Are you saving TOO MUCH for retirement?

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TOO MUCH for retirement?

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I hope this is my biggest problem.


If you save too much, you'll find a way to spend it in retirement.

It's funny... my income has doubled over the past year and I don't feel any richer.

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my income has doubled over the past year and I don't feel any richer.

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Same think the tongue and cheek article I posted a week back said... It was talking about why you should quit your job and do what makes you happy.

Talked about staying for the money and the increases, but as they come, your lifestyle just keeps adjusting and you spend more, not really saving it all. Whether you are making 40k or 70k, you'll find a way to get by and will realistically have the same overall amount in your pocket at the end of the day.

Well I just got married last month, so the wife's income is new income to me since I was already paying all the bills and such from my income. She brought with her just a few small bills and no debt, so I look at her paycheck as a raise.

Inevitably kids will come and that will require a good bit of money, but should still have "extra" to either invest or play with.

If you are saving 15-20% of gross income, including any employer match in the %, I wouldn't worry about it. If you had stated you wanted to retire at 40 it would be different. You are only young once, having some fun is important. Most of those polls you have to take with a grain of salt as most respondents aren't posting questions on personal finance/investing sites.

I'm currently saving about 22.5% (including company contributions) of my gross income.

She's saving 0%, but has a pension plan that will pay her at least 75% of her salary if she works 30 years, and an additional 2.5% for every year after that up to 100% after 40 years.

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I used to audit 401k plans at the company level and after looking at thousands of accounts I can assure you 99.9% of the workforce is not saving too much for retirement.

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At the company I work for, it is ASTONISHING the amount of people who don't even take advantage of the 401k match. Astonishing might be the wrong word, sad is probably more suitable.

It's really all relative IMO. Some people naturally don't spend much money and find it easy to save 20-30% of their income. Others will spend all of it no matter how much they make.

I believe it's about finding that sweet spot in the middle, where you're saving for the future, but you aren't sacrificing enjoying your life currently.

My cousin for example was so obsessed with saving for retirement right out of college, that he wouldn't even go out to dinner with his long standing gf (inevitable wife) for quite some time. He was so stressed about saving money it just seemed miserable.

I don't promote going out and buying a BMW as your first car, the biggest most expensive tv on the market, and a high fashion wardrobe every season. But you need to do things that you enjoy while you're in the prime of your life.

For me, material possessions are easy to stray away from. I don't really buy anything for myself. I don't really need anything. Most of my money goes to socializing, traveling, and having experiences. Those types of things are how you enjoy life IMO.

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Don't think this is possible unless you are eating ramen every night

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Oh its definitely possible. There's a difference between saving, being thrifty, and being fricking ridiculous.

As I have posted before, I worked too hard to get to where I am to not enjoy myself. I travel 80+% of the year so I live for free while on the road (and actually make money on per diem that is nontaxable).

So yes, when I am with friends, relaxing on a weekend, browsing Amazon or Ruelala from the hotel bed or bringing some chicka on a date, I will spend without hesitation. $100 date is basically what I made that week on per diem, so I still net out.

I know this is a unique situation, but it lets me relax financially. I save 11% (which is a greater percentage than my company actually matches) in the 401k before I even touch it and then save almost an entire paycheck each month after tax. The last thing I am doing is worrying about saving more money.

That is awesome. You found a great wife.