What percentage of your paycheck do you invest?

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Topic Author
simplesauce
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What percentage of your paycheck do you invest?

Post by simplesauce » Sun Apr 05, 2020 5:46 pm

My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?

Trader Joe
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Re: What percentage of your paycheck do you invest?

Post by Trader Joe » Sun Apr 05, 2020 5:48 pm

simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
More than 50%. Sometimes much, much more.

tyrnup13
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Re: What percentage of your paycheck do you invest?

Post by tyrnup13 » Sun Apr 05, 2020 5:50 pm

60-70% of post tax.

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White Coat Investor
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Re: What percentage of your paycheck do you invest?

Post by White Coat Investor » Sun Apr 05, 2020 5:53 pm

Don't get paychecks, but about 1/3 of income goes to taxes, 10-15% is given away and perhaps 2-5% is spent. So I guess the rest is invested most of the time. But we are just finishing a big home renovation so I guess we spent a lot more the last 6 months than "normal." So 50%. But that number has ranged from 6% to 70% over the years.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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watchnerd
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Re: What percentage of your paycheck do you invest?

Post by watchnerd » Sun Apr 05, 2020 5:53 pm

60% post-tax.

And, of course, maxing 401k pre-tax.

Then there are bonuses, RSUs, which are outside paychecks.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

runner3081
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Re: What percentage of your paycheck do you invest?

Post by runner3081 » Sun Apr 05, 2020 5:54 pm

65%+ of gross pay.

That includes Roth x2, 403b, HSA, post-tax, 529 and 457b.

TheNightsToCome
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Re: What percentage of your paycheck do you invest?

Post by TheNightsToCome » Sun Apr 05, 2020 6:07 pm

62.35% of gross last year.

ValuationsMatter
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Re: What percentage of your paycheck do you invest?

Post by ValuationsMatter » Sun Apr 05, 2020 6:10 pm

41% post-tax income.

Triple digit golfer
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Re: What percentage of your paycheck do you invest?

Post by Triple digit golfer » Sun Apr 05, 2020 6:11 pm

We invest around 30% of gross salary.

fatcoffeedrinker
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Re: What percentage of your paycheck do you invest?

Post by fatcoffeedrinker » Sun Apr 05, 2020 6:18 pm

37% to taxes
2% to health insurance
8% to expenses
53% to savings

Rosencrantz1
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Re: What percentage of your paycheck do you invest?

Post by Rosencrantz1 » Sun Apr 05, 2020 6:34 pm

Monthly cola pensions. 30-40% of after tax income goes into investments/savings of some kind. This'll probably be the case until we can do some traveling again. We have no debt.

lowndes
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Re: What percentage of your paycheck do you invest?

Post by lowndes » Sun Apr 05, 2020 6:36 pm

simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.

Balance1969
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Re: What percentage of your paycheck do you invest?

Post by Balance1969 » Sun Apr 05, 2020 6:41 pm

About 33% pre-tax, which is about 50% post-tax.

Caveats:

I don't receive regular paychecks, so that is based on an average of fluctuating income.

The 50% post-tax investments include 401k, index funds, mutual funds, individual stocks, mortgage principal payments. I had put more into the mortgage when the market was way up and the mortgage was newer. Right now, I'm shifting some of that towards index funds.

dbadalam
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Re: What percentage of your paycheck do you invest?

Post by dbadalam » Sun Apr 05, 2020 6:43 pm

lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.

PhoebeCoco
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Re: What percentage of your paycheck do you invest?

Post by PhoebeCoco » Sun Apr 05, 2020 6:45 pm

I was lucky to work at a public institution that offered both 403b and 457b tax-advantaged investment accounts. I maxed these out every year for 18 years, and when I turned 50, I maxed out the catch-up portion for both also. This ranged from 27% to 37% of my salary.

Happily retired now.
If you're not working on yourself, you're not working.

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AspireToRetire
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Re: What percentage of your paycheck do you invest?

