Retirement

[KiwiJo09]

So I found this link: AARP Retirement Calculator - How to Retire, Plan for Retirement to the retirement calculator and I was wondering how accurate that really is. It reminded me that I need to enroll in my company's 401k, which I did on the spot after my calculations!

I can't be a poor old person. So I enrolled at 5% because I have no idea at what percent to start, but the company matches up to 6%. I have no idea what I'm doing, but at least I'm trying, right? LOL

[riverwed070707]

Definitely take advantage of the full match at minimum. Otherwise you're missing out on free money. If you can afford it, I'd strive for 10% and work to increase that to 15% over the next 3-4 years.

[Aleta]

I would strive for the 6% that the company matches. That is free money. Then, you could think about opening up a Roth IRA (After taxes)later on.

[bjl584]

Contribute at least to the company match. Don't pass up the free money.

I'd argue that you should strive to save 20% of your income in order to retire in relative comfort. That doesn't all have to be in your 401K, but as a whole I'd shoot for 20% or more if you can swing it.

[jpg7n16]

So I found this link: AARP Retirement Calculator - How to Retire, Plan for Retirement to the retirement calculator and I was wondering how accurate that really is.

It's a calculator of the future, based on estimates and assumptions. So will it be 100% accurate? No way. Will any financial calculation about the future be 100% accurate? No way.

It is a guide. Based on what we know today, you should do this. Then re-evaluate each year to make sure things are still on track. Adjust as needed.

I can't be a poor old person. So I enrolled at 5% because I have no idea at what percent to start, but the company matches up to 6%. I have no idea what I'm doing, but at least I'm trying, right? LOL

Did 5% just sound like a good number? Or did you use some calculation to back that up?

What does the calculator estimate that the future will look like if you only do 5%?


I would do 6% bare minimum. No way in the world should you pass up free money.

And when you're unsure what to do about savings, err on the high side, not the low side. It's better to oversave and have too much money, than to undersave and have too little.