[Serial Midget]

I'm just curious what % of income the average (not highly) compensated monkey is contributing to their 401K.

Do you have a company pension plan in addition to a matching 401K?

Do you also have a IRA?

My employer will match my 401K contribution up to 6% of gross compensation, less bonuses but including incentive pay.

I also have a pension plan that seems to pay roughly what Social Security would pay (assuming that program is still viable).

Next year I will have the option of a pension buy-out and an increased employer 401K match of 1%. My pension buy-out would be very low as I have only been with the company for 24 months. The incentive would have to be the additional 1%.

I am currently contributing 20% (the maximum) but recently bought a new car and property that I want to build on. So I am trying to figure out just how much of a house I can afford to build without screwing up my retirement...

What sort of plan are you following?

DOH!!! The last option is supposed to be 16%!!!

 

[MtnBikerChk]

My employer will match my 401K contribution up to 6% of gross compensation, less bonuses but including incentive pay.

that much (enough for the match)

 

[Cooter Brown]

I put 6% into my 401k with a company match of 6%, so basically, if you don't do that, you're giving away free money. I also purchase company stock with 5% of my gross at a 7% discount from market value twice a year.

 

[splat]

I put 7 % into my 401K after that the company no longer matches. I also Purchase stock twice a year at 15%( minimun) Discount.

 

[reflux]

I have a pension, no 401k, and a Roth IRA. I max the Roth each year, and throw whatever extra savings at year end into a savings account. With no debt other than student loans, I usually "save" anywhere between 10 and 20% of my wages. To answer your question, I'd at least do what MBC does if I had a 401k.

 

[McGRP01]

that much (enough for the match)

My wife and I also have Roth IRA's.

 

[Serial Midget]

I was basically unemployed from 1999 to 2004 and lived off of retirement & savings - I didn't spend it all but came close, I figure I blew about 10 years worth of savings. I need to make up for that plus I am concerned about maintaining my income tax rate...

 

[ktmsx]

The only good thing left about my company,they put 10% in a year...

 

[Yossarian]

I put 7% into my 401K with a match up to 6%, I have a Roth IRA, that is funded to the max annually from a Money Market account, extra savings go the money market account ( but there isn't much of that anymore)

 

[The Toninator]

I was 14% (4years at that rate) but my cost of living has gone up and i'm a little concerned the funds arent performing well. so i've reduced to 10% and i'm tucking the other 4% away and will probably roth it but researching options.
my company only matchs a quarter on the dollar up to 2%. They are pretty much worthless.
No pension. I was talking to my buddy who works from Exxon/Mobile last night. Big Oil Money is crazy.

 

[urbaindk]

I throw in 10%. Now that I have been here two years, I think I'm vested and the Man matching. I have to check. Let's here it for the Man!

 

[Qman]

I don't have either but contribute ~10% to a SEP IRA and the full allowable contribution to a Roth.

You're probably young enough that it makes better sense to do a 401k contribution just up to their match so 6 or 7% depending on what you decide on the pension buyout. Sounds like you've got plenty to spend money on but normally the extra 14% you've been contributing to the 401k should go towards a Roth IRA. Property is usually a great investment so don't beat yourself up if your not saving much while working on the property thing.
Depending on your investment options in the 401k, you might have been doing well with the 20% contribution. Some companies have lame choices though so a lot of people just opt for the full match (6% in your case) and put the rest in and IRA (Roth or Traditional) to have more investment choices.

 

[Barbaton]

Haven't set up any contribution of my money. But, instead of matching, my employer automatically puts in 5% so I get free money no matter what my contribution is.

I do put about 12% into a Roth IRA since I work non-profit (403B instead of 401k) and can have both...

 

[I Are Baboon]

I put 10% in my 403b (same thing). No company match, but I do get an employer-paid pension that equals about 7% of my annual salary (I think....they use some kind of funked up math that I should probably understand). I'll be fully vested in April '07.

 

[Serial Midget]

...employer-paid pension that equals about 7% of my annual salary (I think....they use some kind of funked up math that I should probably understand)

I do not understand the calculation either but I am thinking that with so little invested I should just keep the pension option. No one I work with really knows what they should do either...

