UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76238  
Subject: Is this a sin, or being practical? Date: 2/28/2014 4:27 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I've always been a big saver. Even as a kid. I just like having things squirreled away just in case and I definitely don't want to work until I can't stand. Straight out of college I started funding my 401K and a Roth IRA, and not too long after working, I started maxing out my 401K. I'm 32 now, so I've probably been maxing it out for 6 or 7 years.

But life changes. I moved to the NY metro area 5 years ago where expenses are high (and took a slight paycut in doing so). I bought a house 2.5 years ago in NJ with my $12K in property taxes for 1/3 of an acre (*after* I got it knocked down on appeal, heh). And now, I have a kid on the way and am finding out the cost of child care around here... lets just say many colleges are less.

I'm faced with the internal crisis of actually considering scaling back on retirement savings. My wife and I make a good living, and it feels like it should be enough, but everything costs so much. Nevermind saving for college, and all the 5-digit periodic home owner expenses (new roof, new porch, repaving the driveway, etc). I do some things around the house, but I'm not about to start cutting walls open.

I'm looking at cutting back on some expenses - like I don't think we'll be doing much expensive traveling for a while, and we could stand to eat out less, and bring lunches to work - but there's not much I can do about mortgage, taxes, forthcoming child care, etc.

Retirement calculators tell me I have a good chance of being able to retire at 55 with meaningful income even under less than ideal market conditions. Scaling back contributions don't seem to hurt those projections. So I guess it's good that it feels wrong to me to consider cutting back on savings, as opposed to so many Americans who feel wrong saving at all. But it still does.

It is wrong to think about cutting back for other life priorities? Am I sinning against Fool-kind? Or is that just the way life goes?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement