docjulius
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As much as possible. You at least want to put in a % that matches your employer match of .50 cents on the dollar... the reason for that is that you are DOUBLING your money on day one just by contributing!!! How can you pass that up? There aren't many investments you can make where you are guarenteed to DOUBLE your money on day 1!!!!
The more you put in now while you are still young, the more you will have in retirement. You have 35+ years before retirement, and that is a LONG time for the benefits of compounding interest to work its magic on your contributions you make now. The more/early you put in, the more money... the longer you wait, you will have substantially less |
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Bogie
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Paying off high interest loans will net you the most cash. |
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Shredded Cottage Cheese
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if you have an employer match program and you contribute less than the maximum, then you are leaving free money on the table. Your employer now gets to give you only 1% as opposed to the 3% he would have to if you max'ed out your contribution. Plus, that income isn't taxable right now, so it is tax deferred, lessening the bite to your pocketbook.
Up your percentage to 6% ASAP! |
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PepsiLime
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Yeah, here's the recommendation - Put as much away as you can afford!!! |
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toolman
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Pay off all your debt and save 15% of your income and you'll thank yourself latter in life |
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private
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Go for the max at 6%. You should have started ten years ago.
Just keep oooon trucking. <}:-}) |
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Janice
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Do 6% if you are able to. You will get more out of your money plus the employer will contribute more as well. You are decreasing your taxes. |
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Dani
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Student loans aren't necessarily bad debt. They are typically low interest, so if you pay the minimum on them and put the max in your 401k (or at least to get the full match) you will be doing pretty good. Start now...keep the match the same and add your raises to the student loan payments, or up your contributions and keep the student loan payments the same. Either way, get up to the full match NOW! It will really pay off in the long run. |
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Blicka
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First, your maximum isn't 6%, 6% is likely the maximum amount that your employer will match. The 2007 contribution limit is $15,500.
You should be putting at least 6% of your salary since your employer match is literally free money for your retirement.
After the initial 6% match, I would recommend starting a ROTH IRA which has an annual contribution limit of $4,000/year. I won't go into specifics but trust me, it is the best plan. Check out my website : www.financialspiderplant.com for more financial advice, please feel free to contact me with any financial questions you have and I will happily help as much as I can.
Good luck! |
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Navy Wife
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I would put in 6%, if you can afford it. School loans are important too, so my advice is to pay those off as quickly as possible while putting something towards your 401K. My employer matches dollar for dollar for the first 2% and 50 cents on the dollar for the next 2%, so I take full advantage of the FREE MONEY offered just for putting a little something away. The sooner you start putting away for your 401K, the better. I am 23 and have been putting 5% in my 401K for the past year because that's all I can afford. My co-worker is 36 and has been with the company for 15 years and has been putting in 10% for the past 9 years. She says she doesn't even notice the money being gone, because it's never in her bank account to begin with, and I feel the same. I am getting a 3% raise starting the next pay period, and I'm planning on putting that 3% in my 401K because I'm now used to living on $1900 every 2 weeks, and it's not too bad. I'm not going without and I'm paying off my student loans, so I'm fine with that. Good luck! |
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J G
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You can put $15,500 into your 401k every year. If the percentage you are putting in equals that amount, no need to change it. If your salary x 6% does not equal 15,500, then contribute the 6%. The less take home may be a burden, but it'll lower your taxable income and provide for your future. |
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tre_132mp
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i dont do the 401k. I dont completely agree with. It is saying, if you dont put your money here we are going to tax you for it and you cant get it until you are 65. That is nonsense. Who said that i will get that old. Why cant I put my money somewhere that I want to put it without getting taxed for it if i
NEED to get some out. I know that you can get it out but you have to put it back with interest because of the tax for taking it. IT IS MY MONEY I SHOULD BE ABLE TO DO WHAT I WANT WITH MY MONEY |
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pebblespro
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If you can swing it financially it's usually good to put in the maximum allowed.. It's all pre-tax earnings I think.. So, it shouldn't be too bad of a hit.. Also, it might even put you into a lower tax bracket... good luck |
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satchmo
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6% as long as they are giving you free money. |
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Safetyman
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Put in the maximum you can possibly afford. My feeling is you can't afford NOT to put in the maximum with the company matching fifty cents on the dollar. Your "friend" thirty years down the road will thank you! Good luck! |
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Paul M
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As much as you can, up to the permissible limits. If you are 30 you have plenty of time to let the power of compound interest work its magic to build your nest egg. Give it the max raw material. Plus your contributions come out of your earnings before tax and grow tax-free: you are being given free money by the government. Take as much as you can. |
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Bob W
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6%..........or at least up to the company match, then use a Roth IRA for the rest up to a total of 15% |
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SMT
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A good rule of thumb is to put 15% of your gross income towards retirement... regardless of age. In your case, make sure you put the maximum in your 401K that your company matches... 6%. Then, put the remaining 9% in a Roth IRA, up to the Roth's maximum, which is $4000 for 2007. If the 9% is more than $4000, put anything over $4000 in your 401K. (Just because the company matches to 6%, you can usually put up to around 15% into it each year.) Distributing your retirement between these two types of accounts has the best tax benefit for you, and socking away 15% ensures that you will be able to retire with dignity. For a more thorough explanation of this answer that includes examples, check out this link: http://www.daveramsey.com/etc/askdave/?intContentId=6323.
As a side note... 30 years old, decent salary, and lots of student loans? Pay off the loans!!! If you've got a decent salary and you live below your means, you'll have those knocked out in no time. Then think of what you'll be able to do with that money! |
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heybulldog
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all debt is bad debt. There is no good debt bad debt. pay off the student loans then put the max that the employer matches. |
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