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Hey everyone,

I've been overthinking my retirement-specific savings rates to the point of exhaustion. Generally speaking (in %'s) and considering that my total savings rate (for retirement) is made up of both pre and post-tax vehicles, but calculated as a pre-tax % (for simplicity), am I on the right track? Is one side too heavily skewed? (Pre vs Post) What are your thoughts?

Assumptions:

  • No major debts

  • Completed the personal finance flow-chart with flying colors.

  • Age: 24, early-career

  • Goal: Financial Independence, as soon as reasonably possible, without sacrificing too much lifestyle

Rates (As a % of gross salary):

  • Pre-Tax Savings (401k, HSA): 10.97%

  • Post-Tax Savings (Roth IRA): 8.33%

  • Total personal contributions: 19.3%

  • Add Company contributions (401k, Pension, Annual HSA contribution); Grand Total: 26.3%

I've been seeing everything from 15%, to 25%, as recommendations for retirement savings rates. How much is enough, really?

Ideally, I want to save as much as possible for retirement, to reach Financial Independence ASAP. That said, other priorities need their space and I can only push my retirement % up so far. I'm looking for thoughts, advice, comments, whatever you think is helpful!



Submitted May 16, 2017 at 07:09PM by ComradeGrumbles http://ift.tt/2qq6bSL

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