Or whats the best way to determine this?
2006-12-13 06:28:20 · 8 answers · asked by MM 5 in Business & Finance ➔ Personal Finance
Follow these steps in order: keep in mind you should prioritize retirement funding as much as possible but keep in mind that you need to properly allocate funds for short and medium term savings as well.
1. Contribute the % up to your company match
2. Max out your Roth IRA allowable contribution amount:(most likely $4k)
After doing steps 1 and 2, Bump up the % your contributing to your 401k as much as possible to your companies maximum % contribution limit or $15k per year (gov't limit), whichever is less.
2006-12-13 06:59:07 · answer #1 · answered by SmittyJ 3 · 1⤊ 0⤋
The Federal Govt. In DC matches only 3 percent. So 3 percent it shall be. Some people can AFFORD to pay more, Unfortunately most people cannot.
2006-12-13 06:36:17 · answer #2 · answered by Kawainani 4 · 0⤊ 0⤋
depends on a lot of things... how much can you afford to invest in it? How much does your company match? I would most definitely at least put the maximum amount your company will match. I iinvest 10% but my company only gives us 25cents on the first 6%... our company sucks but oh well. The more you can put away the more you will have later.
2006-12-13 06:32:35 · answer #3 · answered by eViL 2 · 1⤊ 0⤋
As much as you can (last time I checked that was 6% of your income) Some people only put in what they're company will match but over the years that will cost them hundreds of thousands of dollars.
2006-12-13 09:50:29 · answer #4 · answered by Vadalia 4 · 0⤊ 0⤋
As much as you can afford. At least the company matching. If they only match 3%, then at least 3%. I do 10%.
2006-12-13 06:31:10 · answer #5 · answered by Dianne 4 · 1⤊ 0⤋
The minimum should be the amount that the employer will match.
2006-12-13 06:30:03 · answer #6 · answered by Barkley Hound 7 · 1⤊ 0⤋
up to your company match and more if you can. If you are young you should also try to max a Roth IRA.
2006-12-13 06:30:28 · answer #7 · answered by samsosa2000 2 · 1⤊ 0⤋
Find out what your company recommends, and then double it if you can.
2006-12-13 06:30:34 · answer #8 · answered by Gen•X•er (I love zombies!) 6 · 1⤊ 0⤋