401K question where am I at 37 years of age and where can I expect to be?

Question

Trying to figure my 401K situation

I'm currently 37 with $75000 and am contributing 10% 5% my money and 5% employee match

Right now for 2015 my monthly contributions are $593.

I have realized that this is woefully inadequate. So for the next several years I plan on increasing my contributions.

2015 10% 7120 per year
2016 12% 8500 per year
2017 14% 9900 per year
2018 15% 10680 per year
2019 16% 11392 per year
2020 17% 12104 per year
2021 18% 12816 per year
2022 19% 13528 per year
2023 20% 14240 per year
2024 remain at 20%

Of course this does not include inflation and salary raises. I turn 60 in the year 2038. I have my holdings in the riskier stock index Where can I expect to be?

J. C. · Answer

Amonynous is correct. and mafahiim is also correct.

You may continue to put in 5% to get the company match, however you have enough in your account now that you would benefit much more by learning about trading individual stocks, rather that funds - if your 401k administrator allows a self-directed account.

Once you can "make" (increase in value) 10% or more each year, the value of taking more money out of your paycheck is reduced.

mafahiim · Answer

Stop adding more to the 401K. just do in the 401K what qualify you to get your employer match. any extra amount, consider opening a roth ira. with 401K your money will grow tax differed but with roth ira you pay taxes now, and all your earnings will be tax FREE in the future.

Bob · Answer

You need to use a retirement planning calculator. There are tons of them on the web. I personally like www.firecalc.com but Fidelity, Scwab, USAA, etc. all have calculators that you can use or go to a financial advisor and have him/her work up a plan for you

Anonymous · Answer

How much you contribute has FAR less impact on how much you will eventually have than "how you are investing it"...

401K question where am I at 37 years of age and where can I expect to be?

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