[jackie0000]

What percentage of income should go to 401k? I am 29 years old. I read that at this age, you are allowed to contribute up to $15,500 per year. Right now I am contributing about half that amount, about 8.5% of my income.

[kp2171]

You should absolutely, if possible, go for the entire amount that the employer will match. If you do less, you are leaving money "on the table"

After getting the employer match, its time to think a little more. Sometimes its good to push additional monies into a roth.

But really, first thing is first... get every dime you can of the employer money first.

[KCDave]

If your contributing 8.5% already I'm almost certain your above what your employer is matching, but check with your plan to be sure. Some employers are starting ROTH 401K's as well. Once you know for sure that your getting the full match in your 401K you can start adding more to either it or a ROTH, but I would shoot for your contributions to be 15% of your income. BTW, I would make sure you have your emergency fund in place first and your debts paid up. Sounds like your off to a great start though.

[jackie0000]

BTW, I would make sure you have your emergency fund in place first and your debts paid up.

How would you calculate your goal value for an emergency fund?

[kp2171]

And food for thought...

We've got full employer match, then we are pushing money into a 529 fund for the college education of my son, then money into a roth, and I think we are going to take a good chunk of money this year and put it into gold/silver. Wish id done this two years ago, but I just don't think the dollar has come even close to its low point yet.

Uh.. my point, though, was supposed to be if you have young kids a 529 fund might be an option... there are penalties if the child doesn't go to college, as the money gets taxed as income and also a penalty (I think 10%) but I'm willing to take the chance.

And converting dollars into other currency/gold/silver might hedge against a bust in the dollar.

[kp2171]

for emergency, we have a 6 month reserve that could pay all of our normal fixed bills and projected variable expenses.

[KCDave]

How would you calculate your goal value for an emergency fund?

Most folks say 3-6 months of your net income. But there are some things to consider.

- Are both you and your wife employed
- Do you have short term and long term disability
- Are your jobs in demand and could you easily get another
- Is your likely hood of getting laid off low
- Do you have other investments that could be tapped

If you said yes to all of these you would more than likely only need a 3 month emergency fund. If you said no you may want the full 6 months.