Reply to If your HHI is 200K, how much house would you buy?

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[quote=Anonymous][quote=Anonymous]Putting 15% into a 401k each month seems excessive to me.  I would consider dropping the 401k down to 7.5% and adding that money to a potential mortgage payment.  That would give you an extra 1250$ per month to add to a mortgage payment.  Paying interest on the mortgage will offset the loss of the tax advantage of the money that was going to the 401k.  My guess is your options will be much better house wise with a payment of circa 3800$ opposed to 2600.[/quote]

OP here: I am a daughter of a financial planner, and I have always heard to save 15% of your income for retirement (20% w/match). Then again, I work for a welfare agency and get to see the opposite end of the spectrum where people didn't save enough for retirement, so I am overly cautious. http://money.cnn.com/2007/01/08/pf/expert/expert.moneymag/index.htm (Although, this article would suggest we are on the right track). Anyhoo, I know I need to continue putting 15% becuase I have to reduce my AGI for student loan purpose (income based loans).

BUt yes, you are 100% right that our options would be much better w/a payment of $3800 vs. $2600. I personally would rather just save up the money so we can put more money down on a larger/better house and still keep the mortgage payment low. [/quote]

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