Reply to 900k mortgage. 250k HHI.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We have a $1.2M mortgage and around $250k HHI (2 kids no private)[/quote]

Are you maxing out your kids’ 529s and your 401ks each month? [/quote]
 
529s are almost fully funded (don't want to overfund).   [b]For 401K, maxing to match level. Don't want too much in those due to restrictions. [/b]I'm not saying it's even with the $1.2M but it's manageable.[/quote]

That's about the dumbest thing I've ever heard.  You need a remedial course in money management.  [/quote]

It's called planning. I've made assumptions that say I want to fund to 80% of future cost of 4 year private plus grad school (adjusting for things like partial scholarship, in-state school, doesn't go to grad school, etc). Well, if I grossly overfund, I can either:
* Give money to potential grandkids or relatives
* Withdraw it with penalty

So I effectively lose use of the funds if I overfund. For 401k, earliest penalty free withdrawl is 59 1/2. I'm retiring at 53 so 6 1/2 years where I can't use those funds. So I need funds NOT in a retirement account to retire. Sure, get max matching to get 100% return the first year, but don't over fund. If you just max 401K to live large in retirement and don't retire early, there's nothing wrong with that but neither is there something wrong with planning to have funds before 59 1/2.[/quote]

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