When people talk about putting away 10, 15, 20.. percent of their total income into retirement - I'm getting confused calculating my own.
I make with bonus about $96k a year, with take home around 66k after taxes & 401k paid. I have 6% of my income routed to my company sponsored 401k to get the match (effectively matching 5%). I also am contributing the max $5500 to a Roth IRA.
To calculate 'my total percentage of income to retirement' I get that I add the 401k & match contributions to get 11%, but I am essentially taking $5500/$66000 (after tax/401k - takehome) to get 8.35% to get my Roth IRA contributions for a total 19.35% of income going to retirement. Is this accurate?
Sorry if I sound ignorant. I started my 401k last year and my Roth IRA this year and still learning.
I make with bonus about $96k a year, with take home around 66k after taxes & 401k paid. I have 6% of my income routed to my company sponsored 401k to get the match (effectively matching 5%). I also am contributing the max $5500 to a Roth IRA.
To calculate 'my total percentage of income to retirement' I get that I add the 401k & match contributions to get 11%, but I am essentially taking $5500/$66000 (after tax/401k - takehome) to get 8.35% to get my Roth IRA contributions for a total 19.35% of income going to retirement. Is this accurate?
Sorry if I sound ignorant. I started my 401k last year and my Roth IRA this year and still learning.