1979dreamer
Dryer sheet wannabe
- Joined
- Mar 21, 2012
- Messages
- 17
Hi everyone,
Long time reader, first time poster. I'm about to hit what I consider to be a major milestone, hence the motivation to come out of the trenches and say hello.
I'm 32 years old and work in technology. I've been very fortunate to see my income rise significantly since getting out of college, and especially over the last 4 years or so. As a result, I've been relatively successful at keeping my expenses fixed as my income has risen. My income currently sits at right around $145k/year, with about $20k of that coming from a side business I run and the rest from my dayj*b. My expenses generally run a little under $3k/month including my mortgage. I max out my 401k and Roth IRA, and the rest goes into taxable investments.
By the end of next month I expect to cross the $500k mark in total savings (not including home equity, of which there isn't much). The breakdown works out roughly to:
- $61,000 Roth IRA + Roth 401k
- $150,000 Traditional 401ks
- $278,000 Taxable accounts
Now to get to the point: Since my spending runs under $3k/month and I'm already maxing out 401ks and IRAs, I find myself saving another ~40-50k/year in taxable accounts. Mind you, this level of saving is a somewhat recent development for me, but it appears to be something I'll be able to continue going forward. I expect another significant raise some time this year, which will only solidify my ability to keep this up. So the question is: Am I overdoing this? I don't intend to call it quits for quite a while, as I haven't even determined what I'd do with my time. Should I be balancing things out a little more and not focusing so much on keeping my spending the same as my income rises? It seems at this rate that I might become so accustomed to saving that I'll never be able to let myself retire, so I'm not sure what the point of doing all of this is.
Long time reader, first time poster. I'm about to hit what I consider to be a major milestone, hence the motivation to come out of the trenches and say hello.
I'm 32 years old and work in technology. I've been very fortunate to see my income rise significantly since getting out of college, and especially over the last 4 years or so. As a result, I've been relatively successful at keeping my expenses fixed as my income has risen. My income currently sits at right around $145k/year, with about $20k of that coming from a side business I run and the rest from my dayj*b. My expenses generally run a little under $3k/month including my mortgage. I max out my 401k and Roth IRA, and the rest goes into taxable investments.
By the end of next month I expect to cross the $500k mark in total savings (not including home equity, of which there isn't much). The breakdown works out roughly to:
- $61,000 Roth IRA + Roth 401k
- $150,000 Traditional 401ks
- $278,000 Taxable accounts
Now to get to the point: Since my spending runs under $3k/month and I'm already maxing out 401ks and IRAs, I find myself saving another ~40-50k/year in taxable accounts. Mind you, this level of saving is a somewhat recent development for me, but it appears to be something I'll be able to continue going forward. I expect another significant raise some time this year, which will only solidify my ability to keep this up. So the question is: Am I overdoing this? I don't intend to call it quits for quite a while, as I haven't even determined what I'd do with my time. Should I be balancing things out a little more and not focusing so much on keeping my spending the same as my income rises? It seems at this rate that I might become so accustomed to saving that I'll never be able to let myself retire, so I'm not sure what the point of doing all of this is.
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