Quote:
Originally Posted by terpkristin
It's been recommended to me to increase my 401k contribution percentage each year when it comes time for my annual raise, anyway. I've done this for the 5 years I've worked at my company and found it to be the perfect time, as with the raise, it's it's not like I end up "missing" the money.
Edit to clarify: I don't up my contribution by the entire amount of my raise, but I up it by a little. That way, I still get a bigger paycheck but also contribute just a bit more.
I am also young (30 now) and have a somewhat risky portfolio...the thought being that if it tanks, I have time to make it back up. I'll do that for a bit longer then re-arrange it into safer options that earn less but are more stable.
/tk
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That's a very smart idea - I actually do the same thing myself. I might be more conservative than most, but I generally try and put in half of my raise back into my 401K. Like Terp, I'm still young, so there will come a day when I can't do that any longer, as I'll already have maxed out, but I figure it's a good habit for now.