How much would you contribute to your 401k/Roth if there was no limit?

[Caoineag]

Steve, you just nailed what I am going through currently. I had run the numbers, and thought I was doing great by maxing out 401k and Roth for my partner and me. We just met with our Financial Advisor the other night and when he ran the scenarios, figured out that we will not be able to retire as early as we had hoped (age 58 and 60, 11 years from now). We will each have to work until age 62. Still early, but a surprise as I thought we were really socking it away (and really can't save any more at this time due to 3 sons in or nearing college). Disappointing, but at least we found out now. Retirement is costly people, and with folks living longer and retiring earlier there are more years to cover (we are trying to cover til age 95). Sigh. Back to work!

PS - I'd be interested to know if anyone else has had these scenarios run and determined a retirement goal age and $ nuimber. And what assuptions did you use (as far as monthly expenses, living to what age, etc.) For expenses we used $6150/month and came up short at age 87/89. At $5150 we were ok til 95, but the advisor said that monthly expense was probably too low.

No goal age yet but the reason that I ended up on this forum is that I was getting our debts paid off and I was figuring out amount of money needed for retirement. Quickly discovered that my desire for savings would require taxable accounts if I wanted to retire at any decent age. I am 26 but even at this age, I am not sure if we will be able to retire early. Especially given health care costs.

[KellyB]

Kelly, problem is how long have you been maxing out retirement for? 10 years? 20 years? If you are 20 and sock it away $25k for 20 years, I think you'll be a better position to retire early. Plus you'll be used to living on less.

LivingAlmostLarge - You're right, I have only been maxing for about 6 years. Always contributed before that (usually around 5 - 6%). Everything I see puts me "ahead" of the game, but it is the retiring early and covering expenses for 35 - 40 years is a loooooong time with no outside income, living off investments only.

[LivingAlmostLarge]

LOL, hence why we started to max out as soon as possible, which is now and 35 years from normal retirement age and 25 years otherwise. The earlier you start the better. People always say compound interest and it really makes a difference.

[pearlieq]

This may sound a bit counterintuitive, but I kind of appreciate having limits, because otherwise I would have trouble saying "when".

If there were no limit on contributions, I think I would feel pressured to contribute every available penny to the cause. I'm not saying I would, but it would add another layer of guilt to spending money.

I know I could still invest my money in other places, but there isn't quite the incentive that goes along with the 401k or Roth. I can sleep at night without a taxable account (for now) but I'd have a hard time leaving Roth capacity on the table.