How much do you put away?

[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

 

[Scout]

Oh yeah, one other thing

How much do you have saved already and at what age?
Sorry

 

[MooreBonds]

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 ).

 

[Ponks]

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

Ponks

 

[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).

 

[brewer12345]

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).

 

[azanon]

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)

 

[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.

 

[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.

 

[unclemick]

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.

 

[brewer12345]

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.

 

[kaudrey]

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

 

[Sam]

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).

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!

 

[justin]

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).

 

[Sam]

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.

 

[justin]

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.

 

[Khan]

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?

 

[justin]

Is there a 12 step program for savers?

A wife!

 

[slepyhed]

...
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.

 

[Spanky]

We put away $50K this year.

 

[cons]

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/index.php?topic=3703.msg62597#msg62597

 

[Andre1969]

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.

 

[rs0460a]

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

 

[macdaddy]

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.

 

[azanon]

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)