I'm 30 years old. I have about $90,000 in my 401K and another $20,000 in an IRA. Using a retirement calculator, if I contribute 10% of my paycheck to my 401K with company matching of 4%, I'm projected to have about $3.5 million in my 401K by age 65. Right now I only have about $6,000 in my bank account right now. My question is, am i saving too much? I'm 30, no kids, no wife, and I want to go on a trip of a lifetime with my girlfriend. Now is the time to have fun and enjoy life while you still can isn't it? I'm considering withdrawing my IRA funds, because I don't think I'll need them those additional funds in retirement with my projected 401K and they'd be better served living life NOW. Who knows if i'll even live until age 40? It feels a bit irresponsible of course, and I know there are short and long term penalties. Thoughts??
Responses (1)
I believe that saving for retirement is very important. However, I find that living a fulfilling live is more important. My suggestion to you is that you find a lesser, but still comfortable projected amount of money. As for your IRA funds, I would withdraw, then put some into your bank account, and then take the rest of the funds to have fun with. These are all just my opinions, so don't feel pressured to do exactly what I recommended.
Thank you eliteattackman, I 100% agree. I agree that living a fulfilling life is more important and I think although the penalties will be significant, withdrawing the IRA funds and using them to make life memories is the way to go.