Retirement

[jamesglewisf]

How much are you guys saving for retirement percentage-wise? How much do you want to be saving? How much do you think is enough?

Does your company have profit-sharing, 401K, stock options, anything?

[blinc]

We were saving 10% but the last year we haven't saved any! I'd like to see us putting about 15% of our income to a retirement fund. What's the current thinking? More then that? My hubby is 35 by the way if that matters... I've put 20 years in so will be drawing a good SS check when I hit retirement age. If it's still there that is.

[jamesglewisf]

Here is the budget that Larry Burkett recommends:

37-38% on housing expenses
clothing (5%)
cars and repairs (15%)
groceries (12%)
savings (5%)
debt repayment (5%)
medical expenses (5%)
life and disability insurance (5%)
entertainment (5%)
miscellaneous (5%)

The 5% miscellaneous is for stuff like hair cuts, etc.

We started with this as a guideline, and then changed it over the years. For instance, we have no debt to repay, so that 5% goes somewhere else. Our medical expenses are covered 100% by my company, so that 5% goes somewhere else.

[blinc]

How weird, Bill just walked in the door about 1/2 an hour ago with new info on his company's 401K plan. They were paying .25 on the dollar up to 6% of the gross annual income. They've increased the benefits package for the non-management personel, so to make up for it, the company is now going to contribute .50 cents on the dollar on the 401K. That's enough to get us signed up again. We're going to start out with 6% of the gross weekly pay going into the plan and work our way up from there.

[TTP]

I have been thinking about this quite abit lately to be honest.
Right now I get no benifits or anything, but when the time comes, it is going to be the company w/ the best package that I choose.
A friend of mine is putting back 27% right now, the maximum allowed...that is into the 401K. He is also getting so many shares of stock and reduced price on other purchases.
I figured up and when the time comes, I am going to find a way to put back atleast 33% of my yearly income.
I figured in the cost of living and everything for the area I'm moving and that is feasable...I can also send $500 a month back to my mom on the plan I have in my head. This is all assuming I pull the minimum starting salary that my field brings. I will be putting even more back for the first couple of years if I get the kind of job I want which involves alot of traveling and the company I'm currently looking for pays for everything on those trips so...I'll get back to you when I can actually put this plan into action.

[PsalmReader's Mom]

Have a question . . . Our little company is starting a matching funds Simple IRA. I'm 52, and plan to work another 5 to 10 years. My husband has participated in the 401k plan at the aluminum plant where he works for years. We live very modestly, so my income has never been a "make or break" factor. I'm planning on contributing the maximum.

Here's the question: We can choose what mutual fund we wish to invest in. I'm leaning toward one of the biotechnology funds. I know the risk is higher, but as I said before, my income is not crucial, and I'm not afraid of the ups and downs. Am I making a mistake? Would appreciate input.

[keithster]

Can I ask why biotech?

[jamesglewisf]

I can't comment on the biotech part, but I think your reasoning about taking on more risk is sound. If the downside won't hurt you, then go for it.

[PsalmReader's Mom]

keithster, I think biotechnology is going to progress by leaps and bounds in the very near future. I have some experience with the treatment of cancer and see the optimism of the people who work in that field. Also, if the news can be believed, there are many, many drugs, therapies, etc. (not just for cancer, but other dread diseases) now in late trial stages which will relieve a lot of pain and suffering if approved. That is my theory. Hope and pray it proves true, for many reasons.

So Mr. Jim, glad to know you think my plan is not too "hairbrained." Makes me feel a little more confident.