Continue to Save/Invest or Divert future 401K/IRA to other expenses

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Topic Author
continuetosave?
Posts: 2
Joined: Tue Oct 29, 2024 2:51 pm

Continue to Save/Invest or Divert future 401K/IRA to other expenses

Post by continuetosave? »

Good Afternoon Bogleheads

I am seeking feedback from the community regarding if it may make sense to stop contributing to our 401Ks/IRAs, allowing our current savings to continue within the market (for a foreseeable 18 years or more), and use future 401k/IRA contributions for other expenses like paying off a parcel of land ($234K @ 4.49%) attached to our current property and accelerate home improvements...based on the current and potential future income outlined below....this is vice continuing to save more and potentially having a larger sum down the road but not able to enjoy fully?

Background:
DH Age:47
DW Age:51

Income:
Mil Pension: ~$50K/yr
VA Disability ~$40K/yr
GS pay ~$198K/yr
GS pay ~ $168K/yr

One child in 2nd year of college, other to start college in fall 2026 - each has 2 years GI bill and ~$58K in 529

Current retirement savings (mix of Roth and Traditional) ~$2M

Potential future Income:
FERS retirement x 2
DH 18 more years at ~$50K/yr
DW 12 more years at ~35K/yr

Social Security at age 67:
DH: ~$44K/year
DW: ~$43K/year

Thank you for your review and thoughts.
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FiveK
Posts: 16952
Joined: Sun Mar 16, 2014 2:43 pm

Re: Continue to Save/Invest or Divert future 401K/IRA to other expenses

Post by FiveK »

continuetosave?, welcome to the forum.
continuetosave? wrote: Tue Oct 29, 2024 3:15 pm ...allowing our current savings to continue within the market (for a foreseeable 18 years or more)
Or for 8 years or less? In other words, if you didn't have to work, would you continue to do so?
...and use future 401k/IRA contributions for other expenses like paying off a parcel of land ($234K @ 4.49%)
See Investment Order for some thoughts on that.
...accelerate home improvements...
Might be easier to do that (depending on how extensive) after retirement.
...this is vice continuing to save more and potentially having a larger sum down the road but not able to enjoy fully?
That gets back to how long will you choose to work?
Topic Author
continuetosave?
Posts: 2
Joined: Tue Oct 29, 2024 2:51 pm

Re: Continue to Save/Invest or Divert future 401K/IRA to other expenses

Post by continuetosave? »

Thank you FiveK
Or for 8 years or less? In other words, if you didn't have to work, would you continue to do so?
Yes - at this point in time I enjoy the work.
]See Investment Order for some thoughts on that.
Thank you for the link - which suggests the most appropriate item would be to pay off the land as fast as possible while maintaining maxing out 401k/IRA. What I am struggling with is whether or not it makes sense to allow current savings to continue to grow on their own and divert future contributions to other items (other than debt, which the land is the only debt) under the assumption of continuing to work and earn income over the next 19 years.
...accelerate home improvements...Might be easier to do that (depending on how extensive) after retirement.
True - but my current point of view is that 18 years from now puts us in the mid 60 years of age range - thus less time potentially to enjoy any improvements.
...this is vice continuing to save more and potentially having a larger sum down the road but not able to enjoy fully?....That gets back to how long will you choose to work?
As of today - 18 more years, but who knows what the future may bring....wondering if others have intentionally made the trade off of spending more today on non-essentials for a potentially lesser nest egg in the future and what was taken into consideration for such a decision?

r/
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