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Old 02-28-2007, 08:38 AM
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Big G Big G is offline
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Default Re: 401(k) and Investing

Quote:
Originally Posted by jIM_Ohio
If you are saving 10%, you are clearly living below your means. If something happens you can stop the retirement contributions to get a 10% raise (short term). 15 or 20% savings rate would be even better, 10% is where it all starts (if you want some examples, please ask).
I've always heard to set aside 10% but I don't know why. So I guess I'll take you up on examples. I have no idea of what percentage I'm investing now, I know 5%(401k)+3%(employee stock option) =8% I would assume stock options do not count in this figure.

Quote:
Originally Posted by jIM_Ohio
Goal #2 would be an emergency fund equal to 2-3 mos expenses of your new combined gross income.
I would count my savings account as an emergency fund, it gets $200 a month.

Quote:
Originally Posted by jIM_Ohio
You did not mention fiance's income, savings level, debt level etc... Prior to getting married, we needed to pay off my wife's consumer debt and do a few things to repair her credit score.

Have you taken a financial course with your spouse? We took one thru our church and it was a positive experience. We took a second during pre-canna. I strongly suggest starting financial discussions now... even after doing the two courses, we argue more about finances than we do anything else.
We haven't really talked about finances yet ... I never thought of taking a financial course, will have to look into that! She's a teacher and it making a little less then I am, she has some credit card debt, and student loans. She has a retirement from the state, not sure of the percentage
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