Age when you started to max out your retirement accounts?

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Stormbringer
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Re: Age when you started to max out your retirement accounts?

Postby Stormbringer » Sun Apr 16, 2017 1:43 pm

Maxed out my IRA at ages 23 and 24 with a whopping $2K per year. Prior to that I spent every nickel and then some. The next few years I was fortunate to have an employer who fully funded my SEP-IRA. Then things were a bit spotty for a while. These days I max out my Solo 401k ($53K) plus my wife's 401k along with a double back-door Roth IRA and HSA yet it never seems like enough. Somewhere along the way I've become a compulsive saver.

finite_difference
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Re: Age when you started to max out your retirement accounts?

Postby finite_difference » Sun Apr 16, 2017 1:57 pm

livesoft wrote:We always maxed out retirement accounts since when we got jobs. But that doesn't mean much because back in the 1980's the contribution limits were so low compared to nowadays.


I thought it was $30k in the 1980s until 1986 when it was reduced to a more modern value of $7k?

The 2017 equivalent is $15,600. So it's pretty much tracked inflation. Ergo maxing it back then is equivalent to maxing it now :)
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icefr
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Re: Age when you started to max out your retirement accounts?

Postby icefr » Sun Apr 16, 2017 5:29 pm

forkhorn wrote:Maxing out Roth since I was 19 and started co-oping (like an internship) in undergrad. Maxed out 401k for a few years in the early 2000s, but not since then. Partly it's because I'm planning to move from a no-income-tax-state to an income-tax-state, and so I think my tax rate will rise. Partly it's due to the money piling up so fast that I just have little need to save more, so only put in enough for the match. I'm afraid I'm someone who is too prone to save, and I have to remind myself it's ok to not save as much as possible.


Why not use the Roth 401(k) then, if you have it available?

Malinois000
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Re: Age when you started to max out your retirement accounts?

Postby Malinois000 » Sun Apr 16, 2017 9:47 pm

Early 40s. I'm 56 today.

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badbreath
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Re: Age when you started to max out your retirement accounts?

Postby badbreath » Sun Apr 16, 2017 9:55 pm

that would be last year at 56
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TX_Man
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Re: Age when you started to max out your retirement accounts?

Postby TX_Man » Mon Apr 17, 2017 7:09 am

I've only maxed out my Roth once. The goal is to keep going with that over maxing out my workplace retirement due to the fund choices

BV3273
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Re: Age when you started to max out your retirement accounts?

Postby BV3273 » Wed Apr 19, 2017 8:27 pm

This most likely will be the first year for me. I'm 30. Roth will get maxed and I'll put the full 18.5k in my work sponsored 401k.

PS I still feel way behind compared to most on this site.

dbltrbl
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Re: Age when you started to max out your retirement accounts?

Postby dbltrbl » Wed Apr 19, 2017 8:28 pm

IRA Age 33
403 b no match never age 55

cutehumor
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Re: Age when you started to max out your retirement accounts?

Postby cutehumor » Wed Apr 19, 2017 9:20 pm

I started maxing out my 401k and roth IRA at age 38, when I realized I didn't want to work another 30 years! I started maxing my wife's 401k and roth ira too! she hates it!

FlipFire
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Re: Age when you started to max out your retirement accounts?

Postby FlipFire » Thu Apr 20, 2017 12:16 pm

I started maxing out IRA at age 19 tax year, maxing out 401k and HSA at 23, and maxing out after-tax 401k to roll over into Roth IRA at 25.

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SkierMom
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Re: Age when you started to max out your retirement accounts?

Postby SkierMom » Thu Apr 20, 2017 12:19 pm

Mid 40's.

Max out a 401 and two Roth accounts: $35,000/year total. Total annual income is about $190,000, so we are saving about 18%.

I don't think we will increase our contributions with hitting 50+.

I think the more important metric is: What percentage of your income are you saving?

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bottlecap
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Re: Age when you started to max out your retirement accounts?

Postby bottlecap » Thu Apr 20, 2017 12:19 pm

I first started doing it when I was first offer one at about 25.

My parents pounded in my head that you start by maxing it out and you'll never miss the money. They were right.

