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Originally posted by: surf87
It's common that an employer might make a matching contribution to an employee's 401k in the amount of 3%, 4%, or even 6% but I've never heard of an employer matching 25%. The point that I would really like to make though is that it is not enough to only save 3%, 4%, or 6%, even with the employer matching contributions. I'm saving 27% in my 401k (with a 4% company match) and I'm on par to maxing out my 2015, 401k limit allowed by the IRS which is $24,000 (age 49 turning 50 in 2015). In addition to maxing out my Roth 2015 of $6500. For some strange reason though even those amounts do not seem to be adequate enough to me for retirement income. At any rate that 22 year old sounds like a typical "spend beyond their means" average citizen. Most people I know live like that and have massive debts that they can never repay, also $18 trillion comes to mind.
That's awesome surf, doing the right thing. Umm.. talking about the matching, my wife's old job matched 25% and I'm pretty certain her new job is matching 25%, whatever, we max it out.
I didn't know a ROTH max was 6500$. I just recently started converting a portion of an IRA over to a ROTH, if that proves to be a wise move remains to be seen. Anyway, good to know and look into.
Seems RM is the main man in this area.
