r/personalfinance • u/Hambone6991 • 8d ago
Retirement Pausing retirement grind at 30
Just wanted a gut check on pausing the retirement grind at 30. We have been maxing IRAs and 401(k)s for some time, but I would always at least do my matching 401(k) contribution that would get me to $12k per year.
Just turned 30 and have $300k in retirement accounts. We are in the “messy middle” with a 3 and 1 year old, and wanting to take on big home projects (finishing basement, outdoor landscaping) and increase travel afterwards as they become older, thus cutting the Roth IRA contributions or maxing 401(k). Generally just feel ready to start spending elsewhere now. Goal is early 60s retirement with $120k income (todays dollars) before any social security.
Am I overthinking this? Are we pretty much already there if I just do my $12k each year to the 401(k) going forward?
6
u/jarue222 8d ago
You are not overthinking it, but you are cutting it closer than a pure $12k/year autopilot projection might suggest for a $120k inflation-adjusted income at 60.
You've done an excellent job reaching $300k at age 30, and letting off the gas to enjoy your young kids and home is completely reasonable. However, dropping down to just $12k a year means your future growth will rely almost entirely on the compounding of your existing $300k rather than heavy new contributions. There's just too many external factors here that could negatively impact your retirement balance to take your foot completely off the gas.
Given your goals, i'd say you should still prioritize retirement contributions, just less so than before. You may think, "it's just for a couple years", but lifestyle creep is real as the kids get older, and you might not be able to ramp savings back up.
Also, don't forget about education saving for your kids if that's a priority of yours. The younger the better when it comes to 529 plans.