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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 10-28-2005, 02:12 PM   #61
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by justin
So are you having 12% of your pay withheld and your wife is having 20% of her pay withheld? If so, you're total retirement savings rate isn't 32%, but something less.* For example, if your income plus your wife's income is $112,500 and you put 32% of that into 401k's, you've maxed your 401k's for the year (assuming 18,000 per person with the over 50 catch up provisions).* If your incomes are higher than $112,500, then you couldn't have put in 32%, you'd exceed the max.* What you're saying is the two of you don't make more than $112,500?* I thought you had alluded to making much more than that?* Or are you really not contributing 32%?* Maybe Texas Proud has you figured out??
Our incomes are dissimilar and we are both over 50 so we are able to add additional amounts to our 401ks. Income includes bonus income and this is added to our retirement accounts. Remember that there are pre and post tax categories for retirement accounts. We have maxed ours out. The pretax 401k is 20% by itself The other 12% is from after-tax and bonuses being added to various retirement accounts. That is where the 32% comes from.

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Re: What percentage of your gross income do you save?
Old 10-28-2005, 04:21 PM   #62
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by SteveR
I would say that you need another way to look at this.* If you are including ONLY what you can put in your retirement plans offered by your employer or personal IRAs and other specific Fed. recognized retirement plans, then you are not counting other areas that lead to FIRE.

In my case, these "savings" are from only wages:
DW 401k=20%
My 401k=12%

Total "retirement" savings=32%
So you're saying that 20% of your combined gross wages goes into your DW's 401K and 12% of your combined gross wages goes into your 401K?

Just clarifying because when I first read this I thought you were saving 12% of your income and your wife 20% of her income and that wouldn't be additive.
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Re: What percentage of your gross income do you save?
Old 10-28-2005, 06:45 PM   #63
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by justin
A debt-free family in a low cost of living area living the simple life can easily live on $26,000 after tax a year and have plenty.* *
Sure they can!!

ha
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Re: What percentage of your gross income do you save?
Old 10-28-2005, 06:48 PM   #64
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MRGALT2U
I am not disputing your post, but I was close to 140K per year
(counting bennies) for several years, and I am more than content
at 26K gross (for 2).* In fact, it was easy.

JG
You forgot John, different years.

Ha
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Re: What percentage of your gross income do you save?
Old 10-28-2005, 07:00 PM   #65
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Re: What percentage of your gross income do you save?

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Originally Posted by HaHa
You forgot John, different years.

Ha
I don't get it. What is your point?

JG
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Re: What percentage of your gross income do you save?
Old 10-28-2005, 07:03 PM   #66
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by HaHa
Sure they can!!

ha
Hey Ha (like the sound of that). Are these cocktail hour posts?
For some reason your posts are becoming inscrutable. Is it on purpose, or
are you "losin' it" ?? Inquiring minds want to know.

JG
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Re: What percentage of your gross income do you save?
Old 10-28-2005, 07:17 PM   #67
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MRGALT2U
I don't get it.* What is your point?

JG
Well, if you insist. I think the point of the OP was that if you make $140,000 in salary in say 2004, it is awfully hard to sell your wife, your children, and yourself on the idea that it might be fun to live on $26,000- less for example than the typical alcoholic handyman or attendant at the town trash compactor.

However, having made (and spent, as per JG) $140,000 in some prior year does not have the same meaning. Partly because you no longer have kids to support, partly because you have no choice.

Capisc' ?

And as regards my comment, "Of course they can" it has the same meaning as most of my other sarcasm that on occasion escapes onto this board. A family? $26,000? And I can run 100M in 10 seconds, all it requires is the desire. If I can't do it, I must not have sufficient desire.

Ha
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Re: What percentage of your gross income do you save?
Old 10-28-2005, 07:27 PM   #68
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by HaHa
Well, if you insist. I think the point of the OP was that if you make $140,000 in salary in say 2004, it is awfully hard to sell your wife, your children, and yourself on the idea that it might be fun to live on $26,000- less for example than the typical alcoholic handyman or attendant at the town trash compactor.

However, having made (and spent, as per JG) $140,000 in some prior year does not have the same meaning. Partly because you no longer have kids to support, partly because you have no choice.

Capisc' ?

And as regards my comment, "Of course they can" it has the same meaning as most of my other sarcasm that on occasion escapes onto this board. A family? $26,000? And I can run 100M in 10 seconds, all it requires is the desire. If I can't do it, I must not have sufficient desire.

Ha
You didn't help much (and you should leave the sarcasm to those who
can do it properly). I say again............supporting a family in 2005
on $26,000 gross is a slam dunk. It's possible you are too dense to do it
I suppose. Anyway, many will not do it. That doesn't mean it can't be done.

