Since my company did pretty well this year, they knocked up the extra 401(k) Match a bit. They have a base matching program of $.50 on the $1, and a variable matching program depending on how well the company does. So based on this year’s performance they threw in another two quarters, and they are now doubling the amount I contributed to my 401(k) this year. The variable match amount for this year came to $1800, which has brought my 401(k) total in my company 401(k) up to $13,538. Thus far, I haven’t focused on a numeric goal for either this or my Roth account. At my company I’m contributing the maximum for matching (6% of my pre-tax income), and I’m contributing $250 a month for the Roth (8% of my takeaway pay).
Not interested in setting a numeric goal for myself – just too damn far away. Who knows what cataclysmic, world-altering events could take place between now and the time I retire. But, I do want to find some general, authoritative principles for retirement goals. Is 6% & 8% just about right? Too little? More than I really need? Because I would love to squirrel more away against my other savings goals too… In my preliminary googling, I haven’t come up with any percentage principles, so I’m going to do a deeper dive.
The only principles I’ve found are to max out each year. Last year I fell short of maxing out my Roth by $1200 so a ways to go – maybe this year, my goal should be to max it out. Does any one have a good rule of thumb for what percent of your income you should be contributing to retirement each month?
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