Deleted
Joined: May 3, 2024 20:55:12 GMT -5
Posts: 0
|
Post by Deleted on Feb 26, 2011 1:12:50 GMT -5
I keep on hearing how you should max your 401K asap this way you get used to not having the money... which in theory sounds good.
But that would mean my wife and I would need to contribute 31% of my income and 39% of my wife income to our respective 401K.
So for those that max their 401K, what percentage of your gross income does it represent? Even if you are not maxing your 401k, what percentage of your income are you contributing to your 401k?
Both my wife and I are contributing 20% to our 401K .
|
|
lynnerself
Senior Member
Joined: Jan 3, 2011 11:42:29 GMT -5
Posts: 4,166
|
Post by lynnerself on Feb 26, 2011 2:46:36 GMT -5
Currently I max out my 401K and it is about 30% of my gross pay. But at your age I was only at 5 to 10%.
|
|
bobosensei
Well-Known Member
Joined: Dec 21, 2010 11:32:49 GMT -5
Posts: 1,561
|
Post by bobosensei on Feb 26, 2011 5:32:57 GMT -5
DH puts in 26%
I'm out of work right now, but to make up for the loss to my 401k contributions DH and I put in extra to our taxable investments.
|
|
patchwork150
Junior Member
Joined: Dec 23, 2010 19:01:28 GMT -5
Posts: 240
|
Post by patchwork150 on Feb 26, 2011 6:25:03 GMT -5
I put in 6% and am 23... but, I am still in college and I work. Maxing out my 401k is not ok for me at this stage in life (gotta pay bills!). I thought I was doing good at 6%, since you can only start depositing when you are 21, and I started off with the minimum (3%?) and have slowly increased the %...
|
|
Waffle
Senior Member
Joined: Jan 12, 2011 11:31:54 GMT -5
Posts: 4,391
|
Post by Waffle on Feb 26, 2011 6:55:14 GMT -5
I feel really behind now. I put in 16% and I'm 50. I've made many a stupid money decision over the years, and now I'm working on paying down my debt which takes roughly another 15% of my gross.
|
|
hodap2001
New Member
Joined: Jan 8, 2011 11:45:54 GMT -5
Posts: 6
|
Post by hodap2001 on Feb 26, 2011 7:02:48 GMT -5
I put 6% towards my 401K plan and my employer matches 5%.
|
|
plugginaway22
Well-Known Member
Joined: Jan 2, 2011 10:18:42 GMT -5
Posts: 1,656
|
Post by plugginaway22 on Feb 26, 2011 8:20:10 GMT -5
DH and I are both contributing 15%, but we are 50 and started late with retirement savings. Goal is to increase this as much as possible, and each quarter we re-evaluate and bump it if we can.
|
|
SVT
Well-Known Member
Joined: Dec 20, 2010 15:39:33 GMT -5
Posts: 1,491
|
Post by SVT on Feb 26, 2011 8:57:17 GMT -5
If I were to max it, I'd have to contribute like 29%.
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 26, 2011 9:39:57 GMT -5
I contribute 15%, and last year reached the max. in November. It's nice to see that big jump in net pay after maxing the 401(k), just in time for the holidays. This year, I'll reach the max most likely in October. I will probably cut back the percentage a little bit next year should that happen. To date, I am at $5,597 in 401(k) contributions for 2011. Total for last year to all retirement accounts was nearly $34K. My wife does not work FT and has no 40(k) or anything, but we max her Roth. We are still hoping for early retirement (55?), but it will be very tough unless stocks really pick up in the next 15 years.
|
|
Deleted
Joined: May 3, 2024 20:55:12 GMT -5
Posts: 0
|
Post by Deleted on Feb 26, 2011 9:46:51 GMT -5
I'm doing 12%, plus a 6% match from company. I'd have to contribute around 30% to max.
|
|
whispering17
Junior Member
Life is short...eat dessert first!!
Joined: Dec 30, 2010 22:35:38 GMT -5
Posts: 197
|
Post by whispering17 on Feb 26, 2011 10:34:39 GMT -5
I max mine out each year with a 29% deduction. My employer matches 3%
|
|
Deleted
Joined: May 3, 2024 20:55:12 GMT -5
Posts: 0
|
Post by Deleted on Feb 26, 2011 11:10:33 GMT -5
We do not max. DW and I each contribute 8%. If I get a bonus, my company lets me choose how much of that I want to contribute, that may change my overall percentage up or down depending on how much of that I contribute.
|
|
gooddecisions
Senior Member
Joined: Dec 22, 2010 13:42:28 GMT -5
Posts: 2,418
|
Post by gooddecisions on Feb 26, 2011 11:14:29 GMT -5
I contribute 15%, and last year reached the max. in November.
