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View Poll Results: What percentage of your gross yearly income do you save for retirement? "Income" = payche
0% - 2% 3 2.46%
3% - 5% 1 0.82%
6% - 8% 1 0.82%
9% - 11% 8 6.56%
12% - 14% 5 4.10%
15% - 17% 7 5.74%
18% - 20% 5 4.10%
21% - 23% 10 8.20%
24% - 26% 7 5.74%
27% - 29% 4 3.28%
30% - 32% 13 10.66%
33% - 35% 8 6.56%
36% - 38% 6 4.92%
39% - 41% 5 4.10%
42% - 44% 11 9.02%
45% - 47% 1 0.82%
48% - 50% 7 5.74%
51% - 53% 3 2.46%
54% - 56% 3 2.46%
57% - 60% 2 1.64%
More than 60% 12 9.84%
Voters: 122. You may not vote on this poll

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Re: What percentage of your gross income do you save?
Old 10-25-2005, 09:30 AM   #21
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Re: What percentage of your gross income do you save?

Hmmmmmmmmmm.

Taxes=40%
Savings=20% DW and 22% me.
The rest is mortgages (2) and living expenses.

After RE, the overall budget will drop by over 50%.

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Re: What percentage of your gross income do you save?
Old 10-25-2005, 09:47 AM   #22
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by Martha
I have this very unscientific feeling that most families can get along in the US with about $50,000 a year in income.* I know plenty have less and plenty have more, but $50,000 feels like a nice number to me.* You won't be able to live in NY or SF or buy a house in San Diego, but you could get along.* I think below that number it is very difficult to save and above that number it gets easier.*

Am I full of it?
$50K is about right. You won't be able to save much on $50K, but it would make for an average living.
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Re: What percentage of your gross income do you save?
Old 10-25-2005, 09:58 AM   #23
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by Honkie
Just polled in the 60% plus category. The precise figure is 64%. Yes we have high income, but importantly, we mostly live well within it.

Cheers

Honkie
But with high income comes high taxes.... I would think that you would have at LEAST 25% of gross taken up by taxes, which means you live on about 10% of your income? I think it could be done if you make a whole lot and live like middle class....
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Re: What percentage of your gross income do you save?
Old 10-25-2005, 09:59 AM   #24
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by Honkie
Well spotted HKMike!! (my handle isn't quite as obvious as yours).

Should we let the others know that local taxation means that our net is a minimum of 83% of our gross??* *

Cheers
Honkie

OPPssss missed this one.... now I see
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Re: What percentage of your gross income do you save?
Old 10-25-2005, 10:56 AM   #25
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Re: What percentage of your gross income do you save?

I answered over 60% because that's about what it's going to be for this year. My income wages will probably come in at around $52,000 this year. 401k will hit the $14,000 max for this year, plus I've been socking away around $1300 per month into mutual funds and I did $4000 into a Roth this year. So that'll be $33,600 invested this year, divided by $52,000, comes out to around 64.5%. Just taking the 401k into account, it comes out to around 27% (and I get a 3% match on top of that)

However, a few disclaimers...
1) my house is free and clear. Or, well it would be, if not for the $100,000 HELOC I took out!
2) I have two roommates, and they buy most of the food, so that helps a lot with living expenses and spending money

I'm probably going to cut back on saving next year, because I've had some fairly large expenses come up, such as building a garage, and car repairs that have drained my checking account. I might try to tap into my Emigrant Direct account to keep up the investing for awhile, but then I might not. Haven't decided yet. I like having that money sitting there in case I really need it...and I might be needing a new roof soon.

If I do cut back on saving though, it'll be the mutual funds where I start first. The Roth and the 401K will be the last things I mess with.
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Re: What percentage of your gross income do you save?
Old 10-25-2005, 11:03 AM   #26
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Re: What percentage of your gross income do you save?

