Around May of last year, the small company I work for finally started offering a 401k plan. That left me about half a year to save the 14K limit. To get there I ended up putting 75% of about 6 weeks of paycheck. Of course those 6 weeks were just around the holidays when money is the most tight. I actually dipped into my savings so that I could max out my retirement. I’m not sure if that’s the right thing to do, but it feels right to save on taxes.
That was then, but now it’s behind me. Or is it… With the impending move to San Francisco, I might be getting a new job that requires me to wait until I can join the 401k. Worse yet, it may not even have a 401k plan. So I’ve decided to do it again. Doing a little rough math, I think I would need to go to the 75% for the next two months. It’s going to be tough and I don’t know if I can do it. However, if I do, I should be able to build up my savings in the last three months of the year.