How much should I put in 401k

I have no 401k saving currently. I am 32 how much should I put in? My company matches 7%

Asked by Owen

3 Answers

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Answered by Michael Minter, Financial Adviser in Tampa, FL
7% Free Money Match is the minimum, is your answer! Money you have over and beyond to invest, work with a independent financial professional to determine the most effective strategies for your personal situation. | 11.09.15 @ 19:35
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:23
Answered by Robert Henderson, AAMS® CDFA® in Mystic, CT
You absolutely need to put in at least 7% to get the free match. However, with no savings yet at age 32, you realistically need to be putting away more like 10-15%. It's simple math - it generally works out that putting away 10-15% of your income will help you accumulate enough for a stable retirement (compared to your pre-retirement income). Obviously, there are a lot of variables; age you start investing, income trajectory, performance of investment over time, etc.).

If putting away more than 7% would be financially difficult for you right now, consider starting at 7%, and then raising the percentage every time you get a raise. | 11.10.15 @ 15:16
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:23
Put 7% into your 401(k) to max out the free money match. If you can save beyond that, then work with a financial adviser to put together a plan that fits your particular need the best. Without knowing your specific situation, I or anyone else, can not give you proper advise. | 11.10.15 @ 19:30
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:23
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