Comments on: Is saving 15% for retirement enough? http://sensetosave.com/2009/02/26/is-15-percent-enough/ Wed, 23 May 2012 18:19:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Community In Action - Big Snow Edition | The Happy Rockhttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36787 Community In Action - Big Snow Edition | The Happy Rock Sat, 07 Mar 2009 02:30:10 +0000 http://sensetosave.com/?p=1117#comment-36787 [...] Is Saving 15% For Retirement Enough? @ Sense To Save [...] [...] Is Saving 15% For Retirement Enough? @ Sense To Save [...]

]]> By: Kaciehttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36470 Kacie Mon, 02 Mar 2009 13:45:29 +0000 http://sensetosave.com/?p=1117#comment-36470 It's so hard to predict where we'll be 5 years from now, let alone 40 years and beyond. At this point, my husband would probably like to retire in a traditional sense, but who knows?We want to be in the position where we won't have to worry about money. Continuing to work for the fun of it, or changing industries at that time, might be how it ends up. It’s so hard to predict where we’ll be 5 years from now, let alone 40 years and beyond. At this point, my husband would probably like to retire in a traditional sense, but who knows?

We want to be in the position where we won’t have to worry about money. Continuing to work for the fun of it, or changing industries at that time, might be how it ends up.

]]> By: The Happy Rockhttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36441 The Happy Rock Mon, 02 Mar 2009 08:56:47 +0000 http://sensetosave.com/?p=1117#comment-36441 15% is quite fine from my calculation too, especially if you are younger.We had to focus on clearing our 70k in debt and buying a house before we seriously start putting too much in retirement. I have put 8% away faithfully with a 50% company match since I graduated college that has given us a great start.The other question is, do you plan on retiring? At least I hope I am not forced too. I know I will be doing 'work' that I love and 60 seems like a silly time to stop, you are just getting seasoned.<em>The Happy Rock's last blog post..</em><a href='http://feedproxy.google.com/~r/TheHappyRock/~3/AJV8UmluDkI/' rel="nofollow">$500 Credit Card Cashback In A Year</a> 15% is quite fine from my calculation too, especially if you are younger.

We had to focus on clearing our 70k in debt and buying a house before we seriously start putting too much in retirement. I have put 8% away faithfully with a 50% company match since I graduated college that has given us a great start.

The other question is, do you plan on retiring? At least I hope I am not forced too. I know I will be doing ‘work’ that I love and 60 seems like a silly time to stop, you are just getting seasoned.

The Happy Rock’s last blog post..$500 Credit Card Cashback In A Year

]]> By: Jorgehttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36403 Jorge Sun, 01 Mar 2009 22:38:22 +0000 http://sensetosave.com/?p=1117#comment-36403 15% is a great goal for savings, especially if you are starting early. If you're a little later though, you may need to ratchet it up to 20% or so.I ran a few scenarios assuming a 7% return on investment and that you can live off 4% of your savings. Check out the graph at:http://independentminded.org/2009/02/28/are-you-saving-enough-to-achieve-your-financial-goals/What it tells you is this...you better be saving North of 15% if you want to be Financially Independent early!Happy savings and good luck!<em>Jorge's last blog post..</em><a href='http://independentminded.org' rel="nofollow">Independent Minded</a> 15% is a great goal for savings, especially if you are starting early. If you’re a little later though, you may need to ratchet it up to 20% or so.

I ran a few scenarios assuming a 7% return on investment and that you can live off 4% of your savings. Check out the graph at:

http://independentminded.org/2009/02/28/are-you-saving-enough-to-achieve-your-financial-goals/

What it tells you is this…you better be saving North of 15% if you want to be Financially Independent early!

Happy savings and good luck!

Jorge’s last blog post..Independent Minded

]]> By: Sunday Link Love | The Ultimate Money Bloghttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36374 Sunday Link Love | The Ultimate Money Blog Sun, 01 Mar 2009 14:18:39 +0000 http://sensetosave.com/?p=1117#comment-36374 [...] at Sense to Save asks if 15% is enough to save for retirement. I think it’s awesome she’s making sure she’s prepared at [...] [...] at Sense to Save asks if 15% is enough to save for retirement. I think it’s awesome she’s making sure she’s prepared at [...]

