Okay...Let's Get To The Meat...

[Tommy_Dolitte]

How many DOLLARS per year do you target to save/invest over time?

Me...$25000....
*currently trending 4% over plan*

8)

 

[unclemick]

About 10-15k/yr which is stupid, since we're already eleven years into ER - old habits are hard to break.

Of course - I tell myself I'm actually spending - on hobby stocks.

heh heh heh heh Sanity was never one of my strong points..

 

[gindie]

Total $30,000, of which approx. $6,000 is employer contributions.

 

[KB]

I normally max out my 401K and Roth IRA and have some matching from my employer. I also save some in my MM account. This year I paid cash for a new house so was not able to hit both goals yet, still working on it.

I'd say I save 25K in a good year. But I'm still working....

 

[Cut-Throat]

About 10-15k/yr which is stupid, since we're already eleven years into ER - old habits are hard to break.  

Of course - I tell myself I'm actually spending - on hobby stocks.

heh heh heh heh Sanity was never one of my strong points..

Unclemick,

This is a bit confusing as I thought you didn't work? Are you talking about re-investing dividends?

 

[MikeK]

$40K minimum but also put in a portion of my bonuses and stock option gains. I consider those 'icing on the cake' and feel fine spending part of them on fun activities (new car, extra vacation).

Mike

 

[Calgary_Girl]

Hubby and I save $50,000/year (combined) in our retirement accounts and outside of our retirement accounts in various mutual funds.

 

[Skylark]

Good Q

Lessee...

$13,000 457 plan
$3,000 Roth
$1,800 additional investments
Total cash investments: $17,800

Other "investments"
$2500 defined benefit retirement plan

real property investments
$9600 home mortgage
$4,200 condo boat slip fee payoff (could be rental)

Total dollars going into equities and appreciating assets: $34,000

 

[brewer12345]

Not to be too nitpicky, but what's your definition here?

At the moment, I look at dollars used to increase net worth, which includes the principal portion of debt paydown, less any cash I siphon off my investments to pay expenses. So every month, we pay 1000 in mortgage principal, 550 in car loan principal, maybe 125 in student loan proncipal. We also toss in 1200 into the 401k. Every year we fund Roths at 6000 and I get an employer dump-in to the 401k of about 6000. So gross is 46500. Depending on how my wife's side business goes this year, we may have some extra cash to start contributing to a solo 401k, which will be funded with the max allowed. Offsetting this is the fact that I siphon off a few bucks from my after tax account every so often because cash flow doesn't quite keep up with payouts from time to time, mostly because of the debt payments. I'd guess I probably tap 8 to 10 grand a year for this. Net is probably about 36000 a year, pluys whatever we toss into the solo 401k.

 

[Bob_Smith]

I'm ER'd now, but last year I wasn't. Here is what we saved in 2003 (both wife and I with one child still at home):

--Retirement Plans (403b, SIMPLE, IRAs) - $33,579
--Taxable Savings - ~$10,000
--Total saved - $43,579

 

[Saver to Spender]

It's not just what you save, but also what you spend. Therefore you need to look at your total growth in net worth. I have been increasing my total net worth by about $50K a year.

 

[goofy]

OK, I'll play, but I'll only post this anonymously.
I probably save $50,000/yr, plus any bonuses/
commissions that I may receive. This could up
this amount quite a bit.

 

[John Galt]

I look at this like "spender to saver', i.e.
I tracked my increase in net worth. I am not
really "saving" now (although my net worth has not
started down yet 6 years into complete retirement),
and may never if we are frugal and lucky. When I was
working, I didn't really "save" at all, so the pile I ERed
on was accumulated by accident MOL.

John Galt

 

[dm]

I am one who also tracks my gains in net worth. I have been tracking this since 1998. My worse year was 2000, only gained about $9000. I was heavy into tech stocks, It was a good learning experience. My best year was last year, $108,000. I have averaged $50,000 since 1998.

