When I read 11 Retirement Saving Tips for Twentysomethings (& Older Folks Too) over at Len Penzo, I realized that Mr. BFS and I are not impressing ourselves now as much as we did in our 20’s. We were 20-somethings that were amazingly proud of our grasp of the future. But now that we are actually content with our jobs – the online business and our hobby jobs – we stopped counting down the days until retirement.
My View of Our Retirement Savings
I’m very happy with my 20-something self and a little disappointed with my early-30′s self. I started my first “real” job at 22 – one month after I graduated from college and 3 weeks after I got married. I vaulted into my 401k as soon as they allowed it after 90 days, putting in 6% to get their maximum matching. When I was 25, I opened a Roth IRA and have been maxing it out every year since then. At 27, I convinced my hubby to open and max out a Roth IRA annually too.
But now that we are both self-employed and happy, we still only max out our Roth IRA’s and make a few stock investments every year. At age 29-30, we threw the majority of our extra cash into paying off our rent house and putting 20% down on our long-term home. I consider our rental income as a reward for those moves, but we don’t put it all towards retirement.
Changes? Probably Not.
We should probably be throwing more into a SEP IRA or something…we just have too large of a monthly nut plus other savings goals to tackle anything else right now without giving up something…and our priorities aren’t geared towards opening another retirement account. That means, in my opinion, we are doing the bare minimum to fund our retirement. Yet I am happier now than when we felt like we had retirement by the horns.
Contentment is an odd drug – I still strive to stay busy and grow my side hustles, but early retirement isn’t the end all, be all for us anymore.
How do you save for retirement? Do you feel like you were great at it in your 20’s? Or was there a missed opportunity? And how does your career contentment affect your retirement savings overall?