What percentage of income should I invest?
Investing
Many planners suggest 15-25% of gross income for high earners, though the right number depends on goals, age, debt, and what 'invest' includes (retirement plus taxable investing).
Rules of thumb vs your situation
The 15% rule originated for retirement-only saving. For high earners with multi-decade horizons and ambitious goals, the appropriate total savings rate is usually higher.
What counts
Match the rule to its assumptions. 401(k), match, IRA, HSA, taxable brokerage, and after-tax 401(k) all count. Mortgage principal sometimes does, depending on framing.
Working backward from goals
A more useful approach: start from desired outcomes (retirement age, target lifestyle, major goals), back-solve the contribution rate. The rule of thumb becomes a check, not the answer.
What people often get wrong
- Using 15% as a ceiling instead of a floor
- Counting employer match toward a personal goal
- Saving heavily but not allocating thoughtfully
What to think about next
- Calculate your current total savings rate including all account types.
- Compare it to a back-solved rate from your goals.
- Choose one specific increase to implement this quarter.
When to consider working with a CFP®
Working with a CFP® can help when these decisions feel intertwined, taxes, investments, cash flow, and life goals tend to move together, and a planning relationship can offer structure, prioritization, and accountability over time.
Frequently Asked Questions
Is more always better?
No. Over-saving without clarity often creates resentment of the plan and unsustainable lifestyle compression.
Talk to a CFP® who works with high earners.
Connect with a CFP® to help you navigate this decision and build a comprehensive financial strategy.
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