Second question, how much of your salary have ya'll found to be a good amount to put up.  A good general rule of thumb.  I know thats a loaded question, but have ya'll (the finicial guros here) found a general point?  The first answer is contribute to your 401K to take full advantage of your employer's matching.  But they just changed and will now match up to the $15K (your max contributuion).  I can't quite go that much right now, but how much should I be putting up?

I've heard 10%, but then I've also heard 6%. 

First thing is to put aside an amount to cover your bills for at least 3 months for emergency back up if anything were to happen to either of you, ie .. sickness, injury, layoff.

Second is make sure that you have a widely diversified plan based on how soon you would be looking at retireing. Some plans even have set groups of diversity based on what year you would like to set for retirement..ie. 2015, 2025. Like you have allready stated make the most of your employers match and forget the money for a long time

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20' Chapparral Cuddy Walk Around with 200 HP Yamaha  (IRISH WAKE)     Nextel # 154*26*16153

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Do you and your wife work for the same company?  If NOT and you cannot afford to max out both, contribute as much $$ into each account as you can afford per month.  Once the plan with the lower match has maxed out the company match, put all further contributions into the other account.

You really, really need to try to take advantage of the company matching funds!!!  It's a PAY RAISE!!!

Do you use Quicken?  If not, get a copy and spend some time inputing your last couple months bank statements...(some banks allow you to download a statement to Quicken).  Then closely monitor where EVERY dollar goes.

 It's any easy way to track that old "budget" your grandmother used to talk about   You'll be able to tell in a couple months what you can truly afford to save... and where you can cut corners to save a little more.

Jim

I agree with putting up till it hurts and budgeting and everything.  But at the same time, I've trying to find out a minium amount you need to put up.  I guess its just not that simple.

Right now my theory is put any long term savings up in my 401k before putting up elsewhere.  College funds for example.  If I'm not taking advantage of my employees matching, I figured its better to put money in the 401K and take a penatly down the road for college then it would be to limit 401K and start a 529 plan.

http://dinkytown.com/java/Retire401k.html

In your case, I wouldn't put ANY money in your wife's 401k until you've maxed your's out. 

And if you start early college costs can be covered at about  $3.00 per day.

http://www.florida529plans.com/

And an EXCELLENT read on budgeting and saving... like your grandma did.

http://books.google.com/books?id=5O7SAgAACAAJ&dq=inauthor:Dave+inauthor:Ramsey

He can be a bit preachy at times, but it's not "scriptural" as Yahoo describes, and it's simple advice and it'll work.

Good luck,

Jim

Your employer matches 100% up to that $15.5K?  That's pretty good.  I only get matched 100% up to 3% and 50% on the next 2%.  After that 5% they don't match anything. 

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Jon

Now, it'll take $12000 of YOUR money to get $6000 of THEIR money!

That's the break even point when you compare the old and new plans.

IF you can afford the full $15,500 you'll get more ($7750).

The company pulled a fast one on most of it's employees... BUT it IS better IF you can contribute more than $12000!  Until then you lose company contributions with the new plan.

Sneaky huh?  Unless you do the math, the NEW plan sounds better... for A LOT of employees who cannot afford to contribute more, the company makes HUGE gains.

Jim

REMEMBER, your first $6000 was matched 1 for 1 in the old plan. NOW you only get half that for your first $6000!

Jim

TRUE DAT...

BUT 1+1 STILL = 2

 AUradars company pulled a HUGE fast one on it's employees...

If they wanted to be "helpfull" they could have left it a 100% match for the first $6000 then made it a 18.4% match for any employee contributions above $6000 and done virtually the same thing. 

INSTEAD, the company is reducing benefits for lower income employees.

The company is instead pocketing money while appearing more magnanimous.

Jim

"Scars are tatoos with a story"

http://www.forumpictureprocessor.com/gallery.asp?gallery=1841

yeah, they made a change and it wasn't as attactive.  I wouldn't call it a fast one though, but I was dissapointed.  We were bought out several years ago and the change was the new company changing the old companines policy to the new one's. 

I know fishing forum's aren't the best place for finicial information.  However, have you seen the boats on here?????  People here know about money.  Actually, I usually try to goto several different sources for such information.  Forums like this are a good way to see what the "rest of the world" is doing.