To increase savings rate or not?

[Tree0164]

'save until it hurts' and it doesn't hurt yet"

Smart man! I think your plan is good!! Where do you think you will put the extra savings.

Curious as for your daughter's 529 do you think you will have it fully funded or will she need to take out loans.

[disneysteve]

How would the "big picture" change by changing the saving rate? By this I mean will you achieve your mid-term/long term goal earlier?

Where do you think you will put the extra savings.

The money will get added to existing accounts, specifically taxable mutual fund investments most likely.

Curious as for your daughter's 529 do you think you will have it fully funded or will she need to take out loans.

Who knows what "fully funded" means? No, I don't expect the 529 to cover 100% of expenses. I want to avoid overfunding it and being left with money in the account that we have to pay penalty and taxes on to withdraw. If the 529 covers 1/3 to 1/2, that would be fine.

[LivingAlmostLarge]

What is the use of the money for? To retire earlier? Shave off 3 years off the mortgage?

[disneysteve]

What is the use of the money for? To retire earlier? Shave off 3 years off the mortgage?

Retire earlier is always the master goal.

We do have a home equity loan that I prepay, so getting rid of that is a short-term goal. I hope to have it paid off by the end of 2009. Increasing the savings rate would speed that up a bit.

[LivingAlmostLarge]

I wonder if all our saving is for nil? I know people say to retire early, but when given the opportunity would we really take it?

I'm not saying save but I wonder if we really need to save so much? DH's getting on me about not saving so much. Granted we're relatively young, and have no kids (MY POINT) now is the time to sacrifice. Later we'll have sacrifices, but we'll be able to roll with it.

So in 25 years will it matter if we have 1 million or 3 million?

[yellow heel]

I think you will thank yourself later. At least that is what I tell myself.

[disneysteve]

I wonder if all our saving is for nil? I know people say to retire early, but when given the opportunity would we really take it?

If my portfolio balance magically became $4 million dollars tomorrow, I would absolutely, 100%, unequivocally give notice at work. I would transfer a bunch of money into municipal bonds to secure my income and I would hang up my stethescope.

Not to say I wouldn't work at all. I would get more active selling collectibles again, get back on ebay, and do more volunteer work, get more involved with my synagogue, and whatever came along. I'd maintain my medical license so that I could do things like teaching, lecturing, maybe some medical-legal work - who knows.

[sweeps]

That would make for a good thread topic. How much would it take for you to retire right this minute. I think it would be $3 million for me.

[disneysteve]

That would make for a good thread topic. How much would it take for you to retire right this minute. I think it would be $3 million for me.

I think I'll start that thread with your quote.