401k, how much do you put in % wise?

[Tweak155]

Oh, I see what you meant.

I'd personally roll all old 401k accounts into one IRA account for myself. Then use the new company's 401k to get their match. If that is too much to handle, then just roll it all into the new company's 401k if you can.

I see, because you'll probably have better investment options with the IRA, thus earning more on a "dead" account that you don't get a match for anymore. Rolling it into the new company limits your investment options, thus limiting your earning potential on an account you could have improved.

I'm not totally hopeless! (Unless I'm wrong!)

 

[roguerower]

25, single, no commitments, so I'm in while the getting is good. 25% maxes me out and I get a 4% match (@ 100%) by the employer. Still have plenty of money left over to play.

 

[xochi]

I see, because you'll probably have better investment options with the IRA, thus earning more on a "dead" account that you don't get a match for anymore. Rolling it into the new company limits your investment options, thus limiting your earning potential on an account you could have improved.

I'm not totally hopeless! (Unless I'm wrong!)

In addition to more options, more control over expenses. Over a long period of time this could be a significant amount of money.

 

[rh71]

6%, my company give 100% up to 6%.

this... they don't compensate us well (hence wouldn't put more anyway) but the benefits are good overall. I started that at 22 which was 12 years ago. I should be pretty good when I'm gray. Umm... we, I meant we.

 

[coloumb]

15% + Employer match 50% of first $8k contributed. System is setup where we can increase our contributions [1%, 2%, etc] annually automatically [we've managed to get raises every year so 1% isn't noticeable]

Just looked at my 401k - they are doing an awesome job at making sure I'm in good shape for retirement [pension + [praying] social security is still around when I retire]!

 

[Elbryn]

If you work for a public (state/municipal/ect) employer the matches are usually much higher than private companies since the salaries are typically lower. My wife used to work for a state hospital in Iowa and had a 403b plan that the employee put in 5% and the state put in 10%. But they made about 25% less than other private employers for similar jobs too.

though without having to pay social security it works out about the same. the 5% employee pays is about the 4ish% that they used to pay to ss and the 10% from state works out to be about a 3ish% match after taking out the ss tax.

benefit comes along later on as spouse can put in for social security too i think but may be severely reduced if getting a pension from one of those systems.

 

[LurkerPrime]

Here are my savings rates since I started working in 2006. These rates include the 5% employer matching and are a % of my gross base pay
2006: 13.1%
2007: 15.6%
2008: 22.2%
2009: 27.2%
2010: 25.7%
2011: 24.3%
2012: ~24%

I started maxing my contribution around mid 2008, so I caught the falling knife of the stock market crash. My overall portfolio is up a little over 25% since inception, which doesn't seem that great, but if I calculate the average annual rate of return, its around 8%. If I can keep my annual return at around the 8% mark, then I can retire in 26 years and retain my same pre-retirement income level with only withdrawing a safe 3% annual from my 401k. None of this takes into account SS, so if its still around by that time, then it'll be extra fun money for me.

 

[kranky]

I see, because you'll probably have better investment options with the IRA, thus earning more on a "dead" account that you don't get a match for anymore. Rolling it into the new company limits your investment options, thus limiting your earning potential on an account you could have improved.

I'm not totally hopeless! (Unless I'm wrong!)

In addition to more options, more control over expenses. Over a long period of time this could be a significant amount of money.

Probably the most important reason to convert old 401ks to an IRA - so you can invest in funds with lower expenses. People don't always appreciate the cumulative impact of funds with high expenses.

Comparing a 401k fund that charges 1.3% per year vs. a similar fund in an IRA that charges 0.3%, it may not sound like that much difference - it's only 1%. But that 1% difference gets charged every year. And after 20 years, you have 20% less money than you could have had.

 

[vi edit]

though without having to pay social security it works out about the same. the 5% employee pays is about the 4ish% that they used to pay to ss and the 10% from state works out to be about a 3ish% match after taking out the ss tax.

Many muni's and state employees still pay SS. I think teachers are one of the few that don't.

 

[xochi]

Probably the most important reason to convert old 401ks to an IRA - so you can invest in funds with lower expenses. People don't always appreciate the cumulative impact of funds with high expenses.

Comparing a 401k fund that charges 1.3% per year vs. a similar fund in an IRA that charges 0.3%, it may not sound like that much difference - it's only 1%. But that 1% difference gets charged every year. And after 20 years, you have 20% less money than you could have had.

Glad to see another Boglehead

Here are three guidelines i like to follow.

1. Expenses do matter! keep them as low as possible
2. Keep it simple
3. Find an asset allocation you like and stick to it

More info http://www.bogleheads.org/wiki/Main_Page

 

[Turin39789]

My employer has a 401, but no match. I have been doing a roth with Vanguard to the max and then using the crappy fund choice 401 for the tax advantage.

 

[Jadow]

23%, and get a 7% match on top of that.

In 2 years it goes up to 9% match

 

[fitzhue]

I contribute 12%, employer matches 50% of the first 6%. They will also contribute 10% of anything over 6% in common stock.

 

[lokiju]

6% of it is mine and my company matches 50% on a max of 6%, hence my 6% contribution.

Assuming I get a raise at the end of the year, I'll take some or all of that increase in pay and put towards my 401k.

I started doing it in January of this year and between my contribution, my companies match amount and earnings off of investments I'm sitting on just shy of $6k.

 

[Corporate Thug]

YOLO!!!!

/thread.

 

[CountZero]

10% including the match but I'm paying off student loans so I need to balance saving for retirement vs paying off debt....yay?