Matching amounts is minimum. I wish I'd saved even more when in my 20's.
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401k-Roth IRA- company doesn't have matching.....????
- Thread starter jpm2953
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So this is going to be sticker shock for some of you guys but roughly every $300K you have will allow you to draw out $1K monthly comfortably in retirement. YMMV. But you can save/invest/grow well above this amount pretty easily for someone starting out in their 20s. I didn't start seriously messing with this until my middle/late 30s so I've had some serious catching up to do. I could have invested a little bit of money through my 20s and gotten a damn good head start until my job situation improved in my 30s. I'd give my left nut to get that 10 year advantage back.
Glad to see people interested in this stuff, I wish I had knowledgable people to show me when I was younger instead of learning it on my own...
Glad to see people interested in this stuff, I wish I had knowledgable people to show me when I was younger instead of learning it on my own...
yah i'd kill to have started earlier than i did. I started right before i turned 30 and just played with it and got a little more serious over the past couple years. my goal is at least 750k and according to most calculators that should be fairly easy to do over the next 23 years with a retiremnet goal of 55
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And if you only return 4%, you'd never even touch the principle.
If people could build a $500k retirement fund, return 4%, they could withdraw $3k every month and not run out of funds for over 21 years. 6% return would allow over 30 years of withdrawals.
Hell I'm almost 40. We have a couple of little ones started. We have been meeting with a guy and he said I need to invest 1800 a month to retire at 65. I wish I had started earlier as well.
YES!!! My post was getting long lol, but there's a good possibility of building enough interest on a large sum like that post retirement that you'd never touch the principle.
If you live within your means before you retire as well as after you retire, save as much as you can, you will be fine. That means NO DEBT. There are always life emergencies that will come up, be prepared for them.
If we had 401k or Roth IRA early on we would be much better off, but still retired at 62.
If no match on 401k then max out Roth first.
If we had 401k or Roth IRA early on we would be much better off, but still retired at 62.
If no match on 401k then max out Roth first.
Consider 10% in a 2050 target plan, 20% in a 2055, 30% in a 2060 and 40% in a 2065. Laddering your investments and accepting more risk over longer time periods. Use with either a Roth or 401k, works for both. This is what I have done. IRA accounts with SEPIRA money and 401k rollover money.
NOTE: The target dates above are for the OP and his age, adjust to suit your own age and retirement dates.
I am now in RMD territory and have 10% of my distribution go to Federal Income tax, none to Georgia, as GA doesn't tax until much higher levels....so I don't owe/pay ANY GA income taxes since retired.
NOTE: The target dates above are for the OP and his age, adjust to suit your own age and retirement dates.
I am now in RMD territory and have 10% of my distribution go to Federal Income tax, none to Georgia, as GA doesn't tax until much higher levels....so I don't owe/pay ANY GA income taxes since retired.
One question is are there investment restrictions on either plan ( like money is only invested in company stock). If there are restrictions be careful that they don't put your money at more risk than you are comfortable with.
Don't worry about that for now. Just keep putting something away every month. Max roth if/when you can. Maxxing a roth ira for 20-30 years will get most people enough to live in retirement.
