The Saving Advice Forums - A classic personal finance community.

Investing 10%?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Investing 10%?

    I'm not the best with math so i need some advise. I think I'm already investing 12% but I'm not 100% sure. Here goes.

    6% -401 k. -I know that for a fact
    4% in Roth Ira- Not sure about this at all. this is how I came up with this number. I invest 100.00 a month for 16 months Jan08-April09=$1600
    40,000(ex) so I multiply my salary with 4% and it give me the amount I put in all year long.

    Is this correct?

    Sorry if this confuses you. I'm confused. Thanks for any and all input.

  • #2
    10% is your salary with the decimal point moved over 1 position.

    So if you earn $50,000, 10% would be $5,000. How much do you earn? How much are you investing?

    You are putting 6% into the 401k, so that's easy. You are putting $100/month into the Roth, so that's $1,200/year. If $1,200 is equal to 4% of your income, then yes, you are investing a total of 10%.

    $1,200 is 4% of $30,000. If you earn $30,000, you are investing a total of 10%. If you earn a different amount, then the percentage is more or less than 10%. If you earn $40,000, you are investing 9% as $1,200 is 3% of $40,000.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment

    Working...
    X