Quote:
Originally Posted by geojen
Not the hijack the thread, but I have a question. Should people be saving 10% of their total income or each income. For example, I and DH each put 5% of our pay into our 401Ks at work. Does this equal the 10% rule for investing? Or do each of us need to do this for it to count as 10%. I realize that we should both count on doing the 10% or more eventually, but right now we are still working our snowball.
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5% of x+5% of y=5% (x+y). You are only saving 5% of your income.
10% is a good foundation, I think most planners these days suggest 15% (which could include match). T Rowe Price recomends 15% from all sources be set aside for retirement.