JG
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Re: What percentage of your gross income do you save?
Old 10-28-2005, 07:52 PM   #69
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MRGALT2U
You didn't help much (and you should leave the sarcasm to those who
can do it properly).* I say again............supporting a family in 2005
on $26,000 gross is a slam dunk.* It's possible you are too dense to do it
I suppose.* Anyway, many will not do it.* That doesn't mean it can't be done.

JG
Right, Mr. Mogul. BTW, how many days until you can get your SS?

Ha
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 12:21 AM   #70
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by HaHa
And as regards my comment, "Of course they can" it has the same meaning as most of my other sarcasm that on occasion escapes onto this board. A family? $26,000? And I can run 100M in 10 seconds, all it requires is the desire. If I can't do it, I must not have sufficient desire.

Ha
A DEBT-FREE family with $26000 AFTER TAX. No mortgage, no car loans, no student loans, no credit card debt.

Add in some debt and you can reach the median family income of a 4 person family in Arkansas or Oklahoma.
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 12:26 AM   #71
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by eridanus
A DEBT-FREE family with $26000 AFTER TAX. No mortgage, no car loans, no student loans, no credit card debt.

Add in some debt and you can reach the median family income of a 4 person family in Arkansas or Oklahoma.
I bet it is even cheaper than that in Afghanistan, as long as you stay out of the cities.*

Ha
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 12:41 AM   #72
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by HaHa
I bet it is even cheaper than that in Afghanistan, as long as you stay out of the cities.

Ha
Well, true. A family could also significantly hurry FIRE if they buy a house in inner-city Detroit. There's a 1200 square foot 3-1 for $40,000 on realtors.com. Does paying protection money to the local gang count as tax?
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 05:00 AM   #73
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Re: What percentage of your gross income do you save?

IMHO a family cannot live a reasonably middle class lifestyle in this country on $26,000 a year unless this is no debt and full health insurance.
If the family has to pay for health insurance or health care as well, can't be done.

Uncledrz
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 05:31 AM   #74
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by uncledrz
IMHO a family cannot live a reasonably middle class lifestyle in this country on $26,000 a year unless this is no debt and full health insurance.
If* the family has to pay for health insurance or health care as well, can't be done.

Uncledrz
Don't agree at all, but on the health insurance/health care you do have to be
somewhat lucky and creative. We are doing it and have been for some time.
Not only can it be done, it's not even all that difficult.

JG
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 05:50 AM   #75
 
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MRGALT2U
you do have to be
somewhat lucky and creative.* We are doing it and have been for some time.
Not only can it be done, it's not even all that difficult.

JG
What have you been doing for health insurance? I understand the lucky part. But what is the creative part? Thanks -- HH
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 05:54 AM   #76
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by HaHa
Right, Mr. Mogul. BTW, how many days until you can get your SS?

Ha
315................
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 06:03 AM   #77
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by ProfHaroldHill
What have you been doing for health insurance?* I understand the lucky part.* But what is the creative part?* Thanks -- HH
Well, I did not mean for the "creative" part to apply only to the aspect of
getting health care/insurance. However, I will answer as if I did, as that's the way my post read.

Right now we have what amounts to a Medicare supplemental policy
even though neither of us is on Medicare. It's okay for some stuff
but lots is not covered at all and the limits on "disasters" are pretty
low. We also have cancer coverage, with similar limitations.
Otherwise, I shop and negotiate, and I also try to find ways to
protect our assets in the event of a total meltdown health-wise. I wish
we just had decent catastrophic coverage. Maybe I will test the
waters again.

JG
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 03:29 PM   #78
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Re: What percentage of your gross income do you save?

Quote:
Originally Posted by MRGALT2U
You didn't help much (and you should leave the sarcasm to those who can do it properly).* I say again............supporting a family in 2005 on $26,000 gross is a slam dunk.* It's possible you are too dense to do it I suppose.* Anyway, many will not do it.* That doesn't mean it can't be done.
Quote:
Originally Posted by MRGALT2U
Don't agree at all, but on the health insurance/health care you do have to be somewhat lucky and creative.* We are doing it and have been for some time.* Not only can it be done, it's not even all that difficult.
Quote:
Originally Posted by MRGALT2U
315................
Quote:
Originally Posted by MRGALT2U
Well, I did not mean for the "creative" part to apply only to the aspect of getting health care/insurance.* However, I will answer as if I did, as that's the way my post read.
Right now we have what amounts to a Medicare supplemental policy even though neither of us is on Medicare.* It's okay for some stuff but lots is not covered at all and the limits on "disasters" are pretty low.* We also have cancer coverage, with similar limitations.* Otherwise, I shop and negotiate, and I also try to find ways to protect our assets in the event of a total meltdown health-wise.* I wish we just had decent catastrophic coverage.* Maybe I will test the waters again.
JG,

* * *Many of your rants posts strike me as the repetitive pounding of a piano with a pretty small keyboard, which is even more amazing considering that you've managed to put up a greater quality quantity of posts than anyone else on E-R.org.* And when you lob those hand grenades you come across as a real PITA worthy of the image evoked by your Ayn Rand avatar.

