Another Day Another Dollar

Well that is what the saying says…anyway a question I have is am I saving enough. I would love to say I am maxing out my 401k and Roth IRA each year but sadly I am not. I do max contribute to my Roth IRA each year. I am on a trajectory to max my 401k. I should say that unless you are old $17,500 is the max one can put in 401k each year and $5,500 for iras (subject to income limits). So how am I easing my way to maximum contributions. Well I started out my income deferral at 10% and each quarter I up my contribution by 1%. I sometimes forget to increase it but right now I am up to 17%. Doing it this way I really don’t even miss the money. You don’t have to be as aggressive as me you could increase 1% every six months or a year. I figure between the IRA and 401k I will be okay.

The other thing I am saving for is my kid’s college education. I have 529 plans set up for both kids…but how much should I be saving? I think right now state school is around $16,000 per year with room and board. So that is about $64,000 for four years. Hopefully the kids will get some sort of scholarships. Also what about community college for the first two years and finish at a University? That would be some big savings.

The elections are coming up and I would encourage everyone to go out and research the candidates. If you don’t, I would encourage you not to vote.


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