% for 401k contribution

Is there too much someone can contribute to their 401k? Currently I have about 1.85M saved in retirement and no debt (we paid off the house two years ago). We currently make 158k per year. I contribute 20% (5% traditional + 15% roth) and my company also matches 3%. My plan is to max out the 401k for the year (I am over 50). I haven’t maxed it out since 2008.

I feel that I am contributing too much, so much so that I am not enjoying my current life. We don’t have too much spending money (we are very frugal). I wonder if I should cut back the retirement savings (to enjoy more the present and not worry so much about the future). I want to be VERY comfortable in retirement, but I also want to enjoy where we are today.

Any suggestions on how to balance this? Should I cut back on the retirement savings?

Anxious retirement contributor

It is possible to save too much. The vast majority of people aren’t anywhere near that, but it sounds like you might be. I’d suggest checking out some of the doctor FIRE blogs, as they grapple with this issue more than most. Here’s one I like:

Physician on FIRE

This guy (posting at T-Rowe Price’s web site) suggests that you ought to have about 10x your salary saved by the time you are 60. You’re in good shape according to him.

That’s a good indicator. I wouldn’t feel bad about cutting back. If I had 1.85MM and no debt, I’d seriously consider retiring today (and I’m younger than you).

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I would suggest you buy or make your own retirement planning software/spreadsheet to help you figure out how long your money will last and how much income you can expect during your retirement. We bought The Complete Retirement Planner

that allows us to input our assets, ages, life expectancy, year we begin Social Security, taxes, expenses, etc. It has default assumptions that you can customize. Make copies of the spreadsheet to use for different scenarios you might be considering (retire early/late, take SS early/late, move to a different state). You might be pleasantly surprised at what it predicts.

Meanwhile, budget some money for whatever brings you joy. Do things now that require mobility because 15-20 years from now you may not have it.

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You need to be able to enjoy your life and still save but maybe not as much since your money has been making money for years.