2007-02-11 08:10:06 · 6 answers · asked by zander1331 3 in Business & Finance ➔ Personal Finance
Answer # 1. As much as you possibly can.
Answer # 2. 15% of all the money that you earn throughout your lifetime.
Answer # 3. As much as you will be comfortable retiring on...which will be different amounts for different people. What will your annual expenses be from the day you retire until the day that you die ???
The 15% of gross salary works fine for many peolpe, but more than that is better
2007-02-11 08:17:57 · answer #1 · answered by JustPeachy !!! 5 · 0⤊ 0⤋
You should save at least enough to get the employer match if your employer's 401k plan offers one. I think you should contribute a minimum of 10% each month to retirement accounts--you're never going to have too much, and inflation will erode the value of the dollar as you get older, so you'll need way more then than you think.
But I think people should save for other things, too. You need to set aside cash every month to an account for irregular expenses and emergencies--like vacations, taxes, car breakdowns, etc. Don't save so much for retirement that you have no cash for life in the meantime.
2007-02-11 08:17:54 · answer #2 · answered by lizzgeorge 4 · 1⤊ 0⤋
How much do you need to live off each month ???
Heres a simple formula : Take any amount, divide it by 2 and then drop a zero.
We will do ONE MILLION for the example :
$1,000,000.oo divided by 2 = $500,000.oo DROP a zero = $50,000.oo.
Can you life off $50,000.oo a year?? If so then you will need to have one million dollars in an investment account and NOT a bank savings account. You will make $50,000 in interest off this one million annually. If you need more then simply save more !!
: )
2007-02-11 09:38:23 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋
As much as you can. You can always retire early and enjoy years without bosses, deadlines, etc. It is much better than once in awhile vacations as it does not end in a week or two.
2007-02-12 06:44:51 · answer #4 · answered by Thinker 7 · 0⤊ 0⤋
A good rule of thumb is 15% of your gross income. You can do this by putting in up to the employer match into your 401K plan. Then max out a Roth IRA each year. If you have anything else left of the 15%, put it into your 401K.
2007-02-11 10:07:33 · answer #5 · answered by Jen G 5 · 1⤊ 0⤋
It depends on many factor and the main is where do u live in
2007-02-12 00:09:14 · answer #6 · answered by Lets find the way 2 · 0⤊ 0⤋