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10% after tax + 401k max should be more than enough for a cushy retirement. If you dont have 401k-like benefits, 15-20% will get you there.
by conanbatt 9y ago
10% after tax + 401k max should be more than enough for a cushy retirement. If you dont have 401k-like benefits, 15-20% will get you there.
- TheCoelacanth 9y agoOh, great so someone just needs to save $18k per year plus an extra ten percent of their income. That will be easy to accomplish for a typical person making the median wage of approximately $30k per year.
- conanbatt 9y agoMedian household wage in the U.S is 58k. 20% savings rate is hard to get but achievable.
- TheCoelacanth 9y agoThat's the median household income which often includes multiple workers and non-wage income. Median wage is about 30k according to the Social Security Administration[1] and they should know since they are supposed to get the wages for every single worker in the country reported to them. [1] https://www.ssa.gov/oact/cola/central.html https://www.ssa.gov/oact/cola/central.html
- conanbatt 9y agoCan a person earning 30k save 20%? I think its possible, and that would almost guarantee a safe retirement. Thats not even counting social security, which is very significant at that wage level.
- TheCoelacanth 9y agoYou said max a 401k plus 10%. For someone making 30k that's 18.5k + 3k = 21.5k which is virtually impossible for someone making 30k.