Post by AspireToRetire » Sun Apr 05, 2020 6:45 pm

50% after tax

Jacobi
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Re: What percentage of your paycheck do you invest?

Post by Jacobi » Sun Apr 05, 2020 6:45 pm

dbadalam wrote:
Sun Apr 05, 2020 6:43 pm
lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.
Yeah, this is a rather elite and high-earning group we're talking to on this forum.

somekevinguy
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Re: What percentage of your paycheck do you invest?

Post by somekevinguy » Sun Apr 05, 2020 6:49 pm

~35% gross

Blender
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Re: What percentage of your paycheck do you invest?

Post by Blender » Sun Apr 05, 2020 6:51 pm

50% of our gross pay is on autopilot, then as we can. Last year ended up saving 59% of gross.

mbasherp
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Re: What percentage of your paycheck do you invest?

Post by mbasherp » Sun Apr 05, 2020 6:51 pm

We work very (VERY, lately) hard to save 1/3 of gross among the different accounts available to us. I feel that is a good balance of living now and preparing for the future.

Threads like this remind me that we are not typical folks in this extremely high income community even though we are technically upper middle class. I can barely fathom what incomes are like for those who live on <10%!

As they say, comparison is the thief to joy.

igetthebag
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Re: What percentage of your paycheck do you invest?

Post by igetthebag » Sun Apr 05, 2020 6:57 pm

30-35% of gross. 115-130k is our usual household income. No kids.

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Random Musings
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Re: What percentage of your paycheck do you invest?

Post by Random Musings » Sun Apr 05, 2020 7:16 pm

Jacobi wrote:
Sun Apr 05, 2020 6:45 pm
dbadalam wrote:
Sun Apr 05, 2020 6:43 pm
lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.
Yeah, this is a rather elite and high-earning group we're talking to on this forum.
See Saez and Zucman, the Distribution of U.S. Wealth Capital.

The top 1%, over time, usually save between 20-40% of their income (except during the depression period.) Most of the growth of that wealth is to the top 0.1%, the other 90% of them are just treading water. The top 1-10% used to save more, 20=30% until the late 70's (again, except during the depression period), but that has been slowly eroding since then. The bottom 90% don't save to much, but I expect that is tiered and the top 11-50% save somewhat, while the poorest don't.

So, most of the posters above are still strongly above the avg top 1% savings rate.

With two kids, one wage earner and modest income, average saving about 25% of gross over past five years. Saved far more when I was single as well as before having kids. Right now during the current bear, assuming I receive 70% of current projected SS payments, I need a 2% SWR to match my current after-tax income. This assume 3/4 funding of college expenses (same as what my parents did, make sure you have a little skin in the game). Haven't had any debt in a long time.

RM
Last edited by Random Musings on Tue Apr 14, 2020 8:41 pm, edited 3 times in total.
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mortfree
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Re: What percentage of your paycheck do you invest?

Post by mortfree » Sun Apr 05, 2020 7:19 pm

110% of each paycheck

/troll(me)
Last edited by mortfree on Sun Apr 05, 2020 7:24 pm, edited 1 time in total.

Superleaf444
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Re: What percentage of your paycheck do you invest?

Post by Superleaf444 » Sun Apr 05, 2020 7:20 pm

15% goes into my 401k. Then 54% of what is left after deductions, such as FSA, insurance, etc., goes into my savings*

*brokerage, roth, emergency fund, house fund, etc.

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Stewie
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Re: What percentage of your paycheck do you invest?

Post by Stewie » Sun Apr 05, 2020 7:20 pm

50% of gross

Gooch1226
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Re: What percentage of your paycheck do you invest?

Post by Gooch1226 » Sun Apr 05, 2020 7:23 pm

22 % of gross . 10% goes to my pension automatically. And 12% goes to deferred compensation. When my contract eventually settles I will do to 15% deferred compensation.

justsomeguy2018
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Re: What percentage of your paycheck do you invest?

Post by justsomeguy2018 » Sun Apr 05, 2020 7:25 pm

Currently around ~24% of gross, counting 401k, Roths, HSAs, ESPP, and occasional taxable account.

