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Subject:  Re: Contributng Too Much towards Retirement??? Date:  1/28/2004  1:20 PM
Author:  ortman Number:  38790 of 76418

My question is if people think that we're putting too much money towards retirement (possibly not enough???) and if maybe I shouldn't be investing some of the weekly salary elsewhere (such as taxable investment accounts, etc.)

In my completely uneducated opinion based solely upon my limited experience with my own finances, you are not saving too much. :)

And, provided that my bills are all paid and we are able to live a comfortable life, I NEVER think I'm saving *too* much. There's no such thing as too much, in my opinion. More money saved is an earlier retirement, as far as I'm concerned.

That said, I might allocate my savings differently. I personally max out both our ROTH IRAs and 401k accounts. We have no kids, to it's easy enough to do.

If you can't max out all the accounts, it might be best to contribute to your 401k ONLY to the extent that there is matching. Then max out your ROTH IRAs. Then go back and max out the 401k.

I've seen others advocate the same order of priority, so at least I have some company.

This is all assuming that you have no credit card debt and have some money in the bank. When I had credit card debt, it came after company matched 401k contributions, but before ROTH IRAs in my order of priorities.

Also, keep some cash on hand for emergencies. I like to have enough to carry us for 6 months with no income; though that may be longer than necessary. It just makes me feel more comfortable.

-Ortman
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