 

[Slugman]

I used to put about 12% and my company would match up to 6%. I was vested and had a pension set up

Now I work for a start up - if it sells for what we want, I get to retire by age 40. If not... I'm in trouble.

I converted my 401K to an IRA when I moved... I try to add to it, but the budget is TIGHT and I do not get o add as much as I know I should....

 

[I Are Baboon]

Oh, I also have a "rainy day fund" where I direct deposit some of my take home into a savings account. Problem is, there have been a lot of rainy days this year.

 

[Slugman]

Oh, I also have a "rainy day fund" where I direct deposit some of my take home into a savings account. Problem is, there have been a lot of rainy days this year.

My wife and I call it the sh*tcanned fund... we both work in fairly volatile work places.

I've got 2.5months of salary saved up just in case either of us gets fired... and we pray we both don't get fired at the same time.

 

[dante]

Haven't set up any contribution of my money. But, instead of matching, my employer automatically puts in 5% so I get free money no matter what my contribution is.

I do put about 12% into a Roth IRA since I work non-profit (403B instead of 401k) and can have both...

You can always put $$ into a Roth IRA, even if you have a 401k/403b plan (if you're under the salary limit, $95k single, $150k couple). You can even put money into a traditional IRA *and* a 401k if you make under a certain amount (50k/year).

To the original poster, definitely put in as much as the company will match, as otherwise you're just leaving $$ on the table. Without knowing what company you have, and what pension it is, I really can't say whether you should take the buyout or not. With the pension "issues" that are going on these days, I'd be leery of trusting a pension that wasn't something backed by the gov, like a teachers pension or similar.

There's also good calculators on the web as to which is better for you to donate to, Roth or Traditional IRAs. http://www.dinkytown.net/java/RothvsRegular.html

 

[Snacks]

8% to 401K (no company match), but we do have profit sharing and I'm fully vested

I have contributed the max aloud to my Roth IRA for the past 8 years and I'm still pretty sure I'm going to broke in retirement

 

[narlus]

i think my company matches 50% up to 6% of income contribution (ie, a 6% contribution would yield an effective 9% amount). i can't recall but i think i contribute 7% of my income, it might be a bit higher. i've been doing this for a long time and it's a nice way to stash $ away tax-free. everyone should really put away what they can for max value, i'd say.

the other good tax dodge is the healthcare spending account. i just started using this a couple of years ago, and i highly recommend it. basically you can set aside up to ~5K of yr income and use it for certain health-related costs; you submit a claim and they reimburse you. the caveat is that you don't get any leftover $ you didn't claim, so don't overestimate.

 

[reflux]

the other good tax dodge is the healthcare spending account. i just started using this a couple of years ago, and i highly recommend it. basically you can set aside up to ~5K of yr income and use it for certain health-related costs; you submit a claim and they reimburse you. the caveat is that you don't get any leftover $ you didn't claim, so don't overestimate.

Read: cafeteria plan. Healthcare spending account makes it sound like a health(care?) savings account, which is an entirely different beast.

OTBS with cafe plans. You don't have to spend it all by 12/31, I believe you have until either 1/31 or 4/15 to spend it. And, you can also spend it on over the counter stuff. Werd.

 

[jimmydean]

My company does not match, but they are supposed to start soon.

 

[buildyourown]

You guys should really be putting in the max.
Several years ago, I had some good sized CC debt. I got a job that had a 401k, so I started putting in the max. I did the math to see if I should save the money, or pay off the CC. I was saving more in taxes than I was paying in CC interest. Now my CC are paid off and my IRA is pretty decent.
I don't have a 401k anymore but I still do the tax free IRA thing. If you have a tax bill at the end of the year, look into making a last minute contribution. It can make your taxes go way down.

 

[Austin Bike]

If you don't max it out (and can afford to) then you are a fool.

Too many people won't have enough to retire. I'd rather pass on the bling now and retire at 50 than have flashy stuff and work until I'm 70.

But if you have debt (especially credit cards) you should pay that off first.

 

[johnbryanpeters]

As an old fart, I'm maxing it, I forget the percentage. Build as little house as you can, or get a trailer, until you're on firmer financial ground.

 

[ktmsx]

If you don't max it out (and can afford to) then you are a fool.