Schildi, does your employer still contribute after you've reached the max? My employer only matches if you are contributing so I have to do my best to avoid maxing it out before the end of the year and missing out on the match. According to my calculations, if I were to continue contributing what I am, I would reach the limit by October so I'm going to have to make an adjustment to avoid that.
My contributions are currently at 30%, but I try not to focus on precentage of gross pay and just focus on achieving the maximum contribution allowed while making sure I don't max it out before the end of the year.
|
|
WannabeWealthy
Established Member
Joined: Dec 27, 2010 12:25:17 GMT -5
Posts: 357
|
Post by WannabeWealthy on Feb 26, 2011 11:17:42 GMT -5
I contribute 15%, and last year reached the max. in November. It's nice to see that big jump in net pay after maxing the 401(k), just in time for the holidays. This year, I'll reach the max most likely in October. I will probably cut back the percentage a little bit next year should that happen. To date, I am at $5,597 in 401(k) contributions for 2011. Total for last year to all retirement accounts was nearly $34K. My wife does not work FT and has no 40(k) or anything, but we max her Roth. We are still hoping for early retirement (55?), but it will be very tough unless stocks really pick up in the next 15 years. Your numbers don't make sense. If you maxed 401k ($16,500) last year in November. How could you be already at $5,600 for 2011 and it's not even March yet? Are you putting in over $2,500/month in 401k? You'd reach max WAY before October or November this year.
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 26, 2011 11:18:14 GMT -5
I contribute 15%, and last year reached the max. in November.Schildi, does your employer still contribute after you've reached the max? My employer only matches if you are contributing so I have to do my best to avoid maxing it out before the end of the year and missing out on the match. According to my calculations, if I were to continue contributing what I am, I would reach the limit by October so I'm going to have to make an adjustment to avoid that. My contributions are currently at 30%, but I try not to focus on precentage of gross pay and just focus on achieving the maximum contribution allowed while making sure I don't max it out before the end of the year. No, my employer does not "match" at all. The company pays their share into my retirement depending on profits, and independent of whether I pay or not, or how much and when I pay. So even if I were to contribute $0 for any given year, my employers contribution would be unchanged.
|
|
WannabeWealthy
Established Member
Joined: Dec 27, 2010 12:25:17 GMT -5
Posts: 357
|
Post by WannabeWealthy on Feb 26, 2011 11:19:09 GMT -5
OP, Nice way to get what everyones salary is. I contribute 13%. -M
|
|
binl1908
Junior Member
Joined: Jan 11, 2011 12:47:13 GMT -5
Posts: 114
|
Post by binl1908 on Feb 26, 2011 11:20:32 GMT -5
I contribute 17% and reach the max in the fall. My employers contribution is a 50% match up to $2500 dollars max, so my employer stops contributing in the Spring. It's good for me as I plan on leaving this company later this spring and will have gotten a full match before I go. I've already maxed my 2011 Roth accounts for myself and DW.
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 26, 2011 11:20:39 GMT -5
I contribute 15%, and last year reached the max. in November. It's nice to see that big jump in net pay after maxing the 401(k), just in time for the holidays. This year, I'll reach the max most likely in October. I will probably cut back the percentage a little bit next year should that happen. To date, I am at $5,597 in 401(k) contributions for 2011. Total for last year to all retirement accounts was nearly $34K. My wife does not work FT and has no 40(k) or anything, but we max her Roth. We are still hoping for early retirement (55?), but it will be very tough unless stocks really pick up in the next 15 years. Your numbers don't make sense. If you maxed 401k ($16,500) last year in November. How could you be already at $5,600 for 2011 and it's not even March yet? Are you putting in over $2,500/month in 401k? You'd reach max WAY before October or November this year. It makes sense. I have received two bonuses at the beginning of the year, both rather large. 15% of those bonuses were taken out also and contributed to the 401(k), just like out of my regular paycheck. That's how I got the $5,600 so far this year. It was similar last year (and every year before that). Yes, I will most likely reach the max in or around October of this year, and not much earlier.
