Comments on: 15-Minute Resolution #1: Save More For Retirement

By: Man vs Debt – Who Will Win? | Money Smart Life

Man vs Debt – Who Will Win? | Money Smart Life — Sun, 17 Jan 2010 07:33:44 +0000

[...] 15-Minute Resolution #1: Save More For Retirement @ My Money Blog [...]

By: Laura

Laura — Fri, 08 Jan 2010 19:25:27 +0000

Great idea! I increased mine 2%, thanks for the reminder!

By: MakingItWorkInNJ

MakingItWorkInNJ — Thu, 07 Jan 2010 17:26:26 +0000

I have about $5600 in my Roth and $14k in my 457(b) (The government 401(k)…basically the same thing except the taxpayer gives me no match. But I’m ok with that.

Because I am a government employee, I also get a pension. I currently contribute 10% but will increase it to 14% in March and then 18% in July (I get 3.5 increases in March because of annual raise and another 3.5% for cost-of-living increase). I have decided though to move $19k-$20k over to my pension so that I can buy back time. When I’m 55 I will have 35 years in the pension and can retire young with full medical. (please, do not hate! I WORK for my money providing needed services to college kids, faculty, and sometimes the parents). It’s all pretax so I still come out ahead…I just lose a couple of years in my 457(b), but I get my medical much earlier in case I need to leave at 50. I did no increase last year because of furloughs, but I kept my contributions the way they were as if I was not furloughed. I am glad it’s almost over and hopefully new guy in Trenton doesn’t bring them back.

I do wish I had started doing more in my 20s, but when you’re in your 20s, you just want to get ______ and _______. LOL.

By: Kevin

Kevin — Wed, 06 Jan 2010 21:36:39 +0000

Starting in my 20′s I did annually max out my retirement contributions, but since 10% furloughs hit my workplace this last year I drastically cut back on retirement savings. It is much easier to save when you are younger and don’t have kids and a mortgage.

By: bruce

bruce — Wed, 06 Jan 2010 20:30:53 +0000

If you had to fund a ROTH IRA or Health Saving Account (HSA, high deductible health account), which one would you fund or maximize first?

By: Brian

Brian — Tue, 05 Jan 2010 21:13:30 +0000

It is much easier for those of you in your 20′s to save enough than if you’re first starting in your 40′s. Perhaps 10% should be the goal, but start out small and increase the pain over time…

I have been saving for just a handful of years and am almost at the 6 digit level. I wish I had started much earlier.

Very nice article.

By: Robert

Robert — Tue, 05 Jan 2010 14:07:38 +0000

I’ll have to count my contributions to the Employee Stock Purchase Plan. I set aside a significant chunk of money towards that that will start with my first check. Guaranteed 5% return on my investment once the stock is issued only 6 months from now. Maybe I’ll put some of that into my IRA.

By: MikeS

MikeS — Tue, 05 Jan 2010 00:57:53 +0000

Haha, great minds think alike. I had just updated my 401k deferral this past weekend! My “resolution”, if you will, was to up the amount 1% per year until such time as I am maxing out my 401k contributions allowance. Perhaps if they keep upping the limits I may never get there but at least my saving will improve without a massive ding to the take home pay along the way…

By: Jonathan

Jonathan — Tue, 05 Jan 2010 00:12:20 +0000

@Jake – Good idea, thanks for sharing.

@Scott – Excellent!

By: Scott

Scott — Mon, 04 Jan 2010 23:06:19 +0000

Done! Upped mine from 4% to 10% which puts roughly half of my annual raise toward retirement. Maybe next year I can max it out!

By: Jake

Jake — Mon, 04 Jan 2010 20:19:33 +0000

Idea: if you received a small salary increase starting Jan 1 (e.g. cost of living adjustment, etc), you could take that entire increase and put it away into an account – you wouldn’t even miss it since your “effective” pay-check will stay the same…