About how much should i be "saving/putting away for my retirment, i mean what % of my pay check.
ME, 26yoM, So Cali, Orange county.
2007-02-12 21:44:53 · 5 answers · asked by "/ J()€ 5 in Business & Finance ➔ Personal Finance
Depends on how much you want to end up with and how much you're making. Contribute enough to get a 401k match, if your company offers one. Then stash an additional 3-5% of your salary into a Roth IRA (tax rates WILL be higher by the time you retire, so pay the tax now).
But make sure you're saving outside your retirement account too. In an emergency, you don't want to have to raid your 401k. Plus I'm sure you'll want to buy a home, car, go on vacation, etc. sometime in your life, so save for that each month too.
2007-02-13 04:48:20 · answer #1 · answered by lizzgeorge 4 · 1⤊ 1⤋
It depends on your earnings and budget but the rule of thumb is to save and invest between 10% and 20% of your take home pay.
At 26 you should be looking to invest this so that you end up with an average annual return of 8% to 12%. This can be accomplished without being overly aggressive. Those people who recommend that you put 100% of your investments into the stock market or stock mutual funds always follow-up with "if you lose everything you are young enough to start over". Stay the course on an asset allocation strategy and you will benefit from compounding in the long term.
2007-02-13 06:50:17 · answer #2 · answered by waggy_33 6 · 1⤊ 1⤋
The average savings in Japan is 50%. Live BELOW your means. It is very important to save as much as you can.
2007-02-13 06:14:30 · answer #3 · answered by Anonymous · 1⤊ 0⤋
As much as you can without starving to death. The Government sure as hell won't be there for you at your retirement.
2007-02-13 05:54:58 · answer #4 · answered by Jrahdel 5 · 0⤊ 0⤋
depends on how much u earning? i am 26 so im putting aside abt 20k per month for my retirement.
2007-02-13 05:53:53 · answer #5 · answered by Tan Boon Hwee k 2 · 0⤊ 2⤋