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Updated over 3 years ago,

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10
Posts
1
Votes
Mitch Vogatsky
  • Buffalo, NY
1
Votes |
10
Posts

Cutting back on 401k to focus on saving

Mitch Vogatsky
  • Buffalo, NY
Posted

I’m looking to hear some thoughts on cutting back on my 401k in order to put more money towards my savings rate and invest it in real estate and other areas where it is accessible to me. I currently max out my 401k with an 8% match from my employer. My plan is to cut back once I reach $100k (end of this year). I’m in my mid-twenties. I figure if I continue to put in about 4% (with this I’ll still get the 8% match) for the next 5-10 years while I try to reach FI, I’ll have plenty of money compounded by age 59.5 to last the rest of my life. By putting the rest of that monthly money into a brokerage account or something like real estate, I can start to focus on the money I need to last me from ~30 Years old to 60. I know there are some potential cons here with paying more taxes now, etc. Are there any other considerations I should take into account for this method?