Saving 15% for Retirement.

**disneysteve** · 12-26-2010, 01:07 PM

What is the situation with the job ending? Will you be unemployed at that point or do you have something else in place? If you might have a period of no income, I'd be piling up cash and not worrying about the retirement account and definitely not the college fund right now.

**fruitbowlk** · 12-26-2010, 01:31 PM

Originally posted by disneysteve View Post

What is the situation with the job ending? Will you be unemployed at that point or do you have something else in place? If you might have a period of no income, I'd be piling up cash and not worrying about the retirement account and definitely not the college fund right now.

My job is to end in August 2011. I would receive a severance package and unemployment which should carry me over until I find another job.

**disneysteve** · 12-26-2010, 04:41 PM

If you know your job ends in August, I'd hold off on the Roth contribution. Hold onto that money in case you need it. Once you are back to work, you can make the contribution then, even up until April 15, 2012.

As to the original question, 15% to retirement is probably adequate. If you can do more, that's great, but if doing more means not meeting other goals, then stop at 15% and take care of the other needs.

**MonkeyMama** · 12-26-2010, 06:26 PM

Agreed. Hold off on the ROTH contributions until the job situation is ironed out, and take care of other financial goals before putting more than 15% to retirement.

**Drac** · 12-30-2010, 06:53 AM

Remember that at this point an emergency fund is more important than saving for retirement. Specially now that your job will terminate. Have at least six month worth of expenses in savings. Looks like the economy is getting better and hopefully you will find a job in less than six month, but you never know, and one thing is for sure, you will never regret having money on your emergency fund.
Best luck.

Saving 15% for Retirement.