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?
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.
