I've been putting money into my 401K since my first job right after college, 26 years ago. My dad's advice was basically you've never made 'real' money before; put as much as you can into the 401k and forget about it. Well it works. 26 years later my collection of 401Ks and roll over IRAs from old jobs has landed me at about $1.5M (almost all of it is still pretax). A 10% average return will get me to $5M in 13 years, 7% takes 18 years, and 6.2% gets it done in 20 years. $5M is more than I need but it's a nice round number, and my guess is I'm probably 20 years away from retirement.
However, before I think about retirement, I'm starting a 10 year stretch of putting 3 kids through college. It may make sense to slow down or stop the retirement savings and use current income to help pay for school. Yes I know the advice is retirement first then help the kids, but when do you have enough? How much more should I continue to contribute (above my company match)?
Submitted November 17, 2020 at 11:08PM by FlyingPartridge https://ift.tt/38TBw6Q
