How old are you, and what percent of your pay do you put away?

Question

I'm 26 and currently put away 20% of every paycheck into my 401k, plus I max out my Roth IRA every year. I feel like this is enough, but I never know. There needs to be a balance between savings and enjoying your life and money now... so how do others reconcile this decision?

Answer 1

You are doing great! I am 38 and put around 10% of my pre-tax income into retirement accounts.

If you can keep the 20% going you will be well set for retirement. The key is to make sure that you are properly diversified within your 401(k) and Roth accounts. At your age you can afford to be in some pretty aggressive funds and stocks. Probably about 80% stocks and 20% bond type funds. Be sure to monitor them at least twice a year and make adjustments as necessary. Also, just to be safe, make sure you have enough cash in a savings account to cover at least three months worth of expenses. That way, if anything should happen to your current job, you have a cushion to live on without tapping those retirement accounts.

Answer 2

Eight years ago, when I was 16, I put 10% away for a rainy day and used the rest to cover expenses such as clothes and school supplies.
Now that I'm older I find that a difficult task. You're already planning for the future- you have no idea how far ahead you are!
I would say put an extra 10% away in a CD (short-term seem better right now) or savings account with interest. To maximize the account's potential, check out emigrantsdirect.com

Answer 3

I put away 100 in my Roth IRA each month and 10% to my 401k. I am 23 years old.

Answer 4

i am 50
I put into 401k only 10% ( company doesnt match funds)
put 25% into savings
paying mortage on one large farm out of state ( hwere I plan to spend my Winters when I retire) and own home here
I travel and do what I enjoy.. with my budget

Answer 5

10 % is very adequate. It will multiple over the year.

Answer 6

i am 13 so i don't have a job