Comments

  1. Some company programs allow you automatically increase your percentage contribution if you get a raise. Others can schedule a % increase on a schedule that you create. If either of these options is not available, you can always manually make the % contribution change yourself. As the post discusses, automation and paying out before you ever see it in your paycheck is key. Otherwise you may be less likely to contribute.
    My recent post Day 300 – $60K Project: Year 2

    • I definitely agree 60k project! Automating everything is absolutely crucial! I also love the idea of increasing your % contribution each year automatically through a plan set forth with your employer.

      If you could just increase by 1% each year, that would turn in to quite a savings over a 25 year career!
      My recent post My Personal Finance Journey Vs. The United States of America – Round 2 – What Interest Rate is Your Savings Account Earning?

  2. Andrea @SoOverDebt says:

    We had a mandatory 403b meeting recently at work. I was so sad to hear one of our maintenance guys (in his 50s) say he was “thinking about” opening a retirement account! I can't imagine getting started so late; of course he's likely to have Social Security, but still. I'm so glad I got my head on straight and started a Roth – auto contributions FTW!
    My recent post Yakezie Update – Check out my Member Post!

    • Oh wow! That is too bad to hear about the 50 year old who didn't have a retirement account yet! What age were you when you opened your Roth?!
      My recent post My Personal Finance Journey Vs. The United States of America – Round 2 – What Interest Rate is Your Savings Account Earning?

  3. I agree with Jacob that it should be based on an individual situation. While I save a good portion of my income (liquid savings accounts, non-qualified investment portfolio and retirement) most of my saving is into liquid accounts for a future home.

    • Thanks for reading Evan! Saving for a home is almost always a great investment! I've really enjoyed owning a condo this past year and not being subject to arbitrary rent increases of $10-$20 every couple of months! Ridiculous!
      My recent post My Personal Finance Journey Vs. The United States of America – Round 2 – What Interest Rate is Your Savings Account Earning?

  4. The whole early retirement thing seems to hinge on accumulating a large nest egg EARLY in life. That means maximizing contributions to every investment possible–401k/403b, IRA’s and non retirement assets. If you’re doing that, a Roth IRA should be a part of it, since you can withdraw your contributions at any time without paying taxes or penalties. You can build up money tax free, but still have the contributions available as maybe a secondary emergency fund. One of the drawbacks to loading up on retirement accounts early in life is access–the Roth covers that nicely.

  5. Parvinder says:

    Still I’m young. But I know that planning ahead is worth doing it. I agree with 60K plan. I just created my emergency fund and now I want to dedicate my savings to my retirement. I thing an automatic plan can work great.

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