.

Karen

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Re: How much do you put away?
Old 12-06-2006, 09:45 AM   #13
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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).
Quote:
Originally Posted by justin
26, married, 2 kids.

Saving somewhere around 50% of gross earnings. Gross earnings are ~$125k. Just a couple years into my career, so the gross income is expected to rise a lot in the next few years and then creep up after that. I included the profit sharing matches we get every year and the 401k matches we get into Gross earnings and into the amount we save.

Shooting for ~$1.35 million in today's dollars. Hope to get there in 7-10 years. Currently have ~$250k.

I'm also paying down the mortgage very aggresively and should have it paid in 7-10 years too.
I bow to you guys. Amazing, simply amazing!
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Re: How much do you put away?
Old 12-06-2006, 09:57 AM   #14
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Re: How much do you put away?

I'm saving around 80% into tax deferred vehicles. If I had all that paid to me and taxed, my savings rate would drop from 51% to 38% or so.

I also happen to be at the right place at the right time with my employer. We're growing rapidly, and it is sort of in the "start-up" phase where the employees get huge profit sharing contributions for certain business and tax reasons. That's included in my "savings rate" too.

I also don't have huge cash reserves for capital improvements or big repairs to the house, or a new car fund. When these expenses occur, my savings rate may dip temporarily.

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).
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Re: How much do you put away?
Old 12-06-2006, 10:07 AM   #15
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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).
It's perfectly believable. What's amazing is the will power to do so.
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Re: How much do you put away?
Old 12-06-2006, 10:11 AM   #16
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Re: How much do you put away?

Quote:
Originally Posted by Sam
It's perfectly believable. What's amazing is the will power to do so.
Wife's on board (more or less! ). Everything is automated, taken out of paychecks or DCA'd into my taxable accounts 2x a month. It's just another bill to me.

Also, there's just not a lot of feasible stuff that I want right now. 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? If I had an extra 45-50 hrs/wk for "me" time, I could probably fill it up with something fun.
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Re: How much do you put away?
Old 12-06-2006, 10:26 AM   #17
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Re: How much do you put away?

During my last three years of work, I was saving 40% - 50% in TSP/Roth/CDs.

Gross income ~$70k/year.

Single, no debt, paid for house.

Back in 2000 - 2001, I got a pay increase and promotion; I also started getting max bonuses.

I did not increase expenses, I kept cutting them.

I took an early retirement offer in Dec '04.

I am spending less than my pension, haven't touched savings.

In Oct I spent $1000, $1100 in Nov.

And I can't stop thinking of ways to save money.

Is there a 12 step program for savers?
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Re: How much do you put away?
Old 12-06-2006, 10:26 AM   #18
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Re: How much do you put away?

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Is there a 12 step program for savers?
A wife!
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Re: How much do you put away?
Old 12-06-2006, 10:48 AM   #19
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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?
...
Since you asked:

My wife and I earn about $100k gross combined. (I'm 34, she's 44)

In 2006, which isn't over yet, we saved about $25k in 401k's. After tax, we put away only maybe $1k or $2k into an ING account.

Our ongoing expenses are about $30k to $40k per year.
That leaves somewhere between $33k and $44k going to expenses that won't carry over to retirement: taxes, mortgage, daycare, commuting, etc...

We may semi-retire sometime within the next 7 or 8 years. I'd like to have $750k in todays dollars to pull this off. My wife is expecting a small pension. I plan to downshift to a regular J-O-B for most of my 40's. None of these plans are firm, though.

As of yesterday, we have $200k in retirement savings accounts. I know that we need to continue saving more money to accomplish FIRE, but I think its within my grasp.
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Re: How much do you put away?
Old 12-06-2006, 11:01 AM   #20
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Re: How much do you put away?

We put away $50K this year.
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