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>You make $80k right now, in order to save that much by 55, you would need to contribute ~30% of your gross income to retirement, assuming an 8% return, 5% annu
by aestra 13y ago
>You make $80k right now, in order to save that much by 55, you would need to contribute ~30% of your gross income to retirement, assuming an 8% return, 5% annual salary increase and no employer match.
That would be $24,000 in just the first year, well over the federal limit for 401(k) contributions. For 2014: $17,500 ($23,000 if age 50 or older)
http://taxes.about.com/od/retirementtaxes/qt/401k-contribution-limits.htm http://taxes.about.com/od/retirementtaxes/qt/401k-contributi...
- saryant 13y agoThat's why I said the math was actually more complicated than in my example. ;) In reality, you'd want to max out your 401k and IRA options while also setting money aside in savings or regular brokerage accounts.