In January I was able to finally max out my personal Roth IRA ($5,500). This is the first year I’ve had my own Roth IRA and I am extremely happy to report that I was able to max it out. The reason I have not done this before is because I receive a company match and profit sharing plan via my workplace 401(k). So I have managed to save a decent amount already for my retirement, thanks to my company retirement plan, especially their match.
My wife is self-employed and we’ve been contributing to a Roth IRA for her for years. We haven’t always been able to max it out ($5,500) but we’ve have a few times and we’ve been great lately.
For the first time ever this year I decided to crunch all our retirement savings for 2016 to determine exactly what percentage of our income we are contributing to retirement. As a general rule of thumb, most certified financial experts suggest at least 10-15%.
Well I am happy to report that my wife and I managed to save 18% of our income towards retirement. I am extremely happy with that result. My goal is to get closer to 20% though, then begin throwing any extra money towards my mortgage.