How much money are you putting in your 401-ks?
Hear me out. I don't care much for a fancy lifestyle...just want decent house, put my kids through college, and keep myself entertained with cheap hobbies. I sure as hell am not going to be one of those Street lifers. If all goes well, I can realistically be done before 50. So should I even bother putting money in my 401-k if I have to wait a decade or longer to take it all out? I can save money on a mortgage downpayment and invest in my personal account anyways so it doesn't seem like a huge loss. Thoughts?
You are a moron if you don’t max out your 401k match
Lower your taxable income and take the free match money.
You seem to think you won’t need money after 59.5. Hopefully you will.
Based on the most helpful WSO content, here are some key points to consider regarding your 401k contributions:
Roth IRA vs. 401k:
Emergency Savings:
Home Downpayment:
Investment Strategy:
Retirement Contributions Order:
Tax Considerations:
Liquidity Needs:
Long-term Planning:
In summary, balancing your 401k contributions with other financial goals like emergency savings and a home downpayment is essential. Prioritize employer matches and Roth IRA contributions, and consider your liquidity needs and tax situation when deciding how much to contribute to your 401k.
Sources: How much do you put into your 401k?, How much do you contribute to your 401k?, The Last "what should I do with my money?" Thread (hopefully), Plan on Buying a House in 3 Years - What to Invest in Until Then, When Should You Start Saving for Retirement?
Yeah it will still be useful to have after the normal retirement age. Just make sure you save enough in taxable accounts to bridge the gap between any early retirement and regular retirement.
You will be able to save more for a house now if you forego the 401k but maybe you will not need the accelerated savings. In 5-10 years I bet you can just save enough cash to be fine.
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