]]> By: Scott @ The Passive Dadhttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36338 Scott @ The Passive Dad Sat, 28 Feb 2009 22:43:06 +0000 http://sensetosave.com/?p=1117#comment-36338 It's interesting how spouses can have different assumptions about retirement. I would love to retire early, while my wife has a dream of becoming a college professor after she retires from her career. I say, go for it but I still want to retire early :)<em>Scott @ The Passive Dad's last blog post..</em><a href='http://feeds.feedburner.com/~r/thepassivedad/BEqd/~3/532509129/' rel="nofollow">How We Shed $200 From Our Grocery Budget. Next Month FoodMaxx For More Savings</a> It’s interesting how spouses can have different assumptions about retirement. I would love to retire early, while my wife has a dream of becoming a college professor after she retires from her career. I say, go for it but I still want to retire early :)

Scott @ The Passive Dad’s last blog post..How We Shed $200 From Our Grocery Budget. Next Month FoodMaxx For More Savings

]]> By: Sandyhttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36332 Sandy Sat, 28 Feb 2009 20:23:35 +0000 http://sensetosave.com/?p=1117#comment-36332 Also, try 4 percent...sometimes that's all you really get.<em>Sandy's last blog post..</em><a href='http://sandyben.blogspot.com/feeds/posts/default' rel="nofollow">Photo Hunt-Thankful</a> Also, try 4 percent…sometimes that’s all you really get.

Sandy’s last blog post..Photo Hunt-Thankful

]]> By: Curious Cat Investing Bloghttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36324 Curious Cat Investing Blog Sat, 28 Feb 2009 18:16:45 +0000 http://sensetosave.com/?p=1117#comment-36324 It is also wise to re-evaluate the projections at least every couple years (and every year as you get within say 10 years of planned retirement). Another thing to consider is a partial retirement where you work part time at the beginning of retirement, I think that is going to become increasingly common.A few years ago 10% looked like a decent goal for retirement saving (not without risk, but at least a decent start for say your 20's and 30's). The real estate and stock market recently have made the assumptions behind 10% seem optimistic.<em>Curious Cat Investing Blog's last blog post..</em><a href='http://investing.curiouscatblog.net/2009/02/27/low-mortgage-rates-but-high-eligibility-requirements/' rel="nofollow">Low Mortgage Rates But High Eligibility Requirements</a> It is also wise to re-evaluate the projections at least every couple years (and every year as you get within say 10 years of planned retirement). Another thing to consider is a partial retirement where you work part time at the beginning of retirement, I think that is going to become increasingly common.

A few years ago 10% looked like a decent goal for retirement saving (not without risk, but at least a decent start for say your 20′s and 30′s). The real estate and stock market recently have made the assumptions behind 10% seem optimistic.

Curious Cat Investing Blog’s last blog post..Low Mortgage Rates But High Eligibility Requirements

]]> By: Jennahttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36315 Jenna Sat, 28 Feb 2009 14:44:16 +0000 http://sensetosave.com/?p=1117#comment-36315 I started saving for retirement when I was 11 years old. I married at 20 and we saved half for years. He got it all now I am starting over at zero at age 50. Warning to all stay at home wifes and Mom's. Save in your name only. I started saving for retirement when I was 11 years old. I married at 20 and we saved half for years. He got it all now I am starting over at zero at age 50. Warning to all stay at home wifes and Mom’s. Save in your name only.

]]> By: Finance Junkiehttp://sensetosave.com/2009/02/26/is-15-percent-enough/comment-page-1/#comment-36213 Finance Junkie Fri, 27 Feb 2009 02:20:08 +0000 http://sensetosave.com/?p=1117#comment-36213 You make a good point in using two different rates of return (8 and 6 percent) in your calculations.I would also recommend factoring in historical inflation rates into your calculations by subtracting an assumed rate from 8 and 6 percent, respectively. I typically assume 3% annual inflation... Doing this would modify your assumed rates of return to 5 and 3 percent.The other big determining factor for percent to save is annual salary. People with small annual salaries will have to save a larger percentage. You make a good point in using two different rates of return (8 and 6 percent) in your calculations.

I would also recommend factoring in historical inflation rates into your calculations by subtracting an assumed rate from 8 and 6 percent, respectively. I typically assume 3% annual inflation… Doing this would modify your assumed rates of return to 5 and 3 percent.

The other big determining factor for percent to save is annual salary. People with small annual salaries will have to save a larger percentage.

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