JT

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LadyGeek
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Re: Age when you started to max out your retirement accounts?

Postby LadyGeek » Thu Apr 20, 2017 7:31 pm

I removed a number of posts related to socio-economic status, income, and raising families. The discussion was getting contentious. As a reminder, see: General Etiquette

We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.

...At all times we must conduct ourselves in a respectful manner to other posters. Attacks on individuals, insults, name calling, trolling, baiting or other attempts to sow dissension are not acceptable.

Please stay on-topic.
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hightower
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Re: Age when you started to max out your retirement accounts?

Postby hightower » Thu Apr 20, 2017 7:55 pm

Well, its always better late then never;)
I almost maxed out all my accounts last year for the first time. I also got rid of a ton of student loan debt. This will technically be the first year I truly max out both 401ks and both Roth's. I'm also hoping to put aside a nice chunk of change in a taxable account. I'm 35. I didn't start earning anything until I was 26 (as a medical resident) and didn't start getting an attending salary until 29. I was not a good saver from 26-33. I ignored my student loan debt, bought a big house, a couple new cars. I was a bad kid:)
But, I've straightened out now and I'm trying to catch up.

penumbra
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Re: Age when you started to max out your retirement accounts?

Postby penumbra » Thu Apr 20, 2017 10:13 pm

Well, I started as early as I could, as a young physician, probably in my early thirties. Always contributed the max. My retirement accounts' value now close to 8 figures. Looking back, I should have contributed less, or invested less aggressively. First world problem, I know, but nonetheless an avoidable error. RMD's are just too large.

intothegreatunknown
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Re: Age when you started to max out your retirement accounts?

Postby intothegreatunknown » Thu Apr 20, 2017 11:03 pm

I first maxed out my 401k and IRA at age 25. For my first few years out of college I never got into debt and saved a little, but didn't really have any idea what I was doing. I had this inkling I should learn about finance so over a Thanksgiving weekend I read The Millionaire Next Door and it was incredibly motivating. I didn't take away specific facts or approaches from the book, but it was very influential in my thinking. I sought out an actually informative book and ended up reading The Bogleheads' Guide to Investing. After that I almost immediately started maxing out my 401k and IRA and a while later I also started investing in a taxable account.

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whodidntante
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Re: Age when you started to max out your retirement accounts?

Postby whodidntante » Thu Apr 20, 2017 11:37 pm

JD2775 wrote:
sport wrote:Most people do not earn enough to max out all available retirement accounts. You should consider yourself fortunate.


No argument there, I am fortunate. I just wish I was a little more wise with my money in my 30's. Oh well, live and learn,,,


I agree you should max tax sheltered investments if you are fortunate enough to have the income. But taxable investments are not that bad if you buy equity index ETFs. Once I sold my actively managed, trade happy mutual funds my tax bill went down noticeably. I actually sold them off years ago and held way too much cash for a while before discovering equity index ETFs, but at least cash paid something when I held it.

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whodidntante
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Re: Age when you started to max out your retirement accounts?

Postby whodidntante » Thu Apr 20, 2017 11:48 pm

When I was younger, I believed the advice of a charlatan who runs a radio show in the south called The Dave Ramsey Show. He told me I was going to get 12% returns using a combination of growth, aggressive growth, growth and income, and international funds. So I did that, and estimated future value using my trusty financial calculator, just like Dave does on the air. I remember I casually told my mom that I had "saved for retirement." Yes, past tense. I thought that if I didn't add another penny, my 12% returns would leave me with "enough." The rest was just gravy, or would allow for early retirement. In other words, I was naive.

I was 38 when I got the fire lit under me. I realized I wasn't nearly where I expected to be, even after saving the "gravy." My returns were more like 6.5% rather than the 12% I was expecting. I realized the confident, loud, opinionated charlatan was wrong and that I needed to save more. So I did, and how. Now it looks like I might actually retire someday. This time, really with "enough." I also dumped most of my actively managed mutual funds, and while I'm not exactly a Boglehead, my ER has dropped by about 1% across my portfolio.

This site has been tremendously helpful to help me find my way of getting to "enough." I won't apply the advice of a radio talk show host again, unless I properly vet it myself.