|
|
WannabeWealthy
Established Member
Joined: Dec 27, 2010 12:25:17 GMT -5
Posts: 357
|
Post by WannabeWealthy on Feb 26, 2011 11:35:21 GMT -5
Your numbers don't make sense. If you maxed 401k ($16,500) last year in November. How could you be already at $5,600 for 2011 and it's not even March yet? Are you putting in over $2,500/month in 401k? You'd reach max WAY before October or November this year. It makes sense. I have received two bonuses at the beginning of the year, both rather large. 15% of those bonuses were taken out also and contributed to the 401(k), just like out of my regular paycheck. That's how I got the $5,600 so far this year. It was similar last year (and every year before that). Yes, I will most likely reach the max in or around October of this year, and not much earlier. I still don't get it. Do you only get a yearly bonus? Was this a 1-shot deal as to why you are already at $5,600? So from March-October (8 months), you'll only average ~$11k more? That's about $1,375/month. To reach the max from Jan-Dec (12 months), one would have to contribute $1375/month (12 checks) or $634 every 2 weeks (26 week pay periods).
|
|
gooddecisions
Senior Member
Joined: Dec 22, 2010 13:42:28 GMT -5
Posts: 2,418
|
Post by gooddecisions on Feb 26, 2011 11:39:19 GMT -5
I definitely have to give credit to the YM message boards for making the max limit my goal. If it weren't for finding the boards 7 years ago, my percentage would have been based on the match and I wouldn't have given it a second thought. I found out my sister was contributing 5% to her 401(k) while contributing 10% to United Way. It makes so mad that companies spend all this time and effort every year bullying people to contribute to the UW and little to no effort goes into educating employees about the 401(k).
|
|
HappyLady
Initiate Member
Joined: Feb 26, 2011 11:39:13 GMT -5
Posts: 66
|
Post by HappyLady on Feb 26, 2011 11:45:08 GMT -5
I increase my contributions to try and max out my 401K by July--to about 70% of my income. That way, I have the remainder of the year to save money to use the begining of the next half of the year when my pay check is smaller because I am maxing out my 401k. The first few months are hard--but it feels great in the fall when I am getting a larger paycheck!
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 26, 2011 11:45:55 GMT -5
It makes sense. I have received two bonuses at the beginning of the year, both rather large. 15% of those bonuses were taken out also and contributed to the 401(k), just like out of my regular paycheck. That's how I got the $5,600 so far this year. It was similar last year (and every year before that). Yes, I will most likely reach the max in or around October of this year, and not much earlier. I still don't get it. Do you only get a yearly bonus? Was this a 1-shot deal as to why you are already at $5,600? So from March-October (8 months), you'll only average ~$11k more? That's about $1,375/month. To reach the max from Jan-Dec (12 months), one would have to contribute $1375/month (12 checks) or $634 every 2 weeks (26 week pay periods). I am not sure what about this is difficult to understand. It does not really matter how many bonuses I get per year (it's more than one), but some of it is included in the $5,600. I get sizable bonuses every year in January, and some later in the year. So as an arbitrary example: say my base salary is $50K. I contribute 15% of that to my 401K. That's $7,500, or $625 per month. Now in January, I get a $60,000 bonus. 15% of that is $9,000. So at the end of February, I will have contributed $9,000+$625*2 = $10,250 to my 401(k). And I would max out sometime in October. Does that make sense? These are of course not my numbers in terms of base salary and bonuses, just an example. Now this will make it much more difficult to figure out my total income (or the base salary) as you have stated above (you said: "Nice way to get what everyones salary is."), because I did not give enough information about the bonuses (and how many there are still to come in this year before October).
