What is our plan for savings this year?
We borrowed $14k from my TSP (government version of the 401k). So far we have paid off $2k and have $12k remaining.
So our plan for 2010 is to pay back this loan since all this goes to investments.
I am also saving 5% of income in TSP which gets a 4% matching. So 9% of my income is going into retirement.
TSP Savings: $7k (pretax)
Loan Payment: $14k
Roth IRA: $5k (after tax)
Totalling: $26k this year or $2k a month (note this includes company matching and pretax monies).
We'll see if we can do this. If we can consistently save 2k per month... at 10% return for 30 years... that's a little bit over $4 million.
Not bad with a little bit of planning. What can a budget do for you?