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retirement planning 401k contribution

kevin24018
Posts: 3,008
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1/25/2016 2:26:10 PM
Posted: 1 year ago
My 401k is offered through my employer with NO matching, it's all me.
The managing company has an online calculator to see if you are on track, if you are contributing enough. They claim I will need 80% of my income at retirement age, and an estimated monthly dollar amount of what that would equal.
Now this monthly amount I will need is way more than what I'm living on now. Their calculations are made from my gross pay, however my actual bring home (what I live on) is a little more than 50% of my gross (yes that is gross)
I currently contribute 20% of my income, now I understand the tax benefits etc, but my budged it pretty tight.
based on their projections, with s.s., a pension and the 401k my monthly "pay" will be almost 5x more than what I'm living on now.
I'm not retiring any time soon. But should I weigh the recommendation of the calculator with what I'm actually living on?
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Wylted
Posts: 22,219
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2/6/2016 6:21:01 AM
Posted: 1 year ago
If the company isn't matching, I'm not sure why you'd ve contributing to a 401k as oplosed to a Roth IRA.
"I will.....not suck your dick," Sui_generis
Wylted
Posts: 22,219
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2/6/2016 6:22:51 AM
Posted: 1 year ago
I guess if you don't need to contribute much to enter a lower tax bracket or if you're in an extremely high tax bracket, it might make sense.
"I will.....not suck your dick," Sui_generis