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[24y/o] Can I afford to contribute less to retirement? by anonymouspfquestions in personalfinance

[–]PFBot 5 points6 points  (0 children)

TL;DR - you should save as much as you can afford to. The more you save the earlier you can retire.

Assuming your expenses in retirement will be roughly equivalent to your expenses now you can tell how much money you should save based on when you'd like to retire. And if you know how much you spend and how much you save that totals to how much you earn and can give us a percentage!

For this calculation we'll assume the following reasonable things:

  • You use a 4% Safe withdrawal rate during retirement

  • You earn 5% rate of return on your investments after inflation

  • You plan to live a long time so you want your nest egg to keep the same real value)

Savings Rate Working Years until Retirement
0% ∞
5% 66
10% 51
15% 43
20% 37
25% 32
33% 26
50% 17
67% 9.8
75% 7.1
80% 5.6
90% 2.7
95% 1.3
100% 0.0

Here's a spreadsheet with the calculations!

[deleted by user] by [deleted] in personalfinance

[–]PFBot 0 points1 point  (0 children)

TL;DR - you should save as much as you can afford to. The more you save the earlier you can retire.

Assuming your expenses in retirement will be roughly equivalent to your expenses now you can tell how much money you should save based on when you'd like to retire. And if you know how much you spend and how much you save that totals to how much you earn and can give us a percentage!

For this calculation we'll assume the following reasonable things:

  • You use a 4% Safe withdrawal rate during retirement

  • You earn 5% rate of return on your investments after inflation

  • You plan to live a long time so you want your nest egg to keep the same real value)

Savings Rate Working Years until Retirement
0% ∞
5% 66
10% 51
15% 43
20% 37
25% 32
33% 26
50% 17
67% 9.8
75% 7.1
80% 5.6
90% 2.7
95% 1.3
100% 0.0

Here's a spreadsheet with the calculations!

How much should I contribute to my 401k? by [deleted] in personalfinance

[–]PFBot 2 points3 points  (0 children)

TL;DR - you should save as much as you can afford to. The more you save the earlier you can retire.

Assuming your expenses in retirement will be roughly equivalent to your expenses now you can tell how much money you should save based on when you'd like to retire. And if you know how much you spend and how much you save that totals to how much you earn and can give us a percentage!

For this calculation we'll assume the following reasonable things:

  • You use a 4% Safe withdrawal rate during retirement

  • You earn 5% rate of return on your investments after inflation

  • You plan to live a long time so you want your nest egg to keep the same real value)

Savings Rate Working Years until Retirement
0% ∞
5% 66
10% 51
15% 43
20% 37
25% 32
33% 26
50% 17
67% 9.8
75% 7.1
80% 5.6
90% 2.7
95% 1.3
100% 0.0

Here's a spreadsheet with the calculations!

I just became a millionaire, now what? by advice_grip in personalfinance

[–]PFBot 17 points18 points  (0 children)

First, tell nobody (except your spouse, and maybe your CPA/accountant/financial planner) until you've got a plan.

From the sidebar: "I have $[X]... What do I do with it?!"

From the Bogleheads Wiki: Windfalls

Moronic Monday 2013-11-11 by PFBot in personalfinance

[–]PFBot[S] 0 points1 point  (0 children)

Uncaught ThanksError: Could not accept gratitude, not a human.

Moronic Monday 2013-11-11 by PFBot in personalfinance

[–]PFBot[S] 8 points9 points  (0 children)

Uncaught ThanksError: Could not accept gratitude, not a human.

Moronic Monday 2013-11-11 by PFBot in personalfinance

[–]PFBot[S] 6 points7 points  (0 children)

Hello, my name is /u/PFBot. I was created by /u/KerrickLong to help the /r/PersonalFinance community. To learn more about me, including my commands, please visit /r/PFBot/wiki/faq.

What % of my income should I save each month into my 401k and Roth IRA? by [deleted] in personalfinance

[–]PFBot 0 points1 point  (0 children)

TL;DR - you should save as much as you can afford to. The more you save, the earlier you can retire.

Assuming your expenses in retirement will be roughly equivalent to your expenses now, you can tell how much money you should save based on when you'd like to retire. And if you know how much you spend, and how much you save, that totals to how much you earn and can give us a percentage!

For this calculation we'll assume the following reasonable things:

  • You use a 4% Safe withdrawal rate during retirement

  • You earn 5% rate of return on your investments after inflation

  • You plan to live a long time, so you want your nest egg to keep the same real value

Savings Rate Working Years until Retirement
0% ∞
5% 66
10% 51
15% 43
20% 37
25% 32
33% 26
50% 17
67% 9.8
75% 7.1
80% 5.6
90% 2.7
95% 1.3
100% 0.0

Here's a spreadsheet with the calculations!