Life_is_Simple
3-28-12, 10:30am
Do you have mental turmoil and torment, because you can't max out on everything? :doh: How do you choose?
There was one year about 10 years ago where I did max out on my company 401k. I was quite glad I did that because it bumped up my retirement savings nicely, but it cut into my savings, so wasn't sustainable. At other jobs, I contributed to the 401k maybe like 8-10%, and for sure up to the match.
Then a few years ago, I started automatic monthly contribution to a Roth IRA and to a non-retirement mutual fund. Then I later decreased the contribution and "forgot" to get it going again. Maybe time to get that going again. In 10+ years, I will be glad to have more money in those.
I now have a SEP IRA, and before sending taxes in, am trying to decide how much to contribute - I already put in $4000 for 2011.
However, I do want a savings cushion too. I do have at least 6 months living expenses, maybe close to 12.
It would be nice to max out everything, but who has all the money for that?
What is your strategy?
There was one year about 10 years ago where I did max out on my company 401k. I was quite glad I did that because it bumped up my retirement savings nicely, but it cut into my savings, so wasn't sustainable. At other jobs, I contributed to the 401k maybe like 8-10%, and for sure up to the match.
Then a few years ago, I started automatic monthly contribution to a Roth IRA and to a non-retirement mutual fund. Then I later decreased the contribution and "forgot" to get it going again. Maybe time to get that going again. In 10+ years, I will be glad to have more money in those.
I now have a SEP IRA, and before sending taxes in, am trying to decide how much to contribute - I already put in $4000 for 2011.
However, I do want a savings cushion too. I do have at least 6 months living expenses, maybe close to 12.
It would be nice to max out everything, but who has all the money for that?
What is your strategy?