How much should i contribute to my 401k?

Question

Im 37 now, my compny matches 3%, i contribute 6% weekly

i plan to retire at 65, i hope i would have around $3 to 4,000 mthly after until I reach 80 yrs.

how much do i have to contribute?

Answer 1

I don't know that you have to contribute any thing, but I suggest you contribute as much as you can comfortably do. You will be glad when you get to retirement and find that you can't live on social security alone. Good luck.

Answer 2

Check out "the latte factor calculator" on David Bach's website, www.finishrich.com. It's under resources at the very bottom on the page once you access the home page. Play with the figures but estimate lower rates of returns instead of higher. You don't know what interest rates will be like in 28 years from now but trust me, those 28 years will be here in no time. Trust me... I'm turning 50 so I have less time than you do.

Answer 3

Ok, out of all the calculators...this ones the best! and the easiest.

It asks you 5 questions and then shows you a chart. It tells you how much you need to retire comfortably and what your on track to get.

Answer 4

It depends how much you make now, when you started contributing, and if you have other savings/retirement.  If you are making a little, contribute more.

I'd suggest contribute 10% if you can afford it.  Otherwise, minimum 6% like you are now.

If you just started contributing, you should put 15% or more.  If you have been contributing for the past 10 years, 6% at the minimum.

Also, put some in a ROTH IRA too.

Answer 5

It depends on how much you already have saved for retirement plus how much you already make. (3% of what? $35k? $95k?)

Check out the calculators and info here:

http://feedthepig.org/

Generally, if you're approaching 40, you need to be saving more aggressively. I'd be saving 10% - 12%, personally. I'm working part-time right now (staying home with my baby) but when I go back fulltime at 41 or 42yo, I'm going to have some catching up to do so I'll be socking away 20%.