Am I saving too much for retirement?

[starry]

dang, I just did my first post, and seeing this made me panic a little. i'm about 12 years older than you and have 140K in my 401K. I don't max out. I do like 2 or 3 percentage points below max out. Plus, my wife and I spend a fair amount - we love music, arts, EATING!

we're thinking of having kids....you're post is making me pause

[Eric80]

I think you can never have too much for retirement because this money can also come in handy before then - say for an emergency or to cover medical costs etc... Definitely keep going you will see

[20sfinances]

I agree with many of the comments here. There is really never too much. It is hard to estimate how much you will really need, so why not be prepared. Health costs can rise unexpectedly and the last thing you want is to not be able to cover your expenses. With that said, don't let it from enjoying life a little or doing what you want to do with your life.

[MonkeyMama]

These are my stats:

What I'm considering doing:
Switching over contributions to traditional 401k
Lowering contribution rate to 6% ( which is 9% after employer match)
Additional savings will go into non-retirement accounts

Any opinions on any of the above?

This is hard to answer without knowing your tax situation. But, you hinted that your income/taxes are high.

I would absolutely switch over to traditional 401k. You've got a good start to your ROTHs (& they will grow more tax-free since you started those younger. They simply have longer for your returns to compound). I believe it's wise to spread your tax risk and I'd also personally take the current tax break if I were in a higher tax bracket.

I personally take the view that 10% is ample for retirement, when you have been saving diligently since early 20s. OF course, you aren't saying that you want to save less for retirement - just have less tied up in retirement specific funds.

I'd maybe aim for 10% with employer match, but I do not agree with the mind that you can't count employers match. The point is not to RELY on employers match. While the match is there, take advantage and build up taxable savings, sure.

I am personally pretty opposed to taxable savings, BUT, I have already bought a home (not saving for anything big) and am not gung ho on early retirement. Well, I mean that I prefer to max out 401k, HSA, pay down mortgage, etc., before I start investing in taxable accounts. I will some day - but is not a priority for me. BUT, if your plan is to retire early, or save for a home, I think it is prudent to have some more accessible money in taxable accounts.

Just my two cents!

P.S. I think it is hard to save "too much." Thing is, if you felt you saved too much, then you have the money to decide to spend. BUT, it is definitely possible to tie up too much money into retirement, where you can't access it if you need it. It happens.

[greenskeeper]

i believe there is no such thing as saving too much

you can never save too much

if you can save 1M dollars a month, do it

you'll be happy when you grow ole

yes but you need to have it allocated in different ways for when you need access to the savings.

I think in the new world we are in since 2006, 5% return after inflation is about the best you can hope for. But thats my own opinion and have made changes in my savings to reflect that.

[snafu]

While everyone seems to focus on retirement $$$, I've observed other significant factors. Do you have a plan for retirement? In 2 or 3 decades, what age will you retire? Will you be retired for 35 + years? Will the government change the rules?

I happen to live in an older condo complex and would guess 50% of our neighbors are seniors. I saw a pattern from my parent's and their contemporaries. Anecdotally...it was very important to have the mortgage paid off and only need to pay living expenses. Most important of all was a healthy lifestyle. 1st year was house upgrade and travel. Year 2 was doing stuff they liked. By year 5 seniors seem to be selling their home and moving to a condo or assisted living depending on health factors.

Around here most have retired between 55 - 60 y/o. By year 5 they are taking classes, doing volunteer work or running their own small business. They don't say it but it seems they were bored unless there was a specific, retirement plan. My adjoining neighbor & DH participate in every senior golf tournament they can find from November to April. They seem to have visited every golf course in the USA, Mexico, Central Am and Asia. This year they've spent the summer golfing and are looking for part-time work. They have defined pensions but need a purpose.

By year ten, often one spouse has passed on. I've been to too many funerals of such nice people lately.