What percentage of my salary should I save for retirement?

Answer 1

As much as you can afford to save.

Answer 2

Between 10 and 20%.

You should invest this in mutual funds (low return but no risk) and a GOOD 401 K (check the small print for roll over and early withdraw penalties). Too, I suggest you buy US Savings Bonds for a good solid return and safe investment.

Avoid scams like buying dying victims insurance policies for fast hard cash and investments that sound too good to be true because they are.

Retirement is like a fast boat and a slow boat on the same sea. The fast one may get there sooner but it is dangerous going and the ride is bumpy. Slow and steady is a sure bet for fewer losses and smarter gains.

Once you retire, your income and savings should be about 80% of what you were used to spending. By the time you retire, your expences should drop by 20-30% as cars, homes and loans should be paid off by then. The major mistake people make is not making sure they are solid in case of medical issues rising as they age.

Good luck and good life to you.

Answer 3

It sounds like you're doing very well, but you have to account for inflation. If inflation runs at a 3% per year (roughly, its average for the post WW-II period) for the next 30 years, $100,000 will be worth something like $44,000 in today's dollars. It's very difficult to figure out how much you'd have to save to have the 2040 equivalent of $100,000 a year because no one knows how bad inflation will be during the next 30 years (and it could be bad). A simpler way to plan is to save about 15% to 20% of your pretax income every year. If you do that for the next 30 years, you'll have a good chance of maintaining in retirement a lifestyle close to your pre-retirement lifestyle. This assumes your salary keeps pace with inflation, but salaries tend to do that over the long term. The 15% to 20% level of savings is high, and too high for most people. But you seem like the careful type of person who could pull it off.

Answer 4

As much as you can afford to save is right. This will vary as your expenses change through your life, and even year to year. So one year there may be more you can contribute, the next a little less, the next you get a raise & so more.

One good practice is to put an entire raise you get into your retirement.

Pay off any credit card & cut it up for good. This affects your savings rate!

Every investment has a risk factor, and in my view none of them are as risky as doing nothing!

I strongly recommend education.

Also, one of the fund families like Vanguard or Dodge & Cox
will have something that may fit your situation. Watch the expense ratio (no more than 1.00% ) and look at the history and risk profile of that fund to see if it is what you want.

Good Investing to you!

;-)

*** Disclosure: Wikijo owns shares in Dodge & Cox .

Answer 5

It depends on how much you expect to draw every year when you're retired. Do an online search for retirement calculators. If you expect to draw an amount equal to your current salary, a rough ballpark figure is around 25 times your current salary if you've invested in an S&P 500 index fund.

Answer 6

start with whatever you can, but try to build it up to 20%, thats a pretty good point to be at

mrscmmckim, you cant say mutual funds have low returns and no risk, everything has risk, even garaunteed bonds have inflation risk, mutual funds vary from low risk funds to very high risk speculative funds, and the returns vary from low to very high, depending on what fund you have and the risk tolerance

Answer 7

I would think at least 15%.

Answer 8

80 percent

Answer 9

none........your only here once and you ain't gonna take jacksh!! with you when you leave!