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Hi there, I wanted to get some feedback on if I am on the right track for retirement savings. I turned 40 in February and it was kind of a wake up call to me as to I really should be saving more than I was. Here are the details:
Age: 40
Single
No house. Renter in the Bay Area, CA (housing prices are ridiculous here, and it's not really on the top of my list to own anyway)
Credit Card paid off each month
$600/mo car payment (payment is actually $450/mo @3.9% but I am paying extra) Orig loan $25k, current balance $15k
Retirement Savings to date : 150k
Until recently (maybe 4-5 months ago) I was putting about 9-10% into my 401k (along with company match of 6%), and had been the last 8 years. I got a decent promotion at the end of last year so I started to max out my 401k in February. Huge jump and I find myself having to watch my budgeting far more than I was, but I think its the right move and probably good for me in the long run.
Also, started to max out my Roth ($458/mo) as opposed to the past I would fluctuate between $200-$400/mo.
BOTH my 401k and Roth IRA are 100% "Target Retirement Date Funds". Roth is in Vanguard, 401k is Merrill Lynch.
I can survive on this ok I think, and still sock away other money each month for my regular savings account (which needs some work, I admit, but I am getting there)
Is there something obvious that is wrong with my approach? I choose the Target Fund because I really don't know much about investing and am leary to do things myself.
Advice? Suggestions?
Thanks!
Age: 40
Single
No house. Renter in the Bay Area, CA (housing prices are ridiculous here, and it's not really on the top of my list to own anyway)
Credit Card paid off each month
$600/mo car payment (payment is actually $450/mo @3.9% but I am paying extra) Orig loan $25k, current balance $15k
Retirement Savings to date : 150k
Until recently (maybe 4-5 months ago) I was putting about 9-10% into my 401k (along with company match of 6%), and had been the last 8 years. I got a decent promotion at the end of last year so I started to max out my 401k in February. Huge jump and I find myself having to watch my budgeting far more than I was, but I think its the right move and probably good for me in the long run.
Also, started to max out my Roth ($458/mo) as opposed to the past I would fluctuate between $200-$400/mo.
BOTH my 401k and Roth IRA are 100% "Target Retirement Date Funds". Roth is in Vanguard, 401k is Merrill Lynch.
I can survive on this ok I think, and still sock away other money each month for my regular savings account (which needs some work, I admit, but I am getting there)
Is there something obvious that is wrong with my approach? I choose the Target Fund because I really don't know much about investing and am leary to do things myself.
Advice? Suggestions?
Thanks!
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