Curious: What Percentage of your gross Income are you Investing Annually

[Net]

What percent of your gross income (with any additional income included) are you investing annually?

 

[eldorado99]

Investing in what?

 

[rh71]

^ he means gambling. 6% 401k and 5% company stock (solely because of discount). I'm not a gambler at all, but apparently, that's the only way to get ahead these days.

 

[eldorado99]

^ he means gambling. 6% 401k and 5% company stock (solely because of discount). I'm not a gambler at all, but apparently, that's the only way to get ahead these days.

I prefer to invest in beer, it has never done me wrong.

 

[gorcorps]

I only invest 5% of my own plus 6% company match.

 

[Jumpem]

11% plus 6% company match. I want to get the 401k up to 20% total for both my wife and I, and fund a pair of Roth IRAs.

 

[dave_the_nerd]

11% (5% 401k + 6% Roth IRA) plus 5% (401k) company match.

 

[Net]

Investing in what?

equities or investment properties but not a house if its your primary residence

 

[brianmanahan]

50% of gross income into tax deductible 401k + after tax 401k + roth IRA + taxable accounts + I bonds + savings account

 

[soulcougher73]

10% of my own, measly 3% company match. They match 50% up to 6%. Seems chinsy to me, but i take the free money anyways.

 

[zCypher]

50% of gross income into tax deductible 401k + after tax 401k + roth IRA + taxable accounts + I bonds + savings account

lol wtf?

 

[brianmanahan]

lol wtf?

i just spend 20-25$k a year and save the rest. still living the same as i did when i graduated from college 10 years ago.

trying to be able to retire by 45 or 50, because i don't know if i'll be able to work past that age due to medical problems.

also need to have money on the side to support my parents' retirement.

 

[Herr Kutz]

14-15% and it's 100% in the stock market at this time.

Not sure if it's enough

 

[KentState]

Max 401k, but it sucks that you can't put more than 18k in. At least the company does a 100% match up to 5%. Also do the 5k in a Roth and a little messing with stocks. My goal is to also sock away around 60k cash savings a year, but it seems 30k is all I can do. At some point I will have to convert some of that into an invest.

 

[alcoholbob]

10% in seeds and canned food for the bunker.

 

[Net]

Max 401k, but it sucks that you can't put more than 18k in. At least the company does a 100% match up to 5%. Also do the 5k in a Roth and a little messing with stocks. My goal is to also sock away around 60k cash savings a year, but it seems 30k is all I can do. At some point I will have to convert some of that into an invest.

There's a new IRS ruling where you roll over your after tax 401k contributions to an roth ira (when changing companies or retiring) without being taxed during the conversion. Of course your company needs to allow for after tax 401k contributions.

So you could max out your 401k and then do the after tax contribution. It's pretty amazing, it went into effect on Jan 1, 2015. I just read up on it, found out from a friend.

"In essence, you can now contribute over $50,000 per year into your Roth IRA," says Brian Frederick, CFP professional and associate financial planner at Intrinsic Wealth Counsel in Tempe, Arizona.

Good article about it here: http://www.bankrate.com/finance/retirement/after-tax-401k-rollover-to-roth-ira-rules.aspx

 

[brianmanahan]

Max 401k, but it sucks that you can't put more than 18k in.

but if your company 401k plan allows in-service withdrawals of after-tax (not roth) 401k contributions, you can put about 30$k extra into your 401k each year and then roll that over to a roth IRA.

edit: yep, what net said. i've been doing that for a few years now, even before the official ruling came out. figured i would take my chances.

 

[Dr. Detroit]

After tax - Close to 40%. Will go up once the kid finishes college.

401K gets maxed every year. I also put the max into the company ESPP.

 

[Jeff7]

38%.
Company matches 50% on up to 6% of gross for 401k, so a 3% match in the end. It at least makes a dent in the expensive investment options there.

lol wtf?

Some people aren't spendy.

 

[Ruptga]

Exactly zero because I believe in never investing money I can't afford to just light on fire, and because the expected ROI on paying off debt is better. I live simply, so at some point I won't have debt and I will look at investing, but I may get around to it sooner if I ever have access to discount stock, etc.

 

[Imp]

I sucky sucky for 5 dolla and I sucky sucky once a month, so 60 dolla a year.

 

[ControlD]

I sucky sucky for 5 dolla and I sucky sucky once a month, so 60 dolla a year.

The question was about investing, not ingesting.

 

[zCypher]

i just spend 20-25$k a year and save the rest. still living the same as i did when i graduated from college 10 years ago.

trying to be able to retire by 45 or 50, because i don't know if i'll be able to work past that age due to medical problems.

also need to have money on the side to support my parents' retirement.

That's pretty crazy intense/agressive, kudos to you for being able to sustain that. Can I ask what kind of strategy you're using? Since at some point, you run out of company match / tax-deferred/favorable options etc.

For me I was doing 10% pension (company matches most of it), 10% company shares (company matches a good portion), close to 10% into RRSPs and what little I could save from biweekly pays and tax returns either back into other RRSPs or TFSA. Although I have scaled this back somewhat as the heavy saving causing not actually earning any more net dollars for so long it was starting to get to me lol. At some point you really do just need a little bump to feel something IMO.

 

[kranky]

14-15% and it's 100% in the stock market at this time.

Not sure if it's enough

Read http://www.investopedia.com/articles/personal-finance/092414/retirement-what-percentage-salary-save.asp . The key findings are:
1. If you start saving when entering the workforce, you benefit greatly from the many years of being invested.
2. Wade Pfau found saving around 16% of income during a 30-year working career will allow replacing about 50% of income in retirement without counting Social Security. In other words, that would be considered a very comfortable retirement.

People focus too much on short-term returns instead of looking at a likely average yearly 5% growth in their investments over many decades. I have co-workers who jumped out of the market in 2008 and are still on the sidelines, while those who hung in there are 50% ahead or more.

With pensions becoming more and more rare, it's important to start saving early and steadily. Even with a pension, they are often not adjusted for inflation. My father had 28 years at a big company, was RIF'd at age 62 with a pension he started taking right away. It's 25 years later, and that pension is still what it was at the start, but inflation (which has been low!) has cut the value in half.

 

[purbeast0]

i put 8% of my salary and my company matches 7%, then i max out my roth IRA every year. i'm hoping to have millions by the time i retire.