I'm 46 and I have been maxing out my 401(k) for over 20 years, we've been maxing out back door Roth IRAs for probably 10 years, maxing out HSA for probably 5 years, contributing $1000 total a month between two separate 529s, and putting $1000 a month into a taxable brokerage account for years. HHI was 280K. My salary took a big hit in the Fall down to about $170K, so we had to cut the contributions to the taxable brokerage account down to $100 a month. It's been a massive struggle to stay in budget and I may have to cut my 401(k) contributions for the first time in 20 years. It breaks my heart even though my financial planner says I don't need to max my contributions to retire comfortably in a 9 years. I just don't like NOT maxing out my 401(k). It's just me but it really affects me.

Anonymous wrote:I don’t max out. Retirement is for blue collar workers. I don’t plan to retire. Rich people don’t retire, they continue work.
I save money for things that I need but not for retirement.

I know a few people with this mindset and find it delusional. There’s a decent chance your health will fail or there will be some sort of change in your industry. Also, a 401k is an opportunity to invest $19k pretax. It’s one of the few tax breaks that rich working people still receive. I really wouldn’t want to count on continuing to work in old age.

I'm 44 and max out now and have for the past few years, but before that I wasn't able to. I have been contributing to my TSP since I was 25 though, and I opened a Roth IRA in grad school and contributed to that steadily for the first ten years of my adult life so that helps. Now I'm at a point where I can max out my TSP contributions and add to the Roth again. When I turn 50 I plan to add in the catch-up contributions.

I'm also looking at a pension of at least $60k, so that helps immensely.

Anonymous wrote:I don’t max out. Retirement is for blue collar workers. I don’t plan to retire. Rich people don’t retire, they continue work.
I save money for things that I need but not for retirement.

This is interesting. I'm not a blue collar worker and I can't wait until I have enough money to retire. I'm 47 and hoping to be done by 57. But you point made me think of a few people. So there are financial advisors on TV like Suzy Orman or more locally Ric Edelman on WMAL on the weekends...why the hell don't they retire. Same with Mike Collins who is a estate planning attorney on WMAL on the weekends that does free seminars. He's older than dirt and probably have more money that all of us. Why doesn't he retire. I see all sort of old ass people in my office building, etc. I don't understand why they are still working. Why don't rich people retire?

I’m contributing to the 5% match plus $150/month into a Roth IRA. I maxed for one year (2016) but have done 10% and $200/month towards Roth for much of my career. I have also done a couple of TSP loans. I currently have 250% of my income in retirement, closer to 300% once my TSP loan at 36. I’m single parenting without child support but working on that. I’m not worried. I’ll up it again in a couple years and I have a pension. What does help me is I started at 23.

I don’t max out. Retirement is for blue collar workers. I don’t plan to retire. Rich people don’t retire, they continue work.
I save money for things that I need but not for retirement.

Anonymous wrote:

Anonymous wrote:We’re at around $28,000/year combined and trying to do more but just can’t. HHI is around $180K. It seems like everyone on this forum is maxing out and we are still catching up, but not quite. We try but it seems like something always gets in the way - medical emergency, home repairs, job transition. We do have an investment property that will generate income in retirement and has around $300k in equity now, so that counts, but I feel anxious about not maxing out when it seems the smartest thing to do.

Don't beat yourself up. $28k is good. Of course more is always better, but at least you're saving a lot more than most Americans. DCUM posters are the extreeeeeeeeeme minorities in the country. The loudest people on the money boards are of course the people with the most money, because they want to make sure everyone knows how much money they have. Make it a goal every single year to try to increase your retirement contributions by $1000 per year. Set reasonable goals for yourself and don't pay attention to, or compare yourself to others. You'll always feel 'behind' if you're constantly sizing yourself up to other people and trying to keep up with the Joneses. There's always someone else out there with more money.

And liars.

I'm the one guy on this site whose family has never made the median HHI for the area - currently making $80k at age 55 and doesn't have enough saved for retirement. Sure, I maxed out my retirement for a couple years before I got married and had kids. Sadly, I haven't put more than $10k into my retirement funds in the last 15 years. Life happens. Retirement, as defined by others, won't.

Sounds like you are doing fine.

No, we do not max out. We both get our full employer match (5%) and as much as we can after that. I think we're around 8% now. I have about 130% of my annual salary saved in retirement at 35, and my spouse has about 160%. We are not quite out of the day care years.

Anonymous wrote:Most people don't and most people don't have to

For the majority of the population a 1 million retirement account is plenty

anything over 3 million is ridiculous except for maybe the top 1%

So, OP is currently spending around $100,000 a year ($180k - @25% state & federal taxes - $24k savings), and they're going to be happy living on $45kish ($50k - taxes) in retirement? IF SS is still around when OP retires, you can add maybe another $15,000 per person (assuming they both work) after taxes. So maybe $60k and that's being generous. So, just a little more than half of their current income. Survivable, but not what I would call "plenty."

OP said after you posted this that there will be a small federal pension, too. If the pension is $40,000 or more, you could be right. However, you didn't know about the pension when you posted this.

I have been maxing out since I was 21 in 1999 making only $26,000. I have only worked for nonprofits so I do not have a crazy high income. I also had 70k in college debt at the time-unheard of them. I am 41. Maxing out is the best financial decision I have ever made. I also paid for my kids’ childcare costs. There is no excuse for not maxing out. I stopped eating meat for years (expensive). Think of it as you can’t afford not to max out. Over years it makes a huge difference.

Yes, we max out employer and put in what ever is allowed each year. Same income but only been that high for a few years.

OP here. I forgot to mention that DH is a fed, age 50 with 15 years of service now. He will get a pension, but not the sweet deal of yesteryear. And we haven’t always contributed $28k - this has gradually increased over time with some very lean years in there.

I always maxed out, even at my first job.

$28k is plenty - check one of those calculators to estimate how much you'll have in retirement.

I'm a single GS-13 fed and I contribute 10% to TSP (5% Roth and 5% Traditional), which amounts to around $10k/year, not counting agency contributions. Maxing out (or as close as possible to it) is my eventual goal after I get married next year and combine finances. HHI should be ~$180k then.