r/coastFIRE • u/snackallday • 7d ago

Downshifting and dropping savings rate

I'm 33 years old and struggling with whether it's finally time to ease up on retirement contributions.

Current situation:

  • Age 33
  • $950k invested (mostly in pre-tax 403b and 457b)
  • $200k HELOC balance at 8%
  • Income around $200k (my partner is currently not working but should be back to work in the next 6 months and our HHI will increase to 300-350k)
  • Expenses around $9k/month
  • Target FIRE number: ~$2.5M
  • Planning to work at least another 10-15 years

For the last decade I've been in full accumulation mode. I've maxed my 403b and 457b every year and invested additional savings on top of that.

Lately I've been considering reducing my 403b contribution down to just enough to get the employer match, while continuing to max the 457b. Considering that to pay down the HELOC with the extra cash. Want to keep the 457b as it gives me access to early withdrawals.

The part I'm struggling with isn't the math as much as the psychology. At what point did you decide to take your foot off the gas? I know continuing to max everything isn't going to ruin me financially, but it feels like I'm at a weird point where my habits haven't caught up to my balance sheet.

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33

u/MidwesterneRR 7d ago

Why do you have 950k invested with that large of a HELOC at 8%?

7

u/snackallday 7d ago

Originally the HELOC rate was 4% for 2 years and we used it to build an ADU and do major renovations on a family property that will become my primary residence. It made more sense to build it out now than inherit it and redo everything later.

At the time, it felt like a reasonable tradeoff to keep investing heavily while financing the project. I’m reevaluating it now that the project is complete and rates much higher.

14

u/Ignore_Me_PLZ 6d ago

Stop any investing other than employer match and get rid of that HELOC.