You make 10% sound weak! Lol. BravoWife and myself have been maxing out the 401K for the last 20 years...now that we are both 50 the catch up rule allows us to put $24.5K each per year. Her company does a 6% match but that came at the expense of a frozen then dissolved pension and the removal of lifetime retirement healthcare...I would rather have those.
Makes sense. Make a decent income so it’s dumb to not put forth a good chunk into my retirement...takes away that urge to buy something stupid. I know it’ll pay off later that’s for sure. What do people do if they don’t have a retirement? Could you imagine?All comes down to what you have left over to invest...We stayed in the same house we bought in 97..bought (not leased) our cars 1 year old and kept them. If the wife got a big comp check it went into the bank, we never said "what should we buy with it". I am not going to lie, a good income has blessed us (of course a lot work also went into it). But, I have seen many people with greater incomes have nothing at the end of every year.
I still wonder that..I also sometimes think maybe I should have spent more...everyone seems too and they don't seem to worry. I am sure I will leave my kids with way too much money when I am gone.Makes sense. Make a decent income so it’s dumb to not put forth a good chunk into my retirement...takes away that urge to buy something stupid. I know it’ll pay off later that’s for sure. What do people do if they don’t have a retirement? Could you imagine?
MedicaidI still wonder that..I also sometimes think maybe I should have spent more...everyone seems too and they don't seem to worry. I am sure I will leave my kids with way too much money when I am gone.
I deal with Medicaid a lot through work, and it’s some hairy stuff.Another big reason to overload the IRA/401K is you do still have access to it...there will be tax implications but it is still there. It is funny you brought up medicaid...the 401K money is protected...maybe not the mandatory minimum distribution but the principal. We are still going through dealing with medicaid...my mother in law finally had hit the point of dementia nursing home care @$14,000 per month. She only lasted 4 months in the nursing home until she lost that battle, but my father in law got the remains of her IRA/401k of a couple hundred thousand.
Random thread here so bare [sic] with me. With annual raises and all I think it’s time to bump up the 401 k. Company matches up to 4%. Is 10% to aggressive? For those of you that are actively involved in a 401k or have a retirement account setup what do you have taken out pretax?
That’s kind of how I have been gong about it also. Just nice to see how everybody handles their futures lolYeah if you get a raise too my trick is just to immediately allocate that money away to some sort of savings so then I’m living with the same amount as I have been which I’m still comfortable with and any additional adjustments just go straight into savings/401/Roth/ whatever before I see it.
After the wedding I think that will be the plan. That seems to be the consensus. If you can max it out go for it.I spent a lot of years saving enough to get my Company's max match (various companies) and maybe a couple percent more. Recently (like the last 5 years) I've really been pushing the throttle down on my savings. My 401k and HSA are both maxed out. Next year, I'll start with my investments outside of "retirement" savings. Like getting the money sitting in my savings account somewhere it will earn more than a quarter of a percent. Feeling pretty good about where I'll be at retirement...if I play my cards right, I may even be able to retire early.
My advice...Max the 401k. You are young yet...that money will be SO valuable later. Get used to it being taken now, and once you're married and have kids and all that, you'll be used to not having it.