I wouldn't say money burns a hole in my pocket, but there are certain things I'd like to spend on - some are complete unneeded luxuries (car) and some that would add to the value of the house (new master bath, etc.).

I also have a 15 year mtg. With the 15 year mtg and the big chunks to my 401K, I'm ok with playing with some money for a change. The 15 year mtg has kept me honest, now it is time to splurge! woo hoo.

All that said, I do like the advice from the "savers" here. I think it a bit extreme, but so many americans have nothing saved so its nice to see the other extreme out there. Our HHI will prob reach $450K - $500K in 2014 and I think we deserve a little something something for once.

How much on savings do you have not in the 401k? It's not a piggy bank. If you have 6-8 months of living expenses and a good 5-10 k in the rainy day fund, then you can think of spending on something non-essential. You also don't say how old you are. If you're in your 20s, then you're in great shape. If you're in your 40s, you're way behind the curve.

I'm in my 40s, have about 450k in my 401, a ton of equity in my house, and more than a year of living expenses in cash reserves. I need to put more in my child's 529 - although that is likely to get paid with family money. I don't feel secure enough at my income level to take anything other than a basic vacation (like a weekend away road trip) and I have a paid - off car that is going to go until it dies.

They way to really have enough is not to behave like money burns a hole in your pocket. From your questions, I get the sense that it does. Live like you're poor, and then you do t have to worry about when life bites you in the ass. You can pay for the new roof, the new HVAC, the health copays that insurance doesn't cover, etc.

Anonymous wrote:

Anonymous wrote:This thread is full I people who don't understand the OP can legally contribute $50k. Guys, it's an employer contribution. As his own employer he can decide to whatever he wants.

maybe he could have mentioned that up front.

He did. He said he was a part owner. Read the OP.

Anonymous wrote:This thread is full I people who don't understand the OP can legally contribute $50k. Guys, it's an employer contribution. As his own employer he can decide to whatever he wants.

yep, this is the OP. I don't understand the rules exactly (obviously), but as an owner and "highly compensated employee", we can fund a lot more into our 401K than the $17.5Kcap.

But regardless, assuming you could contribute $50K into a retirement account, it seems you would be less nervous about other investment options - needing to invest in real estate or keep adding to your personal retirement account (not a tax-deferred account).

I'm trying to budget for the end of the year and plan how much money to blow (car & vacation) and how much to save (529, reserves and then X).

Anonymous wrote:This thread is full I people who don't understand the OP can legally contribute $50k. Guys, it's an employer contribution. As his own employer he can decide to whatever he wants.

maybe he could have mentioned that up front.

This thread is full I people who don't understand the OP can legally contribute $50k. Guys, it's an employer contribution. As his own employer he can decide to whatever he wants.

Anonymous wrote:no you can't. you should consult a financial planner.

Yes you can if you own your own firm. You contribute $17.5k the company, which is yours, contributes the balance. I run a business that generates as close to the necessary figure I do exactly this. I put in $17.5, my day job puts in $13 and change and my part time business handles the balance every year.

I put $55k in my 401k last year through self contribution, over 50 bump and profit share. I still saved for college and make sure I have adequate reserves (more critical as an owner since income is not guaranteed). I don't do as much other retirement savings since more is going to the 401k.

Also, are you saying that 401k savings are ALL your savings? You do need to have some cash for emergencies. Forgive me if that's too simplistic, but your post makes it seem like you're not very finance-savvy.

no you can't. you should consult a financial planner.

You can't put $50k into a 401k in one year.

Are you rolling over from a previous account? Your post makes little sense. If you are talking about an annual contribution, you can put in $17,500 a year. Are you thinking that you would take money out to pay for rainy day things? The penalties are ridiculous. Are you thinking that $50k is all you will ever put into it.

401Ks are "set it and forget it". Never think of it as "now" money unless you are retired.

Get a rainy day fund and a longer term savings fund.

not sure of the exact #, but much higher than I could before I was a part-owner. plus I get another $10K+ safe harbor from the company.

Since all of that is pre-tax, and a pretty sizable number, would it affect how much you saved separately from your retirement accounts? i.e., I sort of think that if I have a $60K or so 401K contribution I don't need to worry so much about a rainy day fund - other than college savings for my kids.