What is a reasonable amount (percentage) that i should be investing into a 401k at 25?

Question

the company does not match what you investing into the 401k.

Answer 1

It really depends on your plans. Without knowing what you have in mind exactly, 10% of gross income is a good amount to put into your 401k plan. Invest most of your money if not all of it in stocks - US and international stocks.

When you start saving at this age, you get a tremendous headstart. Let me just give you an interesting example. Say you start now at age 25 and invest $2000 into a retirement account until you are 35 years old and then you stop adding money. If somebody else starts putting the same $2000 into a retirement account starting at age 35 and saves until she is 65, you will end up with more money at age 65 provided you both get the same return. Of course,  you would not stop contributing at age 35, but I thought this example highlights very well how important it is to start saving early.

You are on the right track! Keep it up!

Answer 2

You should invest the same amount your company is matching so if the company matches 5% then you put 5%.  The rest put it on a Roth IRA the rest meaning 10% of your gross salary.  The reason is because when you reach retirement age, the money in the 401K will be taxable and the money in the Roth IRA which will be more because you have saved more (hopefully) is tax free, because you have used aftertax money to deposit in there.

Answer 3

You should be contributing the maximum allowable to your 401(k).  You can go to your HR department and have them "run the numbers" to see how much each percentage of contribution will affect your actual take home pay.  You may be pleasantly surprised.  When my husband started his 401(k) contribution at  the max, his weekly take home pay went down less than 35 cents per week.  When I started my 401(k) with the maximum contribution, my take home pay went up 65 cents per month.  The contributions put us in a lower tax bracket.

Answer 4

Vilkri is exactly right on this. I would also like to refer you to a tool that helps you determine if you are on the right track.

Go to this website and scroll down a little to "Retirement Planning Made Easy". This tool really helped me when I was starting out. It's kind of scary but it lets you know if you're on the right track.

Answer 5

You should AT LEAST invest the employer's matching part.

You should be saving AT LEAST 10% gross income (towards 401k and other savings).

You should have at least 3 months income in the bank that you can get ASAP.  At least another 3 months income in some other savings (safer mutual funds).

If you are saving for a house, then save for this.

Answer 6

If you can stand it with your bills and everything, always try at least ten percent...

Answer 7

Does your employer provide some sort of match? If so, then at least that much. If you can afford to increase it a percent each year or go higher in the beginning. It is amazing how little you miss it out of the paycheck, but what a big difference the money makes early on.