My employer offers a 401k for retirement savings. I contribute 6% of my salary, and they contribute 4% of my salary and give me dollar for dollar matching. I’ve contributed 6% for years, and it’s a number we’ve been comfortable with. However, I got to thinking the other day how Mr. Money’s employer doesn’t offer any type of retirement savings (they haven’t ever) and how we probably need to get cracking on saving for retirement with him. We each have a Roth IRA that are in mutual funds, and my account has around $500 in it while his has maybe $2500 in it. That is all we have saved for retirement minus my 401k, which I know has a decent balance, but not as much as I’d like for both of us, especially with Mr. Money being 34 years old.
This is what I’m thinking: I will take a set amount of his paycheck aside each month and transfer it to an ING account where it can stay until we’ve got enough to contribute to the Roth IRA. The reason I don’t want to contribute each month directly to the IRA is because every time we make a contribution they charge us. So it makes sense to go ahead and save up and just make one quarterly or biyearly contribution.
I’m going to have to figure out a dollar amount that works with our budget and go from there. I guess I’ve always worried we won’t have enough money, but that stands for life in general, so as long as I do SOMETHING about retirement and we continue to save money, I should feel good about it.
I’ll continue to contribute to my 401k at work and may even up the percentage a little bit to try to bump that balance up. I know I’ve talked about it before but never took action. I think part of my problem is that I worry too much about everything in general and compare our finances to other people sometimes and those are both big mistakes. I think if I stop doing that, I’ll be in a lot better shape!
I freak out a lot but I also have to realize that we still are pretty young and really just getting started. With Mr. Money a little older than me, it’s easy to think we should have more money saved at this age, we shouldn’t owe so much on our mortgage, he should have a better retirement account, etc. The truth is we’ve done pretty well. We paid off our consumer debt and student loans over the past few years with hard work and determination. We work hard to live on his income, so we can have me stay at home with our baby when the time comes.
Retirement is a long way away, and we’ll do our best and take it from there. That’s all we can do.
Do you worry about retirement?