Taxes: 26%
Spending: 31%
Savings: 43% (counting employer 401k contributions)

I live a modest suburban lifestyle with a family of 6, and I can't pull it off for only $50k. *The average income in my county is about $70k, and, considering that many people spend over their income, and what you think of as the typical suburban family (middle-age breadwinner or two with children) has a higher than average income, you have to get significantly over that amount make it easy to save money and still "fit in." *You can do it, it's just not as easy.
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Re: What percentage of your gross income do you save?
Old 10-25-2005, 12:58 PM   #27
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by brewer12345

SLC, what is up with the icon?* I think its hysterical, but appears to be meaningless.
Admittedly, the "meaning" is hard to recognize or interpret.* I could wax poetic for hours about the cosmic significance of Moofie and the "all your base are belong to us" phenomenon, but perhaps the best way for you to learn about them is for you to check out a little research on these subjects.* Then, and only then, will you truly understand.

If you're curious about the dogcow picture, these links will provide you with a decent primer:*

http://whatis.techtarget.com/definit...211983,00.html

http://en.wikipedia.org/wiki/Dogcow

http://www.storybytes.com/moof.html

For info on the "all your base" phenomenon, check out:

http://en.wikipedia.org/wiki/All_you...e_belong_to_us

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Re: What percentage of your gross income do you save?
Old 10-25-2005, 01:29 PM   #28
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Re: What percentage of your gross income do you save?

I saved 42% of my base salary this year. If we take bonuses similar to what the past few years have been, it will be more like 32% of my total gross. This doesn't include the whopping 3% company match. :

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Re: What percentage of your gross income do you save?
Old 10-25-2005, 06:55 PM   #29
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Re: What percentage of your gross income do you save?

I think the better way to pose this poll is with after tax income since the tax rates can vary significantly as evidenced by some of the posters. Not much we can do about those taxes; definitely envious of those 8% rates.
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Re: What percentage of your gross income do you save?
Old 10-25-2005, 07:29 PM   #30
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Re: What percentage of your gross income do you save?

Perhaps the best question is:

Relative to your expenses (burn rate) what percentage are you saving ?

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Re: What percentage of your gross income do you save?
Old 10-25-2005, 08:17 PM   #31
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Re: What percentage of your gross income do you save?

As a single person, I spend $38k - $42 per year, after taxes. This has been consistent for the last 5 years. My housing cost is very low, relatively, but my travel/fun budget is pretty high.

In addition I'm putting $14k in 401(k) + $4,000 in Roth + +/-$10k stock fund = $28k.

That's about 75% of what I spend. If the balance in the checkbook gets too high I put more into the stock fund, so the $10 is just a guestimate might be more this year.

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Re: What percentage of your gross income do you save?
Old 10-26-2005, 12:07 PM   #32
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MasterBlaster
Perhaps the best question is:

Relative to your expenses (burn rate) what percentage are you saving ?
That's how I look at it for the DW and I.* So far this year, we're running our savings at 105% of what we spend (not incl. 401k match).* It helps me keep in perspective the spending vs saving trade-off.
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Re: What percentage of your gross income do you save?
Old 10-26-2005, 12:36 PM   #33
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MasterBlaster
Perhaps the best question is:

Relative to your expenses (burn rate) what percentage are you saving ?
I spend X each month and I save the same amount: 100%.

Martha: I think $50k is a good number for a family if you're not on the coasts.
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Re: What percentage of your gross income do you save?
Old 10-26-2005, 01:12 PM   #34
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Re: What percentage of your gross income do you save?

Since I've gone to part time, I'm saving somewhere around 10%, when I was working full time, varied from 10% to 75% (depending on actual income). In reality, have to LBYM to even hope to qualify to be a member of the FIRE community.

