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SweetPotatoGut t1_iy6d8px wrote

I think that chart forgets about 401ks without an employer match. It can’t possibly be suggesting people forgo a 401k.

At some point, it may make sense to reduce your tax deferred retirement contributions in favor of saving for a house, but I wouldn’t think it often makes sense to forgo retirement contributions all together. It’s really important to accumulate money in those account early in your career.

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badboyzpwns OP t1_iy6fiv8 wrote

Ah I see! so the ideal approach would be to make sure to get full benefits of 401k matching, than you can forget about the rest of IRA/401K contributions for the time being and save aggresivley for downpayment?

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SweetPotatoGut t1_iy6gy08 wrote

It will depend on your situation. I personally still don’t love that and would advise people to reduce, rather than stop, their tax deferred contributions. Not only because of its effect on your retirement, but also because you’ll pay more in taxes since you won’t be reducing your agi w tax deferred contributions.

But again, it will vary by person/situation.

I feel for you. I’m fortunate to make a lot of money but I have student loans and live in a HCOL area. It’s very hard to save for a home considering how expensive r they are and the rate you’ll pay.

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badboyzpwns OP t1_iy6lvbd wrote

Yes! the chart actualy did not say to stop contribution. but to reduce it to 15%. I am still figuring out why 15% is enough for retirement though haha.

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Thank you for your insight regardless! I can relate haha, best of luck!!

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