Reply to Do you cut back on 401k/IRA saving if you expect to inherit millions?

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[quote=Anonymous][quote=Anonymous]If you can reasonably expect to inherit a sizable amount by your normal retirement age, and you’ve already accumulated “enough” in your tax advantaged retirement accounts, would it make sense to cut back on the aggressive 401k saving and enjoy the money while you’re young instead? Say you have 1M in your 401k at 40, and will probably get 3–5M when your parents are gone. Maybe only contribute up to the 401k match instead of max it out? I don’t want to live a life of deprivation when I’m young and able bodied only to come in to a fortune when I’m too old to enjoy it.[/quote]

I have a trust worth over $3M now (with 7% returns over the next 30 years it will be worth $23M) but my husband and I are still maxing out our 401Ks and contributing $50K annually to a separate investment account in addition to putting $15K annually into each child’s 529. Our goal is to increase the amount we put into the brokerage account every 5 years ($50K for the next 5 years then $100K for 5 years and so forth). We do not spend extravagantly on anything but are very comfortable. Our salaries have increased a lot in the last two years but our lifestyle has not. We may save less than we could later on but I wouldn’t feel comfortable making a decision like that until we were in our 50s or 60s. We are in our 30s and we both plan to work until mid to late 60s. [/quote]

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