* * *However I've recently realized that you provide a valuable service to the Young Dreamers, and indeed a cautionary example to all ERs.* You've already described your two properties, your boat fleet, and your no-stock portfolio so I don't need to run on about that.* You've presented your history as a captain of industry with a six-figure income, no doubt due to your Mensa-eligible potential and your unparalleled personnel skills.* You've mentioned many many times that you were able to turn your back on your soaring career & your profligate ways to ER with little or no planning and possibly even less money.*

* * *You've frequently admonished YDs that if you were able to ER then they should be able to follow your example without wasting all their angst (and their leisure time) on planning, saving, allocating investment assets, or budgeting.*

* * *Yet I've noticed there are other aspects of your lifestyle that haven't received quite as much publicity as the "just do it" refrain:
- Your spouse brings home an income.
- You're counting the days until Social Security spews forth its manna upon your net worth.
- You're eagerly anticipating your eligibility for a reverse mortgage despite its high origination fees.
- You appear to be constantly on the prowl for real estate "deals", apparently with (unspecified) financing schemes that would make Carleton Sheets blush in admiration.
- You seem to spend quite a bit of time arbitraging credit-card company's zero-interest offers in short-term CDs where the risks of omission (or missing a deadline) are at least as expensive as the rewards.
- You spend a considerable portion of your time tracking CD rates.
- You eschew online banks & credit-union CDs for their lack of FDIC insurance, despite their equivalent insurance from NCUA (another govt-backed entity).
- You're enamored of bonds yielding 8% or more from companies whose future appears grim, if indeed they have a future, while TIPS index funds and many stock index funds provide equivalent returns with much less volatility & survivability risk.
- You spend even more time than me on dumpster-diving and on picking up discarded items with the potential to be repaired & resold.* (Presumably none of them are scanners.)
- You have bare-bones health insurance and are even more eagerly anticipating Medicare than SS.
- You repeatedly advocate a low-spending minimalist lifestyle that would make Amy Dacyczyn green with envy.
- Your LTC insurance policy appears to involve firearms.

* * *Despite your seemingly blissful fishing trip down the river of life, you could be accused of spending far more time obsessing working on your finances than those whom you abjure for their excessive planning.* Your perpetual focus on obtaining more money (and on reducing your expenses) seems to occupy quite a bit more of your high-IQ intellect (and ER "leisure" time) than any other two posters on the board combined.* In fact, from reading your posts it could be postulated that your margin of financial safety is razor-thin.* But, hey, with your intellect you must have made the ER plunge in anticipation (in more ways than one) of that ride.

* * *So I think you're providing a valuable service to those YDs who hear your exhortations and wonder if they're ready to emulate your example.* When they look at how you're spending your time and your mental energy, and the austere schemes that you feel obligated to pursue well into your 60s, I think it inspires them to waste devote even more of their valuable time to planning, saving, investing, and budgeting.* When I'm tempted to take on some arbitrage scheme with a profit potential below the equivalent of minimum wage, you're in my thoughts.* I'm sure the rest of the board could cite many times in our financial lives when one of your examples comes to mind.* In your own inimitable (hopefully) way, you're making sure that all of us ER with enough resources to choose the lifestyle that we have want to live.* Thank you for living the way you do on our behalf!
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 04:12 PM   #79
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Re: What percentage of your gross income do you save?

As far as JG's ER strategy goes I say to each his/her own (if it actually works). I would much rather, as Nords mentioned, have a choice in how live in ER. Planning for ER, to me, is just like managing a business in the sense that both require subtantial planning, budgeting & research in order to ensure any degree of success. If tracking investments, expenses, asset allocation and income improves my chances of being "right" when I decide to ER then I am happy to do it.
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Re: What percentage of your gross income do you save?
Old 10-29-2005, 04:53 PM   #80
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Re: What percentage of your gross income do you save?

DH and I currently save 40% of our combined gross income every month between our retirement and taxable accounts. We have high incomes but we also live within our means and have no desire to keep up with the Joneses by driving flashy cars or living in a McMansion.
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