Reply to Anyone NOT maxing out your 401(k) even though you're making decent money?

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[quote=Anonymous][quote=Anonymous]We're a young 30s couple that is saving for retirement but not maxing out on a $250k HHI. We're saving the difference in taxable accounts instead. We're hoping to have our second child next year and want to make sure we have accessible money in case things happen (illness, job loss, accidentally conceiving twins, etc). I think tax deferred accounts are great for locking the money up and making sure you save it for retirement, but that means it's hard to get your hands on if you really need it. At this point in our lives, I'm ok with only putting $20k/year in tax deferred accounts between the two of us.  [/quote]

The most compelling argument I heard went as follows. Take a look at those websites that show how compound interest shows your money's growth over time. Like the kind that says what growth you get in year 1,2,..30... 40. etc... And of course the largest one is the last one. That last one is the one you're giving up by not contributing now. There's always the ability to stop, or borrow from your accounts.

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