No. of Recommendations: 2
Wow you sound EXACTLY like me and DH. We are both 25, engineers, and graduated three years ago. We also have only 1 student loan and the mortgage.

Here's how WE decided to allocate money.

1) Contributed enough to get 401k match.
2) Saved up for a home.
3) Maxed out Roths.
4) Maxed out 401ks.
5) Saved extra $$ in a regular high yield savings account.

I don't think there is ANYTHING wrong with putting other goals ahead of retirement. However, you need to have at least a bare minimum amount that you contribute each month. For instance, if one goal you have is to update the home and the other goal is to retire by 50, simply calculate how much you need to save each month to retire by 50 and then throw all the rest of your money at your home savings.

And, don't forget, there are ways around the 59 1/2 withdrawal rule (I believe its called rule 72t). So don't be afraid to save that money in retirement accounts.

DH and I decided that we wouldn't aggressively invest any leftover money each month. Instead, we're saving it in a regular high yield savings account. There are tons of reasons for this: we don't know if we're in our forever home and what it will take to get us in it, we don't know how our lives will change when we have kids, we don't know if we'll need to relocate for better job prospects, we don't know how our parent's retirment will affect us (will we want to move closer to them, further away?).

There are just too many unknowns out there for us to put even more cash towards retirement. And since we don't know WHEN we'll need the money (or for what), we've decided just to use it to bulk up regular savings.

We're maxing out our retirement because early retirement is what's most important to US. If you have other things that are more important, then its absolutley fine to fund them first.

Its also fine to keep the money invested outside of tax deferred accounts. But it helps if you know when you're going to need it so you can set up an appropriate investing strategy for it.
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