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Is it better to invest in your life now or for retirement? What is a proper balance?

Asked by RedKnight (493points) August 3rd, 2015

I’ve been very conflicted about retirement, 401k, and IRA options lately. I graduated recently and have already bolstered my 401k a little from an internship. I’ve been doing research and using a lot of retirement calculators and it seems like in order to have sufficient retirement here in the US, you need to put away a lot every month. I’m just scared of not putting away enough. At the same time however, life is never promised and I don’t want to sacrifice my life now and end up not touching majority or any of the retirement later on in life(65+). Since this is anonymous I feel more comfortable sharing some more specific details. My company matches four percent of the 401k and I make around 75k. I was thinking of contributing 6 percent for a total of 10 percent of my salary towards the 401k. Is this enough? What is the best option to take? I feel like I’m choosing between now and later and it’s not a good feeling. I was also thinking of putting maybe 1–2% into a Roth IRA. Thanks for the help!

TL;DR – Is 10 percent of your salary a year enough for retirement? What should someone aim at saving? Is it better to live for the now or the future?

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