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Subject:  Re: Only 27, but... Date:  12/11/2004  11:10 PM
Author:  dianakalt Number:  205320 of 876424

I'm curious how you all think I have done with this first step of my plan? Am I putting too much away too early? Is my math wrong? I would really appreciate any feedback, since I want this plan to start on January 1 of this year.

Hi Ryan,

I'm not one of the FIREd members of this board, so my perspective may be different, but I think that it is commendable that you and your new wife are planning to start saving for retirement like you are so early in your career and marriage. I am a bit tired this evening to be trying to analyze your numbers, but for anyone to be putting almost 1K per month away for retirement and be committed to LBTM immediately after leaving grad school is great.

My biggest piece of advice to you is to BANK YOUR RAISES. I have been doing this for quite some time. Basically, every year when I get my annual raise, I increase my 401k contribution rate by the amount of the raise. In less than 3 years, I've gone from a 6% contribution rate to a 19% contribution rate by using this methodology, but my take-home pay has been almost exactly the same. (although I must confess that not all 13% of that increase was raises...a bit of it was just me deciding to save more). I am getting really close to maxing my 401k by doing this, and then it is on to the Roth IRA.

Good luck to you, and I look forward to reading more of the replies to your query.


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