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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OK I never say this, but you are saving too much for retirement right now. You are saving 21% of your gross income and then another 6.7%  in after tax income for the Roth. All of this is fine, except that you clearly have a pension (you and your DH? or just one of you?). And on top of that another $1000 for emergencies? You don't own a house, you have (I'm assuming) decent medical insurance. What emergencies are you thinking you will have aside from job loss (which I'm going to guess is unlikely given you have a pension which to me means you work for the government).  All told you are saving 37.6% of your gross income!

Your fixed expenses are only $2500 per month so you need about $15K in emergency savings (6 months worth). Stop saving for emergencies, stop saving in your Roth, and decrease your retirement savings to 10% of your income and you will be able to put away $50K per year towards a home. It will take you only two years to build up a decent down payment. Get on the property ladder and start building some equity.[/quote]

This person nailed it. [/quote]

Wrong. Without kids, they should still be able to max the IRA and then stash at least 24k a year for a downpayment. If they stopped maxing IRAs, I would only do it 1-2 years to save for a house, but when buying a house, do that math to go back to maxing IRAs. When people stop saving as much, it is hard to go back. The time spent in the IRAs matters so much due to the compound interest.[/quote]

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