Anybody else not care about retirement savings? (cheap, senior, investment)
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Personally, if I could transition jobs I would do something that has a pension. You don't have to worry about anything until you do your time and the checks come strolling in.
Suppose you change your mind about working indefinitely, but because you did not save anything, you have no options? . The choice between saving for retirement (or at least the future), is a 'no-brainer' for anyone who hopes to continue to enjoy the future ... as much as they enjoy today.
If I change my mind, then I'm out of luck. We eliminate "options" all the time in our life, keeping this option open is very costly and, at least to me, not worth the costs.
My enjoyment really is not derived from having money, and as I stated the "worse case" would be retiring on social security, which to me isn't so bad.
Personally, if I could transition jobs I would do something that has a pension. You don't have to worry about anything until you do your time and the checks come strolling in.
Unfortunately, there's little chance you would keep the same job long enough to make our well on pension.
Where do you folks get the money to contribute $500 to $800 a month to a retirement fund? I just don't understand it.
High income with 15% devoted to your 401K / Roth IRA / Roth 401K
That isn't important though, what is important is that everyone should probably try to put 10 - 15% into a retirement account, whether it is someone making minimum wage, or someone making a million a year.
Here is an example for someone making minimum wage who contributes 15% to their retirement account starting at age 25 and retires at 60:
$7.25*40 hours a week * 50 weeks a year = $14,500 / year
$14,500 * 0.15 = $2175 / 12 months = $181 / month
Lets say there is no company match. And the investments make 6% a year
Final Savings Balance after 35 years = $268,078.69
^^ that is pretty good, and would generate $10,723 / year for this person if it returned 4% a year after that. It wouldn't be enough for someone who makes a million dollars a year, but it sure as hell would be enough for someone who lived for 35 years on minimum wage to retire on. But the hardest part of all of this would be trying to find the $181 a month to put in a retirement account if you made minimum wage. Some people do it though, so it is possible!
Where do you folks get the money to contribute $500 to $800 a month to a retirement fund? I just don't understand it.
Higher income and lower spending. I contribute more than average due to my reasonable income and very low spending. I put $49,000 into my 401k per year... mostly because I don't want to pay the IRS any of it.
Higher income and lower spending. I contribute more than average due to my reasonable income and very low spending. I put $49,000 into my 401k per year... mostly because I don't want to pay the IRS any of it.
I have heard that is possible-- but how do I do that?
I thought the limit was $16,500? It seems to cap off in my 401K plan once it hits this amount per year... How do I contribute more?
I have heard that is possible-- but how do I do that?
I thought the limit was $16,500? It seems to cap off in my 401K plan once it hits this amount per year... How do I contribute more?
There's a lot of confusion of what the limits are. The maximum that can be placed in a 401K per year is actually $49,000. The $16,500 limit refers to how much an individual can contribute from their salary. The remaining $32,500 must be contributed by an employer. The easiest way to do this is to become self-employed, rather than settling to work for someone else.
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