"First off, I am really impressed with your nest egg, an admirable amount for a 34 year old. However, I am somewhat baffled by your reluctance to dip into it. I slapped together a little spreadsheet in Excel, and plugging in the numbers, (190K now (250K minus the 60K of debt) using a conservative 10% annual return, and contributing 2K a year, you still end up with over 3 Million dollars. Not exactly scaping by, in my book"A couple of small flaws in your calculations.(1) I would have to withdraw about $100K to get $60K after taxes and penalties.(2) I compute my retirement assumptions with a lifetime average return on 8.5%, inflation at 4.5%, and the money having to last until age 98. Using these numbers, $3Mil only last 10-15 years in future dollars.