I was sitting at my computer this morning and I thought, what if I looked at my Pension like a 401k... because it essentially is a 401k until I decide to pull a pension from it. If I leave my work, the money is mine, and I can leave it in there until I want to and it will earn 6% interest every year with no market risk.
Right now, each month I put $152.42 into my pension (manditory + elected contributions), which is matched by my employer sticking in $150.50 a month. Which turns out to be 9.38% of my GROSS MONTHLY income (ie 2 pay periods). Then, I put an additional $250.00 a month in my ROTH IRA... which turns out to be7.74% of my GROSS MONTHLY income (ie 2 pay periods).
Together, that's $552.92 a month or 17.12% of my GROSS MONTHLY INCOME (again, 2 pay periods.
but in reality, I put in more than that in each month because 2 months a year I put in an extra $1000.00 to my ROTH and I also contribute to my pension with those checks as well. If i average out my paychecks for the year (including my extra checks) my monthly base is $3,468.50. My monthly average to my pension becomes $165.12, & my employers becomes $162.96... which makes my Average Roth contributions become $416.00 a month
For a total of $744.08 a month to retirement out of $3,468.50... which equals 21.45%
holy cow!!!!!!!!!!!!!!
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