dh has 401 k and we put in 2% which is all that will be matched.. we have 10% of dh income going into money market acct.. he is 26 and I am 30. How much SHOULD we be putting away?

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Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. - Will Rogers

I've heard you should put as much in the 401k as will be matched, then do an IRA, and if you max that out, put the rest in the 401k.

My husband just got a new job, after being unemployed for 2.5 months and I've been trying to decide how to do retirement funds there, we also need money to move the rest of us to where he is. They match 15% but I'm not sure what the limit is. The last employer matched up to $1000 (meaning, they only put up to $1000 in your account, they matched 50% up to that amount, if you put $100 in they'd put $50 in).

How do you figure this? Take the max you can contribute per year, subtract the % they match, then divide it up by paychecks?

This may be helpful: What you need to save - Calculator - CNNMoney

I say put as much away as you can afford to! Yes like Vorphalack said you should only go as far as the match on a 401K and then go for an IRA, you want some pretax and some aftertax contributions (IMO of course).I think that because you are so young you should be a little more aggressive than a money market account, unless that is for your emergency funds?

Do you have a few months worth of savings in ready cash for emergencies?

I believe the max for 401k's is $15,500 a year per person? Not positive though.

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"A true friend is someone who thinks that you are a good egg even though he knows that you are slightly cracked." ~ Bernard Meltzer

If you are saving for the long term, putting money in a money market is not a great idea, IMO. Over the years, you actually tend to lose the real value of the money to inflation. In your twenties/thities you should be saving as much as you can for retirement in a tax-sheltered account. (401K, IRA,etc)

I told my financial advisor that I wanted to open an ira but our money market is earning a better return. we do have a nice chunk for emergencies from an inheritance. I plan on opening an ira when I get back in my name for sure.

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Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. - Will Rogers

Is your financial planner earning a commission on that money market?

Most current money market accounts are not over 6%, IRA's over the long term would be WAY better off and tax wise too? Like i said unless you are planning on using the money.

Keeping some of it there is great, but you have time on your side, take advantage of that!

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"A true friend is someone who thinks that you are a good egg even though he knows that you are slightly cracked." ~ Bernard Meltzer

I think the general rule of thumb is that you should put 10% of your income away for retirement. This is if you start when you are young and continue through the years. It is usually best to first max out your 401K contribution because of the tax advantages and any matching you get from your employer.

OP, I think your financial advisor is steering you wrong and probably getting a commission on your Money Market too. If the money is for retirement, a 401K or IRA is far better than any Money Market account. If the money is something you may want to spend in the near future or have available for emergencies, then the money market is probably a good idea.

Sarah......mom to Jason & Devin

This is from the voice of experience.................

Save as much as you can possibly can and then save some more!!!

DH is 67, has lots of health problems and still has to work.
I am trying to figure out how I could work also.
He works because he can earn much more than I can.
I am an ex-hairdresser and cannot do that any more.

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