Realistically, when do you think you can retire?

44

 

I'm 26, percentage wise can vary so much for each of us, if not too personal, not like any of us know each other what are you guys putting into a 401k monthly?

 

401K - $1541.67 (18,500/yr Fed Max)
Company Match 50% on first 6%... so... 150/month.
And they put 2% in for being an employee, so another $100/month.
AND they put about 3% in per year for "profit sharing", so $150/month.

That comes to $1941.67/month including what I put in, and the company match, etc. And that's not including any OT which would SLIGHTLY increase the 2% for being employee, and 3% for profit sharing.

I never put that much in before I was married. Once married, my wife had me max out 401k to get the tax benefit. She does the same. She has planned to retire at 45, so I'd be 48. My favorite part of her plan is that she'd do part time contract work while I was a house husband!!

 

I vary from $1200 to $2000/month.

 

Nothing. I don’t have a 401k.

I put away 15% of my pretax income per month into retirement investments. As does my husband. We are 27 and 30.

My husbands 401k matches 3%. So his is 3% invest in 401k and 12% our other investments.

It adds up to about $1,500/mo

 

i'm putting back about 1200 a month Roth-401k and company gives me like 1500 or so a year profit sharing.

your companies retirement is a ton better than mine, but this is first job out of college and not working for myself.

oh yeah, what's the tax benefit?

it's also worth noting that 1200 is all roth, so tax is paid up front.

 

The tax benefit is just that the money is deducted from your paycheck before tax, so your taxable income is less. So if I made $100, and took out $30 to my 401k, I'd pay taxes on $70 instead of on $100.

 

You can’t put more than $5,500 a year in a roth.

Tax benefit is what you put in pretax investments is tax differed.
So if you make $60,000 per year and put away $10,000 in pretax retirement then your taxable income is $50,000.

 

I am a 28 year old teacher. I am not ever going to get to retire.

 

you're referring to roth IRA, not roth 401k company sponsored.

you're correct on the taxable income, but because I'm in a lower tax bracket than I expect later in life I'm paying all my taxes now

 

i gotcha, all of mine is roth.

at 26, i expect to be in a higher bracket within a few years and taxes are relatively cheap right now.

so im paying taxes now and avoiding higher later in life when drawing. Plus as stated in roth even my growth is tax exempt.

 

My wife's got me maxing the Roth out, too, thought we were just talking 401K Also putting as much as possible into my Health Savings Account, too. It's pretax, and you keep it forever. Hopefully it'll have a good hunk of money in it when I retire to help cover the cost of Medical Insurance.

 

I have 3 options to choose from being company sponsored 401k

Salary Deferral
Post 86
Roth

 

my medical account doesn't work like that. it has limits.

 

well, as much as possible is like 550 a month or so. Whatever the limit is.

 

i put nothing into salary deferral or post 86, it's all roth for me. If i'm in the same tax bracket in a few years I wasn't hustling hard enough.

https://www.investopedia.com/articl...contribution-limits-roth-401k-vs-roth-ira.asp

 

i'm young don't get sick much. I put $10 a month into it.

Also you can only carry over so much year to year.

I think payroll stops pulling from your check when it's maxed. So I assume there's no way to lose money if you max out to what the carry over amount is.

 

I think that's the difference between an FSA and and HSA, HSA you get to keep, FSA goes away at end of year (or part of it at least).

 

That is correct... but you gave the impression your company’s retirement sucked so I assumed that was not company sponsored... roth is the best you can get!

You can only use an HSA to pay for health insurance premiums under specific circumstances. Especially in retirement.

I put only as much in my HSA as I know I will use.
The tax benefits are so minimal its useless.
Plus health insurance in the market place is so expensive you’ll have to save for 6 years to pay a years worth of premuims. And thats not using a dime of the HSA.

 

i guess mine could be worse. it is company sponsored. I was referring to their profit sharing only and no matching. given their profit sharing is the 3% so it's the same as your company matching 50% of your 6% contribution.