Re: 401(k) and Investing
The 10% savings amount is a somewhat arbitrary amount of saving towards retirement. Most just state this amount as a first step - it is a good goal to start off with.
I also would argue that it is more difficult for someone who makes $32,000 to put 10% into retirement over someone who makes $100,000 a year. Someone who makes $32,000 a year probably needs most of their income to pay for necessities, while someone who makes $100,000 a year doesn't (necessarily) need all of their money for necessities, they would likely have much more "wiggle room" to have more fun with their money. Just my opinion though.
It is really just a case by case basis. For example, I save 25% of my income and I have a pension. My goal is to retire by age 50-55 though (I'm 24 now and make $35,000/yr.) so that is why I am saving so aggressively.
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