Answer :
Given that Tyler and Megan have a combined income of 105,000 dollars per year, it is suggestible for them to contribute 5,750 dollars to their 401(k) plan.
This suggestion is made considering typical financial advice which often recommends contributing a certain percentage of one's income to retirement savings. Though employer matching plans are an additional advantage, the absence of such plans does not negate the importance of personal contributions to secure a comfortable retirement.
Ensuring they save a substantial amount, 5,750 dollars out of their annual income, strikes a balance between current living expenses and future financial security. This figure aims to provide them with sufficient savings growth over the years through compounded returns, thus aiding in building a stable retirement fund.
This suggestion is made considering typical financial advice which often recommends contributing a certain percentage of one's income to retirement savings. Though employer matching plans are an additional advantage, the absence of such plans does not negate the importance of personal contributions to secure a comfortable retirement.
Ensuring they save a substantial amount, 5,750 dollars out of their annual income, strikes a balance between current living expenses and future financial security. This figure aims to provide them with sufficient savings growth over the years through compounded returns, thus aiding in building a stable retirement fund.