I'm planning on ER next year. The wife is going to continue working 4 or 9 more years. It depends on her pension payout and on if she wants to. She is one of those types that loves her job. She would work for free. We still think we can increase our net worth $35000 to $50,000 a year. A couple of our big expenses will hopfully be on their own in a couple of years and that should help alot.

 

[unclemick]

Cut_Throat

Yeah - I know I'm mixing apples and oranges - Pensions + SS(mom's) + hobby divs + IRA SEC yield(mine/hers) reinvested + step daughter in spare room = a sum of income streams - total expenses = savings. Actually it's a bigger number since I wasn't counting the last two. I guess we'd better get off our butts and start spending. Although - I do like cheap.  

Not a good accounting method but bottom line, I try to put excess cash into dividend stocks.

As to net worth - I loosely tracked that during the accumulation phase and since ER tend to concentrate on income plus income growth. And because of the passage of time, inflation, and compounding - $ no.'s are higher now. In 1966 on an 8k salary - saving $100 -200/mo was a monumental source of pride. Today that looks puny - but I always liked that 'time in the market, not market timing' phrase.

 

[SDY888]

After tax, 56% of our income goes directly to various savings accounts, funds etc. and includes paying off capital on mortages.
After living expenses etc have been taken, on average we can stash another $1000 - 1200 per month.

Every one has a different income and expenditure profile, so one shouldn't be distracted by the absolute dollar amounts - THE important number is the percentage of saving vs spending and how this equates to your ER nest egg accumulation and the ultimate ability to live comfortable on the income / drwa down derived therefrom.

Simon888

 

[unclemick]

The real meat is the earliest $ and how long have you been at it. Remember all the compounding examples about the one who saved ten years and stopped vs the one who started ten years later and saved three times as much for thirty years. I started late and ER'd at forty nine - but my IRA made three times as much in the last ten years as I'd saved and invested the previous sixteen.

Time in the market, not market timing. 85 - 90% of our ER stash came from auto ded - $ cost averaging - boring, boring, boring.

DeGaul was right.

 

[Whakamole]

I recently got a much better paying job than I had the last few years - and haven't spent the difference.

I'm saving about $3K a month.

 

[deserat]

I set goals - this year was 3k-3.5k per month plus max out TSP plus max out Roth plus throw in a bond a month ($100) - overall came out to about $52K. I make myself live on the rest.

Deserat

 

[John Galt]

Hello Deserat! I admire you. Wish I had done it that way.

John Galt

 

[unclemick]

Derserat - you're saving more than I ever made in total income the bulk of my working career - except the last five years maybe.

Which brings me back to the real meat. Anyone looked at compounding spans. My original was a single sheet of graph paper compounded at 7.95% from 1976 - 2006, age 63. I used a weighted asset class growth method (T. Rowe Price Phd, AAII chapter meeting) - before I'd ever heard of MPT, Bernstein. Blind luck - our 401k had 500 index.

Love that compounding curve.

 

[deserat]

Thanks, John and unclemick;

I read a long time ago where they did a comparative study on Harvard grads between those who wrote down their goals; short-term and long-term; versus those who didn't - the writers met and exceeded their goals.

Now every year, I write down my goals and review the last year's as well as track the long term ones. Amazing how the physical manifestation of a thought onto a piece of paper can motivate a person.

Those goals are not just monetary.

As for my savings goals----I am trying to see how little I can live on while still enjoying my lifestyle. I don't have any children and don't have any debts except my house, which is appreciating very nicely right now. I've read many financial management books and found that saving money and lowering ones lifestyle expectations are perhaps the most important keys to being able to retire early.

My definition of retirement is being able to do what I want with my time - if that means trading it for some more money, then fine, but not *having* to do that is the key for me.

And the mantra above is what this BBS (I'm dating myself with that moniker) sings at choir practice everyday

Thanks again to all for your great ideas and dialogue - sure helps me....

Deserat

 

[bow-tie]

My definition of retirement is being able to do what I want with my time - if that means trading it for some more money, then fine, but not *having* to do that is the key for me.
Deserat

Amen to that....

Our goals are approx 35% of gross to ER... but total savings are approx 40%+. Gotta get that house paid off...

Debt is so overrated