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Only 5 more years according to The Plan but it really depends on the market. I am already 60% of the way to the 2022 savings goal thanks to current market conditions.

I had a plan to make it by 40, but I’ve already covered the circumstances in another thread, so no point in crying over spilt milk. Including employer matches/contributions with what I’m setting aside for 401k, HSA, and post-tax, I am almost saving 50% of annual gross. Besides not having kids, the biggest factor was buying half the house I could afford 18 years ago and paying it off. Moving the amount of the monthly mortgage payment from the cost of living side of the balance sheet to the savings side of the balance sheet made all the difference.
 

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Pretty good article. One thing that cost me lots was an addiction to new cars. My kids have that problem too, but they make it even worse by leasing. And night life, in the bars, riding the uber - expensive but they like it.

Many people, for whatever reason, carry a credit card balance and pay the 20+% interest. That's just burning money.
 

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Got a bit of a late start with retirement savings but on track to join the 2 comma club before year end - month end if the market behaves. The market isn't helping today. Already comfortably in the club as a household (home equity not included). Contrary to the belief of some here (you know who you are), none of mine was inherited. 25(ish)% saving in a simple 3 fund portfolio of low cost index mutual funds and a healthy emergency fund in high yield savings account, CDs, and I-series savings bonds (mostly new money since current rate is something like 3.54%). Still a good way from retirement but on the downward slope and the clock is ticking.
 

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Pretty good article. One thing that cost me lots was an addiction to new cars. My kids have that problem too, but they make it even worse by leasing. And night life, in the bars, riding the uber - expensive but they like it.
2 years ago I met a person that had a car totaled out from under them. Before buying a new one, they ran the math on ride sharing vs miles on an owned or leased car. They gave up on owning a vehicle after that and just budgeted $300/mo for ride shares. Actual spending came out closer to $200/mo. For me, $300/mo is $36k of gas, insurance, maintenance, and cost of vehicle on a 10 year scale.
 

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Got a bit of a late start with retirement savings but on track to join the 2 comma club before year end - month end if the market behaves. The market isn't helping today. Already comfortably in the club as a household (home equity not included). Contrary to the belief of some here (you know who you are), none of mine was inherited. 25(ish)% saving in a simple 3 fund portfolio of low cost index mutual funds and a healthy emergency fund in high yield savings account, CDs, and I-series savings bonds (mostly new money since current rate is something like 3.54%). Still a good way from retirement but on the downward slope and the clock is ticking.
Congrats, that’s got to be taking work stress off as a bonus too.
 

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Discussion Starter · #8 ·
25(ish)% saving in a simple 3 fund portfolio of low cost index mutual funds and a healthy emergency fund in high yield savings account, CDs, and I-series savings bonds (mostly new money since current rate is something like 3.54%). Still a good way from retirement but on the downward slope and the clock is ticking.
Another high savings rate!

3 fund portfolio - do you spend a lot of time at Bogleheads?
 

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Yukon Cornelius
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I’m currently saving 26% of my base pay in a Roth 401k. Maxing a HSA and putting left over funds in a taxable brokerage account. I really need to work on maxing my Roth IRA though.
 

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Another high savings rate!

3 fund portfolio - do you spend a lot of time at Bogleheads?
Don't spend a lot of time there but check in regularly. A lot of the same questions asked repeatedly. What should my asset allocation be? Should I dollar cost average or lump sum? Is this market timing? Etc.
 

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I’m currently saving 26% of my base pay in a Roth 401k. Maxing a HSA and putting left over funds in a taxable brokerage account. I really need to work on maxing my Roth IRA though.
That sounds like a really high savings rate if you were to add it all together and divide it by your gross income.
 

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Discussion Starter · #13 ·
To those of you including employer contributions in factoring savings rate, you have to also add it to your income to figure out the rate.

Say your salary is $100,000. You save $19,500 in the 401(k), which is the maximum if you are under 50. Let's say your employer kicks in another $7000. Assume this is all of your savings.

It is ok to factor in the match, which makes your savings $26,500 instead of $19,500. But then your savings rate is not $26,500/100,000. It is 26,500/107,000.
 

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Yukon Cornelius
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With employer match I’m saving 31% of my base salary. 26% Roth 5% employer match going to traditional side.
 

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About 36.5% in pretax deductions have gone to savings so far this year. That's 401k and HSA savings. That percentage will be lower by year's end because the 26k limit is closing in (I'm 50 now) and I just dialed down the 401k contributions to 20% to get all available matching,,,,,max out too early and match benefit is lost. I can tweak it as I go. My post tax savings isn't anything to write about....a good chuck goes toward paying extra on the mortgage. Dave Ramsey would say stop with the 401k contributions above match minimum and throw the rest towards the mortgage. He might be right but I'm not doing it.
On the boggleheads comment...it seems they are concerned with fund fees above anything else regardless of return rate.
 

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Dave Ramsey would say stop with the 401k contributions above match minimum and throw the rest towards the mortgage. He might be right but I'm not doing it.
I made 2 efforts to pay off the mortgage before maxing the 401k. Hindsight being what it is, I should have pushed for max 401k first. I eventually maxed the 401k then paid off the mortgage in the 3rd effort. My situation: I bought half the house I could afford early in my career, eventually paid it off 17 years later, and my income roughly doubled in that time.
 
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