Too many people won't have enough to retire. I'd rather pass on the bling now and retire at 50 than have flashy stuff and work until I'm 70.

I have a friend who thinks like that,he works a lot of weekends and some 12hr. days so he can retire when he is 55.I have known him for 12 years, talk about beeing a fool....he does nothing...and is the cheapest dude you will ever meet...yeah good plan, watch your life pass you by so you can sit around when your old............

 

[Serial Midget]

As an old fart, I'm maxing it, I forget the percentage. Build as little house as you can, or get a trailer, until you're on firmer financial ground.

Meh... in the end I took no action, left the contribution as it sits. I can wait untill my house sells before I start building.

The final decision... lowering my contribution would increase my federal taxes.

 

[Serial Midget]

I have a friend who thinks like that,he works a lot of weekends and some 12hr. days so he can retire when he is 55.I have known him for 12 years, talk about beeing a fool....he does nothing...and is the cheapest dude you will ever meet...yeah good plan, watch your life pass you by so you can sit around when your old............

I had a kick ass time with lots of travel, many bikes and little responsibility from age 32 to 37. I spent most of the money I made in the 90's within the first 2 years. I managed to keep my house but was reduced to a broken down old truck and no health insurance for the last 2 years. Right now I think it was worth it but... we'll see how I feel when I'm 70.

 

[TreeSaw]

i think my company matches 50% up to 6% of income contribution (ie, a 6% contribution would yield an effective 9% amount). i can't recall but i think i contribute 7% of my income, it might be a bit higher. i've been doing this for a long time and it's a nice way to stash $ away tax-free. everyone should really put away what they can for max value, i'd say.

the other good tax dodge is the healthcare spending account. i just started using this a couple of years ago, and i highly recommend it. basically you can set aside up to ~5K of yr income and use it for certain health-related costs; you submit a claim and they reimburse you. the caveat is that you don't get any leftover $ you didn't claim, so don't overestimate.

We have something similar for both sq-earl and I, mine is a 403(B) and his a 401(K). We're also thinking that the healthcare spending account his work offers is a good idea as we have a grace period (3/15 or 3/1 I believe) to use up the $ in it before we loose it. Now, we have to figure out how much to add

 

[Qman]

If you don't max it out (and can afford to) then you are a fool.

Too many people won't have enough to retire. I'd rather pass on the bling now and retire at 50 than have flashy stuff and work until I'm 70.

But if you have debt (especially credit cards) you should pay that off first.

True but sometimes it's better to look at the lump sum differently. If the employer's investment choices within the 401k are not that great, it makes more sense to contribute up to the maximum matching percentage and put the rest of the money in a traditional or Roth IRA (depends on your circumstances). So if you want to contribute 10%, do 6% to the 401k for the maximum match (free money) and put the 4% into a Roth.

 

[Austin Bike]

I have a friend who thinks like that,he works a lot of weekends and some 12hr. days so he can retire when he is 55.I have known him for 12 years, talk about beeing a fool....he does nothing...and is the cheapest dude you will ever meet...yeah good plan, watch your life pass you by so you can sit around when your old............

I'm 40 years old, been to ~30 different countries. Mountain biked on 3 different continents. I work 40 hours a week, ride every weekend and often in the morning before work. I am by no means cheap. I drive a nice car, live in a nice house and have no debt - it's a matter of being smart and not being stupid with your money.

Just maximizing your 401K does not mean that you have to give up having a life.

 

[SkaredShtles]

I had a kick ass time with lots of travel, many bikes and little responsibility from age 32 to 37.

I did that from 22-29. Good times being carefree like that.

 

[Serial Midget]

So, when you discovered that it really really was your beautiful house and beautiful wife, did you ask yourself "well, how did I get here?"

Anyhow - I to drive a car that runs, live in a house with a roof and have mountain biked in 3 counties.

I'm 40 years old, been to ~30 different countries. Mountain biked on 3 different continents. I work 40 hours a week, ride every weekend and often in the morning before work. I am by no means cheap. I drive a nice car, live in a nice house and have no debt - it's a matter of being smart and not being stupid with your money.

Just maximizing your 401K does not mean that you have to give up having a life.

 

[Serial Midget]

I did that from 22-29. Good times being carefree like that.

Yeah good time... except I really did think I could make my money last forever.