livingalmostlarge
Recycles dryer sheets
- Joined
- Feb 8, 2014
- Messages
- 334
Can you retire saving only 15% of salary for retirement? Would this hypothetical budget work?
If we made $100k
2 kids, MFJ
Gross $100,000.00
401k -$17,500.00
Fed Taxes -$5,237.50
SS -$6,250.00
Medicare -$1,500.00
Income $69,512.50
Roth IRA -$11,000.00
529 -$4,000.00
Living $54,512.50
Monthly Budget $4,542.71
Realizing that I'm not sure what medical premiums would be, and assuming a savings rate of 28.5%, instead of 15%, could this work? I did no state income taxes because I want to live in WA.
Now I realize that at this income level I'm not sure the Roth IRA is better than 401k since it drops income into 15% tax bracket. But assuming a 15% to retirement we would have more monthly as well. Could we at age 35ish afford to scale back to 15% retirement savings and still retire by 55?
If we made $100k
2 kids, MFJ
Gross $100,000.00
401k -$17,500.00
Fed Taxes -$5,237.50
SS -$6,250.00
Medicare -$1,500.00
Income $69,512.50
Roth IRA -$11,000.00
529 -$4,000.00
Living $54,512.50
Monthly Budget $4,542.71
Realizing that I'm not sure what medical premiums would be, and assuming a savings rate of 28.5%, instead of 15%, could this work? I did no state income taxes because I want to live in WA.
Now I realize that at this income level I'm not sure the Roth IRA is better than 401k since it drops income into 15% tax bracket. But assuming a 15% to retirement we would have more monthly as well. Could we at age 35ish afford to scale back to 15% retirement savings and still retire by 55?