We are in our early 40's and have young children. We are a one income family.
-$0 Savings of any kind prior to 2001
-Company began 4% contribution to 401K in 2001 and continues to do so;
We began contributing 6% pre-tax in 2004 (the max company will match);
5-year return has averaged over 10%;
I would like the fund balance to triple by 2013
-Began saving in Jan 2007 for two maxed 2007 IRA Roth accounts; will continue contribution each year.
-Total of about 11% after tax dollars are contributed to long term savings (including Roth).
-Small monthly pension from old job begins fall 2026.
-Full retirement age (SS) is late 2028 & 2032 (about 21-25 more years).
-No new debt since Jan 2004
-Completed paying off credit card debt & car loan in August 2006
-Home Equity Loan = 15% of net income (pymt + extra principal pymt)
-Mortgage = about 17% net income; last pymt is 2/1/2019
-No other debt
January 2006 - 629
June 2007 - 741
1st child begins in fall 2016 and last child completes in spring 2026.
No current plans for college savings as I don't see how to manage it.
We began with contributions of 4% of net income per month.
Currently have 4 months of living expenses in various CD's and don't plan to save more.
Job security is extremely high; we have good life & disability insurance.