|
|
WannabeWealthy
Established Member
Joined: Dec 27, 2010 12:25:17 GMT -5
Posts: 357
|
Post by WannabeWealthy on Feb 26, 2011 11:48:41 GMT -5
I still don't get it. Do you only get a yearly bonus? Was this a 1-shot deal as to why you are already at $5,600? So from March-October (8 months), you'll only average ~$11k more? That's about $1,375/month. To reach the max from Jan-Dec (12 months), one would have to contribute $1375/month (12 checks) or $634 every 2 weeks (26 week pay periods). I am not sure what about this is difficult to understand. It does not really matter how many bonuses I get per year (it's more than one), but some of it is included in the $5,600. I get sizable bonuses every year in January, and some later in the year. So as an arbitrary example: say my base salary is $50K. I contribute 15% of that to my 401K. That's $7,500, or $625 per month. Now in January, I get a $60,000 bonus. 15% of that is $9,000. So at the end of February, I will have contributed $9,000+$625*2 = $10,250 to my 401(k). And I would max out sometime in October. Does that make sense? These are of course not my numbers in terms of base salary and bonuses, just an example. Now this will make it much more difficult to figure out my total income (or the base salary) as you have stated above, because I did not give enough information about the bonuses (and how many there are still to come in this year before October). Yes, this makes more sense and what I was asking. If you got a bonus in January, and then didn't get another one until late in the year, then that's why you are limited to only reaching max in October-Dec timeframe. You didn't mention bonuses in your first post, so naturally someone will be skeptical of the numbers. -M
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 26, 2011 11:53:04 GMT -5
I increase my contributions to try and max out my 401K by July--to about 70% of my income. That way, I have the remainder of the year to save money to use the begining of the next half of the year when my pay check is smaller because I am maxing out my 401k. The first few months are hard--but it feels great in the fall when I am getting a larger paycheck! One way of doing it, even though a bit extreme!
|
|
Deleted
Joined: May 3, 2024 20:55:12 GMT -5
Posts: 0
|
Post by Deleted on Feb 26, 2011 11:53:14 GMT -5
I increase my contributions to try and max out my 401K by July--to about 70% of my income. That way, I have the remainder of the year to save money to use the begining of the next half of the year when my pay check is smaller because I am maxing out my 401k. The first few months are hard--but it feels great in the fall when I am getting a larger paycheck! Wow... I am impressed. You manage to live on 30% of your gross income?
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 26, 2011 11:55:42 GMT -5
You didn't mention bonuses in your first post, so naturally someone will be skeptical of the numbers. -M Yep, the bonuses are the key, and the bonuses are what will make it difficult (impossible?) to figure out the income based on the numbers given.
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 26, 2011 11:58:23 GMT -5
I increase my contributions to try and max out my 401K by July--to about 70% of my income. That way, I have the remainder of the year to save money to use the begining of the next half of the year when my pay check is smaller because I am maxing out my 401k. The first few months are hard--but it feels great in the fall when I am getting a larger paycheck! Wow... I am impressed. You manage to live on 30% of your gross income? No, you did not read all her post. I think HappyLady said that she needs the second half of the year to save enough money to live on in the first half of the next year when she contributes 70% to her 401(k). Kinda like the cat chasing it's tail. But hey, HappyLady achieves her goal of maxing the 401(k), so why not, if it works for her!
|
|
|
Post by gsbrq on Feb 26, 2011 12:10:26 GMT -5
Between my Roth & 401k I contribute 20%; I max out the Roth but not the 401k. When I was still getting raises, I increased my 401k contribution by about 80% of the raise each time, but since we haven't gotten raises or bonuses for the last 2 years, it's challenging to even keep the contributions at 20%...I've had to cut back a good bit of my discretionary spending.
Obviously the more you make, the easier it is to max out your 401k. I hope to be able to increase my contributions within the next couple of years, but it's not the only financial priority in my life.
|
|
Deleted
Joined: May 3, 2024 20:55:12 GMT -5
Posts: 0
|
Post by Deleted on Feb 26, 2011 12:18:37 GMT -5
Wow... I am impressed. You manage to live on 30% of your gross income? No, you did not read all her post. I think HappyLady said that she needs the second half of the year to save enough money to live on in the first half of the next year when she contributes 70% to her 401(k). Kinda like the cat chasing it's tail. But hey, HappyLady achieves her goal of maxing the 401(k), so why not, if it works for her! Oh ok, missed that part, sorry. So she contributes 70% for half the year to max out early, and save the extra the remaining of the year. HappyLady, congrats on maxing your 401K and I am sure it works for you.
|
|
kansasflower
New Member
Joined: Dec 21, 2010 19:11:40 GMT -5
Posts: 46
|
Post by kansasflower on Feb 26, 2011 12:36:31 GMT -5
DH puts in 15%, I put 24% into my 401K. We max out IRAs.
|
|