Cutting back on retirement savings

[Mitch Vogatsky]

I have focused on saving for my retirement through my 401k for my first few years of work after college. I managed to save up $100k to invest and have decided that I will no longer contribute more than my employer match (4%). At an 8% return until age 59 (30+ years to go), even if I don’t contribute any more starting today, I will still have about $1.5 million saved. More than enough to live out the rest of my life “fat FI”. I would like to turn my focus to saving for today so I can become FI and last until age 59 when I can access that money.

My question is, is there any reason I should continue to invest towards my retirement accounts? Even though I would have enough money to live my life financially free after that point if I stopped. The only reasons I can think to continue to do so are (1) the tax benefits gained from investing into a traditional 401k, and (2) potentially using the 401k to fund FI before age 59 (through the Roth IRA conversion ladder).

To me, the tax benefits gained are not a reason to justify continuing to save more for retirement. The Roth IRA conversion ladder is. However, why not just start saving money in a personal brokerage and avoid the hassle of that strategy?

I’m looking for any thoughts and advice on these points!

[Randy Bloch]

FYI - $1.5m will not be nearly enough to fatfire 30 years from now with inflation.

Your thought process is solid.  I would take into consideration your effective tax rates.  If are or become a high W2 earner then the tax Savings might make it worth it.  For me, if my effective tax rate is over 30% I think it makes since.  There are ways to access your 401k before 59.5, like Roth conversion and rule 72t…. Plus I think u need more than $1.5m