Anonymous wrote:This idea of maxing out your 401k is ridiculous. If you are making 500k a year, maxing out the 401k means you are saving 3.8% of your salary in your 401k. Despite saving 19k a year, that is likely no where near enough and they will need other retirement investments. If you have a combined HHI of 180k, putting 38k into the 401k would be 21%, which is very good.

Currently the OP is putting 15% (28/180) which is probably pretty close to what they will need depending on their other expenses and past history and retirement plans. The OP also has a pension and maybe has an employer match. This would make 28k a very nice savings rate and maxing out way too much.

Some of this depends on when OP wants to retire and what their other savings are. If OP wants to retire a little early OP could do roth conversions from the TSP to fill up the lower marginal tax buckets and get tax free growth on that money.

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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?

Exactly. Warren Buffett is 88 yo and he is still working. Our president is 72 and still working. Many members of congress are over 70 and don’t want to retire.
The poor and the middle class are the ones who are obsessed about retiring from work.

Ahhh....Buffett, Trump, and most all members of congress are loaded with $$$. They work because they WANT TO not because they HAVE TO. There are no financial hooks in their backs. It is very different when once can work for fun, keep busy, or stay mentally and physically alert, than to keep food on the table be able to take care of one's health.

That’s why I said that retirement is for poor and middle class workers.

And you think an UMC lawyer = Buffett and Trump??

No but I think a good UMC lawyer should have built enough wealth and an ability to continue to generate income when he/she is old.
If they are worrying about maxing out retirement, then they are just simple worker bees like most poor and middle class folks.

LOL. You’re funny. Unless you make partner at a big name firm, most dual income attorney families are making 500-700k which goes almost entirely to a mortgage on a nice but nothing crazy house, private schools, nanny, UMC lifestyle etc. They are rarely creating such significant wealth that they don’t have to concern themselves with a 401k!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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 think it's three reasons

1. Rich people who worked hard for it have found success or a spot that fits them so they like it and want to continue to do it. It may be the thing that they like most and you like things you are good at

2. They sometimes realize that they are lucky and their kids might not be as lucky so they are thinking a few more years could make a huge difference for their family down the line somewhere

3. If you are good at something your company will likely pay you to be around and you are likely not grinding away as hard at 65 as you were at 45 AND you are making more money on top of it, it's a lot to walk away from.

Not to mention rich people aren't grinding away producing TPS reports like many of the rest of are. Their work is probably much more interesting than what us schmoes are doing.

Seriously. If I'm still writing press releases and editing annual reports 30 years from now - I mean jesus. I would still like to be writing fiction - but that is my side gig. More like a low-paid hobby than a job.

This idea of maxing out your 401k is ridiculous. If you are making 500k a year, maxing out the 401k means you are saving 3.8% of your salary in your 401k. Despite saving 19k a year, that is likely no where near enough and they will need other retirement investments. If you have a combined HHI of 180k, putting 38k into the 401k would be 21%, which is very good.

Currently the OP is putting 15% (28/180) which is probably pretty close to what they will need depending on their other expenses and past history and retirement plans. The OP also has a pension and maybe has an employer match. This would make 28k a very nice savings rate and maxing out way too much.

Anonymous wrote:

Anonymous wrote:

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 think it's three reasons

1. Rich people who worked hard for it have found success or a spot that fits them so they like it and want to continue to do it. It may be the thing that they like most and you like things you are good at

2. They sometimes realize that they are lucky and their kids might not be as lucky so they are thinking a few more years could make a huge difference for their family down the line somewhere

3. If you are good at something your company will likely pay you to be around and you are likely not grinding away as hard at 65 as you were at 45 AND you are making more money on top of it, it's a lot to walk away from.

Not to mention rich people aren't grinding away producing TPS reports like many of the rest of are. Their work is probably much more interesting than what us schmoes are doing.

Anonymous wrote:

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 think it's three reasons

1. Rich people who worked hard for it have found success or a spot that fits them so they like it and want to continue to do it. It may be the thing that they like most and you like things you are good at

2. They sometimes realize that they are lucky and their kids might not be as lucky so they are thinking a few more years could make a huge difference for their family down the line somewhere

3. If you are good at something your company will likely pay you to be around and you are likely not grinding away as hard at 65 as you were at 45 AND you are making more money on top of it, it's a lot to walk away from.

