I just started saving and I feel like I am saving too little. How much do you save every month and where does your money go? YOE: 5 and 2 year MBA TC: 260k PgM
Retirement Savings Goals What should you aim for, savings-wise? Fidelity has some pretty concrete ideas. By the time you’re 30, the company calculates you should have saved half of your annual salary. If you are earning $50,000 by age 30, you should have $25,000 banked for retirement. By age 40, you should have twice your annual salary. By age 50, four times your salary; by age 60, six times, and by age 67, eight times. If you reach 67 years old and are earning $75,000 per year, you should have $600,000 saved. How do you measure up? Source: https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp
Oh my. Saving half of income in the bay area seems like an impossible idea though... Thanks for sharing this!
No no, not saving 50% of your income per year haha. They are talking about having had 50% saved up in total by 30
Any recommendations on Where to park retirement account? Any specific banks? Gives more benefits?
I am shamefully ignorant about savings and investment so I just do auto-save certain amount every month to stocks, IRA, and regular savings account. I wish I can do better
65%-70% of TC. I live in Japan.
That's crazy! Wow
How's Google Japan?
About 40% to 50%. I'm in a LCOL area with Seattle pay.
Where do you live and how did it happen? Goog said they'll pay market price of the area if I wanna relocate
I'm in the greater Phoenix area. Save about $4k a month, including pre-tax accounts. I moved from Seattle to the Phoenix team with no change in comp. They even paid for relo. TC: 185k
Max 401k and back door Roth IRA in index funds and then save ~2k/mo in taxable savings and live your life. As you get raises then increase the savings.
What is the advantage of backdoor Roth IRA?
Most Bay Area SWE pay is beyond the limit to be eligible for any regular Roth IRA contribution...so have to backdoor. Then theoretically time compounding should easily make that tax back and a lot more in future years so that you have some tax free income to use in the future
Start with you first. How much % do you save?
15% ish
15% net? How much is that?