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Re: What percentage of your gross income do you save?
Old 10-26-2005, 01:19 PM   #35
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by SLC Tortfeasor
I see some people actually save more than 60% of their gross incomes.* I find that amazing.* How do you do it?* Do you have extremely high incomes?* Live like paupers?* Already have the house paid off?
SLC
I always understood that with no pension I would have to cover all retirement expenses and therefore in good years, always put the majority of income into retirement allocated assets (deferred compenstion vehicles such as IRA, 401K--depending on where I was working at the time, or real estate/stocks for the balance).
We never lived like paupers, but were also not extragavent in our lifestyle, even when our income/net worth would allow it.
Put kids through school (made them pay part), always traveled, ate at good restaurants, drank some very good whiskey, but we (DW and I) knew that we had to prepare for the future.
I suspect, after being on this board for a while, that just about everybody else here prepared in some way.
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Re: What percentage of your gross income do you save?
Old 10-26-2005, 11:22 PM   #36
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MasterBlaster
Perhaps the best question is:

Relative to your expenses (burn rate) what percentage are you saving ?

OK - Approximately,we save 64% of our total gross income and spend 28%, so relative to expenses our savinng rates is (64/28)*100= 229%.

Quote:
Originally Posted by TargaDave
Not much we can do about those taxes; definitely envious of those 8% rates.* *
I should expand to say that the 8% I paid last year was only on "earned" income only i.e. salary.

Our income from dividends, capital gains on sale of property(provided owned for 2 years),* interest* etc is not taxed at all.* *

Cheers,

Honkie

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Re: What percentage of your gross income do you save?
Old 10-27-2005, 05:38 AM   #37
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Re: What percentage of your gross income do you save?

I'm really inspired by you guys and these massive savings rates.* I have a feeling some of you are adding up just total savings which isnt all necessarily earmarked specifically for retirement, but thats besides the point, you guys are still doing outstanding.

Its clear how some of you reallly are going to pull off a late 30s or 40s escape from the workforce.

I'm probably going to end up sticking with just my very modest 15-20% of gross (for retirement), which is nothing close to most of you, but most likely blows most everyone away where I work.* *Seems like i heard the national savings rate just fell below 0%.*

Unfortunately, i have stuff that breaks or gets damaged, liked appliances or roofs that needs new shingles, or machines that wear out like cars, so i have to "save" large sums of money for other stuff too. I have a little 2 year old i'm presuming doesnt want to borrow everything for college someday too, so there's some more non-retirement savings there.
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Re: What percentage of your gross income do you save?
Old 10-27-2005, 07:06 AM   #38
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Re: What percentage of your gross income do you save?

Pre retirement, -0-
Post retirement, -0-

Never had a structured savings plan in my lifetime, unless you count the brief period when I was in a 401K.

JG
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Re: What percentage of your gross income do you save?
Old 10-27-2005, 08:53 AM   #39
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by azanon
I have a feeling some of you are adding up just total savings which isnt all necessarily earmarked specifically for retirement, but thats besides the point, you guys are still doing outstanding.
I've had a hard time making this differentiation. My way of looking at it is that I save everything I don't need/want to spend.* It's all for retirement, unless I have to spend it before I retire, then it's not. For example I will need want a new car before I retire.* So that money won't be for retirement. If I go on a trip I'll spend a few $K that is currently in my cash fund.* But it's not* considered as separate savings.* * But I don't have kids, potentially dependent parents or any other things that I can see needed to save for.* * I do plan to do a major bathroom remodel.* I just look at that as a decision to spend a years worth of retirment living costs on living now, and recognize it reduces the overall long term pot.* KWIM?
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Re: What percentage of your gross income do you save?
Old 10-27-2005, 09:05 AM   #40
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Re: What percentage of your gross income do you save?

I guess I could break down my total savings into separate categories. Of the roughly $33,600 I'm putting away this year, $4000 is going into a Roth IRA, $14,000 into my 401k, and $15,600 into automatic mutual fund investments. So of my income that should come out to around $52,000 this year, roughly 35% (the Roth + the 401k) is dedicated to retirement.

However, the $15,600 that's going into mutual funds is money that I have no intention of touching unless I really had to, so I consider it to be part of my retirement. Besides, I can't touch the 401k and Roth until I'm like 59.5 years old, I'm kinda counting on my non-retirement investments to help me to ER, since 59.5 is hardly ER
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