We do. It helps that it is tax deferred. I assume most people who make enough have that same motivation.

Parents paid for college and graduated into Wall Street type of job. Maxed out every year and transitioned to places with good match / contribution (10%), have $450K between 401k Roth traditional and HSA at 30 as an individual (wife has a little bit too).

The thing that amazes me is I graduated with a bunch of similarly privileged and saavy people, many of whom had no debt and $100K+ starting compensation, yet few took full advantage of that and maxed out from the beginning. I would never hate on someone with student loans or a lower lying job for not maxing out, but if you are lucky enough to be able to, it’s a crime to not take advamtage of it. The most common reason is “I’m 25, 60 is so far away” but that’s the whole point. You have so many more years to compound.

It’s so powerful to start early (if you can).

I guess I'm in the minority having put in the IRS max almost every year since I started working (I cut back the first few years after I took a massive pay cut to join the government). 19 years of work, $700k balance. I could do this because I had a high salary to start, paid off my loans fast, have been continuously employed, never had a health crisis, always lived below my means, had kids late (now our HHI is high enough to keep maxing despite kids).

I'm a teacher, so my situation is a little different. In my state, my district puts 9% of my salary into the teacher's retirement system. Teachers also put 9% into the retirement system (this is automatic and mandated). But, then my spouse and I both put another 5K a year into our IRA accounts, as a supplement. We save more now in case the pension fund ends up bankrupting the state, which it might. We also save more now so that if the pension fund stays around as is, that I can retire earlier rather than later.
Essentially, my teacher husband and I save (along with the district's portion) about 20% of our income. We'd like to save more, but we can't seem to figure out how.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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?

Exactly. Warren Buffett is 88 yo and he is still working. Our president is 72 and still working. Many members of congress are over 70 and don’t want to retire.
The poor and the middle class are the ones who are obsessed about retiring from work.

Ahhh....Buffett, Trump, and most all members of congress are loaded with $$$. They work because they WANT TO not because they HAVE TO. There are no financial hooks in their backs. It is very different when once can work for fun, keep busy, or stay mentally and physically alert, than to keep food on the table be able to take care of one's health.

That’s why I said that retirement is for poor and middle class workers.

And you think an UMC lawyer = Buffett and Trump??

No but I think a good UMC lawyer should have built enough wealth and an ability to continue to generate income when he/she is old.
If they are worrying about maxing out retirement, then they are just simple worker bees like most poor and middle class folks.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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?

Exactly. Warren Buffett is 88 yo and he is still working. Our president is 72 and still working. Many members of congress are over 70 and don’t want to retire.
The poor and the middle class are the ones who are obsessed about retiring from work.

Ahhh....Buffett, Trump, and most all members of congress are loaded with $$$. They work because they WANT TO not because they HAVE TO. There are no financial hooks in their backs. It is very different when once can work for fun, keep busy, or stay mentally and physically alert, than to keep food on the table be able to take care of one's health.

That’s why I said that retirement is for poor and middle class workers.

And you think an UMC lawyer = Buffett and Trump??

Ummm hell no.

I put in 7% with a 7% match. DH puts in about 12.5% with a 3.5% match. So we're putting away about 15% of each salary. I can't imagine taking, like $17K? off the top. Together, we're just above $100K.

Anonymous wrote:

Anonymous wrote:

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?

Exactly. Warren Buffett is 88 yo and he is still working. Our president is 72 and still working. Many members of congress are over 70 and don’t want to retire.
The poor and the middle class are the ones who are obsessed about retiring from work.

The rich who keep working do so because they make millions and billions more for the same hours compared to the Average Joe. I'd be a lot more motivated to keep collecting a million dollar paycheck versus $100,000.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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?

Exactly. Warren Buffett is 88 yo and he is still working. Our president is 72 and still working. Many members of congress are over 70 and don’t want to retire.
The poor and the middle class are the ones who are obsessed about retiring from work.

Ahhh....Buffett, Trump, and most all members of congress are loaded with $$$. They work because they WANT TO not because they HAVE TO. There are no financial hooks in their backs. It is very different when once can work for fun, keep busy, or stay mentally and physically alert, than to keep food on the table be able to take care of one's health.

That’s why I said that retirement is for poor and middle class workers.