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TinkerPDX
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Re: Age when you started to max out your retirement accounts?

Postby TinkerPDX » Fri Apr 21, 2017 12:03 am

At age 33

h82goslw
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Re: Age when you started to max out your retirement accounts?

Postby h82goslw » Fri Apr 21, 2017 9:32 am

BV3273 wrote:This most likely will be the first year for me. I'm 30. Roth will get maxed and I'll put the full 18.5k in my work sponsored 401k.

PS I still feel way behind compared to most on this site.



I didn't start maxing out everything until 2 years ago....at 46 years old. I'm now confident in my financial future, thanks entirely to this website (investing) and MMM (spending wisely).
At 30, you're well ahead of the vast majority of people in this country.

Candor
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Re: Age when you started to max out your retirement accounts?

Postby Candor » Fri Apr 21, 2017 7:39 pm

I started maxing the 401k 4 years ago at the age of 45 after I paid off the house. It was a great feeling to finally get there and I was planning to bump it up again to the catch-up max this year since I turn 50 but due to job burn-out I actually dropped it to the minimum to get the match so I can increase my regular savings. I'm kind of bummed about no longer maxing my 401k but I need to increase my bridge money to 59.5 so I can retire asap.

TigerNest
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Re: Age when you started to max out your retirement accounts?

Postby TigerNest » Fri Apr 21, 2017 7:53 pm

I was 25. I realized I hadn't started saving for retirement yet, and it was the final goal of a broader 'get your financial act together' period in my life. It was 34% of my gross salary at the time, so I was quite proud.

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nedsaid
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Re: Age when you started to max out your retirement accounts?

Postby nedsaid » Fri Apr 21, 2017 8:04 pm

I have been a good saver but never have been able to max out the annual limits of my retirement accounts.
A fool and his money are good for business.

sjl333
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Re: Age when you started to max out your retirement accounts?

Postby sjl333 » Fri Apr 21, 2017 8:47 pm

turning 28 this year....will be my first time being able to max my 401K. Will be able to max out 401K, Roth, and HSA. Wasn't able to do it any earlier to do school loans and living it large at times (i.e. vacations/going out a lot).

To be quite honest, I'm more inclined to max my 401K not to "save" per se, but the biggest thing is reducing my taxable income. Nobody likes paying taxes, I understand, but I passionately hate it lol. My income is getting too big where I'm giving away too much money to the government (First world problem for sure lol).

Malinois000
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Re: Age when you started to max out your retirement accounts?

Postby Malinois000 » Fri Apr 21, 2017 8:54 pm

Early 40's. I will also receive a healthy pension and also invested fairly heavy in the company deferred comp plan.

SuperGrafx
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Re: Age when you started to max out your retirement accounts?

Postby SuperGrafx » Fri Apr 21, 2017 11:11 pm

34 or 35 I believe.

cusetownusa
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Re: Age when you started to max out your retirement accounts?

Postby cusetownusa » Sat Apr 22, 2017 6:57 am

Candor wrote:I started maxing the 401k 4 years ago at the age of 45 after I paid off the house. It was a great feeling to finally get there and I was planning to bump it up again to the catch-up max this year since I turn 50 but due to job burn-out I actually dropped it to the minimum to get the match so I can increase my regular savings. I'm kind of bummed about no longer maxing my 401k but I need to increase my bridge money to 59.5 so I can retire asap.


Someone else should chime in that is more knowledgeable than me but depending on your marginal tax bracket I think you are making a mistake by not maxing on your tax deferred options prior to saving in a regular tax account. Most likely you will pay a lot of extra taxes going this route. Plus you don't have to wait until 59.5 to access your 401k money if you retire prior to that age.

Something to think about.

welx23
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Re: Age when you started to max out your retirement accounts?

Postby welx23 » Sat Apr 22, 2017 1:44 pm

We just started last year, at 31. My husband maxes out his 401(k) and we just about max out all of the HSA and IRA options that we qualify for. I stay at home and do some consulting work on the side (and dump 20% of that into an IRA). Our goal is somewhere between 15 and 20% to retirement, though it may become more of a stretch if we add another little one to our family.


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