I'm 26 and currently put away 20% of my income into a 401k, plus I max out a Roth IRA every year. Sometimes I feel like even that much isn't enough, but other people tell me I'm overdoing it and should enjoy my money more NOW. What percentage is the "right" percentage to have both a comfortable lifestyle and be confident I won't be eating catfood when I'm 85?
2006-09-20 00:57:35 · 6 answers · asked by Jason M 2 in Business & Finance ➔ Personal Finance
There is no "right" percentage. You have 40 years to go to retirement. Concentrate on conservative investments so you hold onto what you have. I think you are saving plenty.
Your retirement is so far away, no one can predict anything now. When you get older, you might want to consider purchasing an annuity with some of your investments. Annuities give you a payout for as long as you live. You will therefore be assured of having a steady income, along with Social Security and any retirement benefits you may have.
2006-09-20 01:15:35 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋
Twenty percent is more than most people do, but if you are comfortable doing that amount, more power to you. You will probably live longer than you think, and want to spend more in retirement than you can now imagine, and there will come a time when the extra bucks feel really good. As you get a bit older, and have a house and family responsibilities to deal with, you may need to cut back a bit. But all that money you are saving now will still be at work.
2006-09-20 01:04:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You are not overdoing it. Remember, you may not always be in a financial position to put away that much and the younger you are the better. Keep at it. So what if you "over do" it, it just means you will be able to live more comfortable than others in retirement. Keep up the good work!
2006-09-20 01:06:50 · answer #3 · answered by Michelle 4 · 0⤊ 0⤋
If you are able to take 20% of your income, that is great. I would diversify that and cut it up into 3rds or 4ths. Put a portion of that in a savings account and a portion in the stock market with dollar cost averaging applied.
2006-09-20 01:04:14 · answer #4 · answered by elthe3rd 4 · 0⤊ 0⤋
Sounds like you're doing pretty good by saving >20% of your income. Just make sure you invest that money in a nice diversified growth portfolio.
Make sure you live a nice balanced life.
2006-09-20 10:53:47 · answer #5 · answered by derek 4 · 0⤊ 0⤋
Finance solutions fast
2015-03-02 14:23:14 · answer #6 · answered by Ferinand 1 · 0⤊ 0⤋