Dec 3, 2018
It is an age old question that has existed for as long as a 401K
has: How much should I contribute to my 401k? Hosts Bill Bush and
Andy Bush, Financial Advisors with the Horizon Financial Group, cut
to the chase and give us the information we need to plan for a
successful retirement. They give us tools to plan and learn about
our personal 401K.
- 1:00--- The age old question: How much should you put into your
401K account? It is a different answer for each person depending on
their life, budget, and many other variables.
- 3:20--- The assumptions you make today will affect how much
money you will have in retirement.
- 4:00--- Some key factors to look at: your planned retirement
age, bills, replacement income (social security) and current
- 7:24--- A Case Study: If you start saving at 35 yo without any
money set aside for retirement and you have a $100,000 income, you
will need to set aside 20% of your income each year.
- 9:22--- How to check-in along the way: At age 35, you need to
have two times your yearly income set aside in savings.
- 10:45--- Many banks or companies have tools available to help
you calculate how much you should set aside for your family.
3 Key Points:
- The age old question when it comes to 401K and retirement is
¨how much do I need to put in it to be ok in retirement?
- The answer to this question varies depending on your current
income, planned retirement age, and present and future bills.
- In general, many companies offer tools to enable you to
calculate the percentage that fits your life.
- “We direct people to 401k
calculators to help people know what they need to contribute.”
- “How much of your income
are you trying to replace.” –Bill.
- “Social security
represents a greater piece of replacement income for lower
income families.” –Bill.