How much should someone save for 401k?

Question

what exactly is 401k? i'm assuming its money saved for when you r****d to live off of. how much do people usually save and when should I start saving.

Answer 1

A 401K is something your job should offer. Usually they take a percent of your check and put it in your 401K. You should start when ever you get ajob that offers the 401K. And always have it tell its time to retire. Depending on your age, and time you get one then you should have at least 100 g or something lol

Answer 2

Yes, the 401k is intended for your retirement.

So how much to save depends on whether you'd like to have a comfortable retirement or just barely scrape by.

There are retirement calculators that will help you answer this question in detail.  I like the ones at

http://www.fidelity.com

A short answer, though, is:  Put aside as much as you can possibly afford.

One good scheme is to do this, in steps:

1) if your company matches your contribution to the 401k up to a point, put in at least that much to the 401k.   It's free money -- you'd be silly not to take it.

2) put in the maximum contribution to a Roth IRA

3) if you can afford to put aside more, put in more money to your 401k up to the maximum allowed ($15,500 with an additional $5000 if you're over 50)

4) if you can afford to put aside even more, start a non-tax-deferred account and put money into that.

Answer 3

You can only open up a 401K if your employer offers one. Most match at least part of your contribution. You should put in at least as much to maximize that company match. More if you can afford it. 401K's are the best investment vehicles out there for the little guy. Take advantage of it.