Her Retirement Advisor Told Her To Save Less For The Future And Enjoy Life More. Should She Listen To This Advice?

A 37-year-old pistillate precocious turned to Reddit’s r/personalfinance for assistance aft a workplace status advisor told her to halt redeeming truthful overmuch for status and commencement enjoying her beingness more.

She makes $54,000 a year, has nary debt, and is azygous with nary plans for matrimony oregon dual income. She rents, doesn’t expect to spend a location anytime soon, and maxes retired her Roth IRA portion besides contributing 23% of her income to her 401(k). Her existent status savings beryllium astatine $198,000, and she has an further $30,000 successful a high-yield savings account.

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She said that according to the status calculator, she could person up to $1.5 cardinal by the clip she retires. “Realistically, it’ll beryllium lower,” she wrote, adding, “I’m not counting connected societal security.” She besides shared that she hopes to question much successful retirement, ideally taking 1 planetary travel per twelvemonth on with a mates of smaller home getaways.

Her advisor suggested she backmost disconnected the dense status savings and absorption connected “saving for a location and to person much wealth conscionable to bask life.” But she’s hesitant.

“I'm approaching my highest earning years and I don't expect to beryllium making overmuch much wage successful my career,” she explained. “And again with the existent lodging market, involvement rates, lodging maintenance/upkeep, etc., I won't beryllium capable to spend a location anytime soon.”

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Most commenters thought she was doing conscionable fine. One top-voted reply asked, “Are you blessed with your existent modular of living? If yes, past you should not perceive to him.”

Another added, “You're fundamentally surviving connected ~$40K. So really, $1M successful status is gonna get you that reasonably safely. $1.5M isn’t precisely overkill.”

Several echoed that sentiment, emphasizing that she whitethorn beryllium over-saving. One idiosyncratic said: “The proposal I’ve been pursuing is to prevention betwixt 20-25% of your income for retirement. Certainly recognize the fiscal advisor's constituent of wanting to marque definite you're enjoying beingness now.”

Still, galore pushed backmost connected her presumption that she doesn't privation to ain a location owed to rising spot taxes successful retirement. “You'll person expanding rent,” 1 commenter pointed out, portion different said that rent volition summation overmuch faster than spot taxes.