[quote=AN]With regards to saving $4k/month. I don’t think that’s optimistic at all. As I said in prior post, we’re making less than $150k and we’re saving on average of $4k/month. We’re not even close to our parents in term of frugality. We go on vacations, we buy luxury cars, we eat out at fancy restaurants, etc. It’s all about setting goals and making saving for retirement as a priority.[/quote]
I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.
As far as $4k/month savings – if you’re contributing max to the 401k – that’s $2750/month for a 2 income household right there. Toss in the 529 contributions for your kids college fund… and your taxable investments and income… it’s not that hard to get to $4k. Especially if you have a habit of using employee stock purchase plans to fund savings/investing or annual bonuses being allocated for savings/investing.
We’re not at 4k… but we’re getting close. If they hadn’t decimated my bonus the last few years we would have hit the 4k average/month figure.
