If you graduated from U of M within the last 10 years - i’d love to know how much of your pre-tax income you save.
For me, 34% effective rate (otherwise known as too much) going to federal/state/social security/medicare. 15% goes to essentials (housing/grocery/utilities), 10% discretionary. The remaining 42% I end up saving. I’d like to think my saving rate is probably above average for my age group, but no matter how I model, I am still looking at at least 45 years old before I can start thinking retirement. Anyone else did this math? it’s so depressing.
Only saving 42% of your income. This is what’s known on some message boards as a VBA.
You are on an excellent start. I would max out any retirement and Roth plans you can because you will be less tempted to tap them, and look at separate supplemental tax sheltered plans too. When my wife and I were first married she saved her entire salary in a 403b + supplemental plans. Non-profits and universities have extraordinary retirement shelters available, that’s why you rarely see starving old academics.
I should have provided more context. i stumbled across the following article the other day (bloomberg has a knack of flashing irrelevant but somewhat interesting articles on your screen). This is what got me thinking
http://www.businessinsider.com/how-a-28-year-old-retiree-saved-70-of-her-income-in-new-york-city-2017-3
Great article in the link.