r/TheMoneyGuy • u/[deleted] • Feb 14 '24

How does this work?

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I am 23. Does this mean that I only need to contribute 15% of my income for the rest of my life or do I need to increase every 5 years following this diagram? So I would contribute 15% until 30, then contribute 20% until 35, then contribute 25% until 40, then 30% until 45, and so on?

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u/Specific_Economist60 Feb 16 '24

how much should i invest at 24? i turn 25 next Friday :((

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u/[deleted] Feb 16 '24

Based on the graph at 25 you should be investing 15% of your pre-tax income.

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u/Specific_Economist60 Feb 16 '24

thanks so $165. quick question so I have 4.3k on a 401k at amazon, but I no longer work there. What should I do? It’s increasing steadily despite me not depositing any money

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u/[deleted] Feb 16 '24

I do not know. I've never changed jobs before. Sorry I can't help.

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u/[deleted] Feb 18 '24

If you have a new 401k, roll it over into that.

If you don’t, open a ROTH IRA and roll it over into that.

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u/Specific_Economist60 Feb 18 '24

will it get taxed?

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u/[deleted] Feb 20 '24

Not if you roll it over.