Blender
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Re: What percentage of your paycheck do you invest?

Post by Blender » Sun Apr 05, 2020 7:26 pm

mortfree wrote:
Sun Apr 05, 2020 7:19 pm
110% of each paycheck
Nice 401K match!

bgf
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Re: What percentage of your paycheck do you invest?

Post by bgf » Sun Apr 05, 2020 7:29 pm

just went over our 2019 tax return. 15% went to income taxes and FICA (22% fed and 5.25% state), 37% was invested, and i suppose that leaves the rest being spent.
Last edited by bgf on Sun Apr 05, 2020 7:31 pm, edited 1 time in total.
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t00sl0w
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Location: Florida

Re: What percentage of your paycheck do you invest?

Post by t00sl0w » Sun Apr 05, 2020 7:30 pm

I do 18% of my check, I'm not sure what my wife is up to with hers.
I also have another 3% that comes out for my pension as FRS requires that now, but I dont count that as part of my %.

Topic Author
simplesauce
Posts: 318
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Re: What percentage of your paycheck do you invest?

Post by simplesauce » Sun Apr 05, 2020 7:35 pm

Jacobi wrote:
Sun Apr 05, 2020 6:45 pm
dbadalam wrote:
Sun Apr 05, 2020 6:43 pm
lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.
Yeah, this is a rather elite and high-earning group we're talking to on this forum.
I am completely floored by the responses! Wow.

Is it because the above Bogleheads make a very large income? (and what might that be? $150k? $300k? $600k?)

Or is it because they already have filled their savings accounts and emergency funds to comfortable levels, and therefore can lock away much of their income into the market for the future?

We can’t imagine investing so much of each paycheck at the moment. We have bills, expenses, mortgage, etc. Maybe once our savings gives us a year or two (?) of security. I really can’t believe the responses.

Blender
Posts: 199
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Re: What percentage of your paycheck do you invest?

Post by Blender » Sun Apr 05, 2020 7:39 pm

simplesauce wrote:
Sun Apr 05, 2020 7:35 pm
I am completely floored by the responses! Wow.

Is it because the above Bogleheads make a very large income? (and what might that be? $150k? $300k? $600k?)
- no debt
- frugal lifestyle
- saver's by nature (lucky that we feel better saving than spending)
- smart financial planning
- decent income (between your 1st and 2nd #s)

stoptothink
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Re: What percentage of your paycheck do you invest?

Post by stoptothink » Sun Apr 05, 2020 7:43 pm

simplesauce wrote:
Sun Apr 05, 2020 7:35 pm
Jacobi wrote:
Sun Apr 05, 2020 6:45 pm
dbadalam wrote:
Sun Apr 05, 2020 6:43 pm
lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.
Yeah, this is a rather elite and high-earning group we're talking to on this forum.
I am completely floored by the responses! Wow.

Is it because the above Bogleheads make a very large income? (and what might that be? $150k? $300k? $600k?)

Or is it because they already have filled their savings accounts and emergency funds to comfortable levels, and therefore can lock away much of their income into the market for the future?

We can’t imagine investing so much of each paycheck at the moment. We have bills, expenses, mortgage, etc. Maybe once our savings gives us a year or two (?) of security. I really can’t believe the responses.
All of the above.

We're at ~55% gross if you include extra mortgage principle on ~$220k HHI. Ours is primarily a very simple lifestyle; that savings rate will get quite a bit higher by the end of the year when our mortgage is paid off, wife is done with school, and no more daycare for our son (well, seems that ended this month without any planning). When we married 6.5yrs ago, we were probably ~40% gross on <$100k HHI.

Candor
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Re: What percentage of your paycheck do you invest?

Post by Candor » Sun Apr 05, 2020 7:44 pm

50-60% of gross into savings.40% of that into equities and 60% into cd's. No mortgage so that helps.

luckyducky99
Posts: 42
Joined: Sun Dec 15, 2019 7:47 pm

Re: What percentage of your paycheck do you invest?

