Stop Guessing Your Savings Rate

High earner or not, you should never be guessing how much you “should” be saving. You need a plan that ties your savings target to your real goals, and the right accounts to fund them.

In this episode, Dave Grant and Heather Townsend break down how to set the right savings target (without generic internet percentages), how to build SMART goals, and how to balance living today with building tomorrow.  

What you’ll learn…

• Why goals come first, and why “I’ll retire when I hit X” is not a real plan  

• The SMART goal framework (with real examples)  

• How short-term goals and long-term goals can conflict, and how to balance them  

• Why tax brackets and “wrong buckets” can wreck an otherwise good savings plan  

• Dollar targets vs percentages: when each works, and why most people get confused  

• How to handle irregular income (bonus, stock comp, commission, business owners) with simple rules  

• A full case study: Joe and Susan, the lake house goal, and the surprise result (they may be saving too much)  

• “What Would You Do?” Q&A on 401(k) over-reliance, couples who disagree on saving, and pensions vs Roth  

Chapters

00:00 Welcome + what this episode is about  

00:38 Start here: goals drive your savings plan  

01:24 The SMART goal framework (with examples)  

04:13 Short-term vs long-term goals, and the tension between today and tomorrow  

05:28 Back into the goal: assets, income, and tax planning  

07:32 The “lopsided portfolio” problem (all pre-tax, no flexibility)  

08:39 Irregular income: how to set targets when bonuses and stock swing  

10:03 Saving targets: why they use dollar amounts, not generic percentages  

11:59 Why percentages break down (gross vs net, bucket confusion, payroll realities)  

14:44 When a percentage is still a good starting point  

17:04 Case study: Joe and Susan, retirement in 7 years, and buying the lake house  

21:01 The secret weapon: accountability (and what if returns are flat?)  

21:49 What Would You Do? Q1: “I only max my 401(k). Am I doing it right?”  

23:57 What Would You Do? Q2: Saver vs spender in marriage  

25:30 What Would You Do? Q3: Pension + great match… traditional or Roth?  

27:35 Highlights  

32:08 Where to watch + how to submit a question  

32:35 Disclaimer