Quote:
Originally Posted by adaway
Sweeps, jimOhio...yes I will make changes to max out 401k contributions (change from 3 to 8%.) I have to wait a few months before I am permitted to make the change but it takes first priority on my list of changes to make.
After I make that change should I at some point look into an IRA to contribute an additional 2% of salary? That would total up to 10% salary going towards retirement...I thought I read that this is the recommended percent that one should contribute. I am in my mid-30's and I had a late start to retirement contributions. Current total in 401k is only ~6k.
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I might suggest increasing from 10% contribution to retirement to around 15 or 20%.
8% into 401k is a good step.
You can put up to 5k into an IRA in 2008.
I don't see any comments about single or married- if married, spouse can also contribute 5k to an IRA.
6k right now is not much, but adding to the accounts a little each month will make a huge difference. In 5 years, You will probably have between 60k and 100k set aside, within 10 years you might have 200k. It takes patience and time. Being in your 30's is not behind. You have 35-40 years to let money compound.