Post by luckyducky99 » Sun Apr 05, 2020 7:47 pm

Every other paycheck, so 50% after tax. Plus 100% after tax of any bonus, which comes once a year.

somekevinguy
Posts: 155
Joined: Mon Jan 16, 2017 9:23 pm

Re: What percentage of your paycheck do you invest?

Post by somekevinguy » Sun Apr 05, 2020 7:47 pm

simplesauce wrote:
Sun Apr 05, 2020 7:35 pm
Jacobi wrote:
Sun Apr 05, 2020 6:45 pm
dbadalam wrote:
Sun Apr 05, 2020 6:43 pm
lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.
Yeah, this is a rather elite and high-earning group we're talking to on this forum.
I am completely floored by the responses! Wow.

Is it because the above Bogleheads make a very large income? (and what might that be? $150k? $300k? $600k?)

Or is it because they already have filled their savings accounts and emergency funds to comfortable levels, and therefore can lock away much of their income into the market for the future?

We can’t imagine investing so much of each paycheck at the moment. We have bills, expenses, mortgage, etc. Maybe once our savings gives us a year or two (?) of security. I really can’t believe the responses.
probably a combination of the above plus you're getting a skewed sample with sig. self selection bias- those responding (I'd guess) most likely to skew on the higher end of % savings.

HawkeyePierce
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Location: Colorado

Re: What percentage of your paycheck do you invest?

Post by HawkeyePierce » Sun Apr 05, 2020 7:51 pm

34%

I max out my pre-tax 401k, post-tax 401k (capped at 10% of salary by my employer), HSA and ESPP (also capped at 10%).

Lou354
Posts: 668
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Re: What percentage of your paycheck do you invest?

Post by Lou354 » Sun Apr 05, 2020 7:55 pm

About 25%, now that mortgage is paid off.

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watchnerd
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Re: What percentage of your paycheck do you invest?

Post by watchnerd » Sun Apr 05, 2020 7:57 pm

Blender wrote:
Sun Apr 05, 2020 7:39 pm
simplesauce wrote:
Sun Apr 05, 2020 7:35 pm
I am completely floored by the responses! Wow.

Is it because the above Bogleheads make a very large income? (and what might that be? $150k? $300k? $600k?)
- no debt
- frugal lifestyle
- saver's by nature (lucky that we feel better saving than spending)
- smart financial planning
- decent income (between your 1st and 2nd #s)
All of the above*, plus:

-losing less to taxes by getting more of our earnings in tax-preferential ways (long term tax gains, dividends), as opposed to wage income and 1099-INT
-owing taxes, and thus getting free/low cost loan from the government for a year, instead of loaning the government money
-ESPP (automatic 10% minimum ROI)
-No state income tax (WA)


(*our income is also higher than implied above)
Last edited by watchnerd on Sun Apr 05, 2020 7:58 pm, edited 1 time in total.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

Triple digit golfer
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Re: What percentage of your paycheck do you invest?

Post by Triple digit golfer » Sun Apr 05, 2020 7:58 pm

Keep in mind, OP, that people with lower savings rates are less likely to respond.

15% is very respectable. Well above average.

Normchad
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Re: What percentage of your paycheck do you invest?

Post by Normchad » Sun Apr 05, 2020 8:07 pm

I'm also impressed by these responses. I feel like I save a boat load..... Last year I probably saved 40% of Gross.

For me, the keys are:
1) Get paid well
2) Be at the point in life where the house is paid off, the kids are launched, etc.

I was probably 32 before I could even max out mh 401K account, and I think the limit back then was around 11K. But as your family starts and matures, it gets really expensive, and then suddenly it gets cheaper again when the kids are gone. That's where I'm at now.

I will add my daughter is getting ready to start her career, and I advise her to *strive* to save 15% of gross income each year. I say *strive* because it's a goal, she might not be able to do it for a while.

JasonA1987
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Re: What percentage of your paycheck do you invest?

