I'm 37 making $44,000 a year. I'm currently putting $200 a month in to retirment plans. $100 into work sep plan which my boss also adds a % and another $100 in to a ira. Right now this is what I can afford to put in. Hoping to be debt free at 40 years old. I know it all depends on the type of life style I'll want to have so lets say comfortable. Where I could get by with my retirment ,a part time job, and ss (if its still around). How much should I be putting in?
Just be sure that you are making the maximum contribution that your boss will match. That's free money.
Depending upon your monthly cash flow, I might only contribute to the 401k up to the amount the company matches, then take the difference between that and the 15% number and put it in a regular, personal brokerage account that invests in the same stocks. You lose out on taxes and itemizing a 1099 every year; but if you need the cash right away, it's yours: no (non-tax) strings attached.
