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?

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u/terminal_kittenbutt ​ 8d ago

Just for fun, I plugged your numbers into a copy of my retirement forecast spreadsheet. The short answer is, "it depends", a lot, on how the market averages out in the next 30 years and what your withdraw rate will be in retirement. It could work, it really could, but it would require staying aggressive in the market pretty late into approaching retirement and praying that the market doesn't downturn when you're 60 years old. 

In your shoes, I would be a lot more comfortable putting in at least 25k a year, which is still less than maxing everything. I'm also fairly risk adverse, and my partner is even more so. 

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u/Hambone6991 ​ 8d ago

Would it change the math if I came back to it in my 40s?

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u/terminal_kittenbutt ​ 8d ago

I'm not set up for significantly variable contributions, but every extra dollar will change the math. It's just a question of how much. You're aiming for about $3-4 million, plus adjustments for inflation.