Post by JasonA1987 » Sun Apr 05, 2020 8:20 pm

~21% of pretax income.

Household income of $90,000, with two kids <5y/o.

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Nicolas
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Re: What percentage of your paycheck do you invest?

Post by Nicolas » Sun Apr 05, 2020 8:26 pm

Retired now but early in my career all I could afford was 7% and I wouldn’t have saved that but for employer matching which I could not refuse, so I’m thankful for that. By the end of my career, 50%.
When you haven't got the coin you're always in the way — Geo. M. Cohan

lowndes
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Re: What percentage of your paycheck do you invest?

Post by lowndes » Sun Apr 05, 2020 8:29 pm

dbadalam wrote:
Sun Apr 05, 2020 6:43 pm
lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.
Honestly I expected these exact type of responses which is the only reason I responded to the OP. With the percentage I save and what I contribute from my bonus I’m well on track to the financial goals I have set for myself.

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birdog
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Re: What percentage of your paycheck do you invest?

Post by birdog » Sun Apr 05, 2020 8:36 pm

This is a bit of an eye opener for many. While early retirement is not for everyone, achieving financial independence can be life changing on many levels and afford you the ability to drastically change your life based on your values.

https://www.mrmoneymustache.com/2012/01 ... etirement/


Image

emoore
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Joined: Mon Mar 04, 2013 8:16 pm

Re: What percentage of your paycheck do you invest?

Post by emoore » Sun Apr 05, 2020 8:37 pm

lowndes wrote:
Sun Apr 05, 2020 8:29 pm
dbadalam wrote:
Sun Apr 05, 2020 6:43 pm
lowndes wrote:
Sun Apr 05, 2020 6:36 pm
simplesauce wrote:
Sun Apr 05, 2020 5:46 pm
My family puts 10% of each paycheck into our investment accounts. We are looking to increase this to 15% moving forward. How about all of you?
Same as you: 10-15% of base pay. I’m all over the map with what I do with my annual bonus.
I’ll bet you guy were not expecting the kind of answers your getting in this thread.
Honestly I expected these exact type of responses which is the only reason I responded to the OP. With the percentage I save and what I contribute from my bonus I’m well on track to the financial goals I have set for myself.
+1. I'm at about 20%. 50% and much much more? Seriously?

crinkles2
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Joined: Fri Nov 28, 2014 8:18 pm

Re: What percentage of your paycheck do you invest?

Post by crinkles2 » Sun Apr 05, 2020 8:44 pm

About 8.7% gross, due to various reasons, some being:
1. single income family.
2. 3x preteens.
3. In the middle of an expensive move.
4. Hoarding cash due to Covid 19 (and I use the term hoarding lightly because there's not much to hoard).

Hoping that in six months, we can change that to 15% gross.

dbadalam
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Joined: Wed Jul 08, 2015 8:04 am

Re: What percentage of your paycheck do you invest?

Post by dbadalam » Sun Apr 05, 2020 8:46 pm

Paycheck? Who needs paychecks in this forum... getting paid is for the poor! :sharebeer

Ron Ronnerson
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Location: Bay Area

Re: What percentage of your paycheck do you invest?

Post by Ron Ronnerson » Sun Apr 05, 2020 8:48 pm

44% pre-tax or 45% post-tax (combined federal and California state income taxes come to about 1% of gross pay).

dbadalam
Posts: 69
Joined: Wed Jul 08, 2015 8:04 am

Re: What percentage of your paycheck do you invest?

Post by dbadalam » Sun Apr 05, 2020 8:55 pm

birdog wrote:
Sun Apr 05, 2020 8:36 pm
This is a bit of an eye opener for many. While early retirement is not for everyone, achieving financial independence can be life changing on many levels and afford you the ability to drastically change your life based on your values.

https://www.mrmoneymustache.com/2012/01 ... etirement/


Image
The “for many” you speak of are highly compensated professionals (of which I am also). For most people, bare bones basic necessities eat up their entire income. Saving money isn’t a possibility let alone saving more than half their income.

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