{"id":127306,"date":"2020-12-06T02:39:31","date_gmt":"2020-12-05T23:39:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/i-have-a-seven-figure-nest-egg-am-i-saving-too-much-for-retirement\/"},"modified":"2020-12-06T02:39:31","modified_gmt":"2020-12-05T23:39:31","slug":"i-have-a-seven-figure-nest-egg-am-i-saving-too-much-for-retirement","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/i-have-a-seven-figure-nest-egg-am-i-saving-too-much-for-retirement\/","title":{"rendered":"#\n  I have a seven-figure nest egg \u2014 am I saving too much for retirement?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df3f85d023\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df3f85d023\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/i-have-a-seven-figure-nest-egg-am-i-saving-too-much-for-retirement\/#A_big_pile_of_money_is_great_but_it_raises_questions\" >A big pile of money is great, but it raises questions<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/i-have-a-seven-figure-nest-egg-am-i-saving-too-much-for-retirement\/#Alessandra_Malito\" >Alessandra Malito<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  I have a seven-figure nest egg \u2014 am I saving too much for retirement?<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"A_big_pile_of_money_is_great_but_it_raises_questions\"><\/span>\n  A big pile of money is great, but it raises questions<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"B0D3A896-BAF4-11EA-8A2F-EA37A4E09CE0\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <em>Hello!<\/em><\/p>\n<p> <em>I recently had a conversation with a colleague about retirement and was told I\u2019m saving too much! My wife and I are both 57 and have been aggressive savers ever since my brother, an institutional retirement financial expert, told us to max out our savings when we were 25 years old. As a result, we have saved 25-30% of our income and invested aggressively over the years. We have a very healthy nest egg in the low- to mid-seven figures and no debt other than our home, which is very low interest and will be paid off before retirement. Our children have no student debt. My colleague says we are \u201cpostponing\u201d our lives and creating tax problems for when we retire. We have never felt like we have missed out on anything by saving and have lived a full life but is there such a thing as saving too much?<\/em><\/p>\n<div class=\"paywall\">\n       <em>Signed,<\/em><\/p>\n<p><em>Live for today or save for tomorrow?<\/em><\/p>\n<p>Dear Live for Today or Save for Tomorrow, <\/p>\n<p>I\u2019ll start with the answer you may not have expected: Yes, there is such a thing as saving too much money, financial advisers said. That doesn\u2019t necessarily mean you personally have saved too much, though. <\/p>\n<div data-layout=\"\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaVideo\n            \n            \n  article__inset\n        article__inset--type-InsetMediaVideo\n            article__inset--\n  \"><\/p>\n<figure class=\"media-object-video article__inset__video media-object-video--standard\">\n<div class=\"wsj-media-summary clearfix\">\n<div class=\"strap-container\">\n<h4 class=\"strap\" itemprop=\"description\">\n<\/h4><\/div>\n<\/p><\/div>\n<div class=\"video-container article__inset__video__player\" id=\"http:\/\/www.marketwatch.com\/news\/61AD778B-C50D-4EC0-A82F-2942D613BC47\" data-src=\"http:\/\/www.marketwatch.com\/news\/61AD778B-C50D-4EC0-A82F-2942D613BC47\" data-format=\"standard\" data-esplash=\"\" data-msplash=\"\" data-suppressheadline=\"\" data-verticalstill=\"\">\n  <\/div><figcaption class=\"wsj-article-caption article__inset__video__caption\">\n          80% of older Americans can&#8217;t afford to retire &#8211; COVID-19 isn&#8217;t helping<br \/>\n        <\/figcaption><\/figure>\n<\/div>\n<p>       Having an \u201coverfunded\u201d retirement isn\u2019t a bad problem to have, but it does raise the question: what are your goals for your finances, the present and your future, and are you meeting them? A big pile of money is great, but it\u2019s even better when you get to use it the way you want. There is no one right answer here, as the situation differs from person to person. <\/p>\n<p>There is a balance between saving for the future and living for today, and sometimes, people do overcompensate in one area. <\/p>\n<p>\u201cIt is important for each person to think about this and determine where their balancing point is,\u201d said Mark Beaver, partner and senior financial adviser at Keeler &amp; Nadler. There are scenarios where people do so much planning and saving for the future, and then they\u2019re robbed of that future for unforeseen and devastating reasons. Or they live it up in the moment and spend more than they save in the present, only to end up with little to no money to rely on in their old age, he said. <\/p>\n<p><strong>See:<\/strong>I\u2019m a 32-year-old stay-at-home mom, and my husband earns $150,000 a year. Will I ever be able to enjoy a retirement?<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Your colleague isn\u2019t wrong to suggest that some people do \u201cpostpone\u201d their lives in the name of aggressively saving, but that could only h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en if you\u2019re living so frugally today that you\u2019re not enjoying your life now. Some people save aggressively because they\u2019re afraid of running out of money later in life, said Christopher Woods, a financial adviser and founder of LifePoint Financial Group. \u201cThere are also others who are happy with their lifestyle and don\u2019t see how spending more will make them any happier,\u201d he said. \u201cAnd that\u2019s perfectly fine.\u201d <\/p>\n<p>But now for the good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>: In your particular situation, it doesn\u2019t appear that you\u2019ve saved \u201ctoo much,\u201d said Joel Cundick, a financial adviser at Savant Capital. \u201cIf this couple has never felt like they are missing out and have had a full life thus far while accumulating a seven-figure balance sheet, that is the textbook definition of financial success,\u201d he said. <\/p>\n<p>The balancing point, Beaver said, lies in how you feel about the present while you save for the future. \u201cIf it\u2019s keeping you from living the life you want right now because you\u2019re only looking at tomorrow, that is probably too much,\u201d he said. You should aim for financial security, but also put your money toward your values, which may include experiences, said Ashley Gragtmans, a behavioral financial adviser at Parsec Financial. \u201cIn <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>, I think it\u2019s hard to \u2018save too much,\u2019 but if you lack joy along the way, something needs to be re-evaluated,\u201d she said. You noted you have not had that problem. <\/p>\n<p>So, what can you do from here? <\/p>\n<p>Your colleague may be right about setting yourself up for hefty tax bills in the future. How much is owed will depend on many factors, including how much you withdraw in a given year and how you diversify the accounts you withdraw from. <\/p>\n<p>For example, you can use traditional retirement plans, which are funded with pretax dollars, as well as Roth accounts, which contain after-tax dollars. When it comes time to withdraw from those assets, the money from the traditional account will be taxed at ordinary income rates, while the latter will be a tax-free distribution. There are pros and cons to using these accounts though, so you have to see what is best for your situation. There are various alternatives and supplemental accounts as well to save money, such as taxable investment portfolios and life insurance. A financial adviser could help you avoid excessive tax burdens and strategize so that you\u2019re getting the most out of your money. <\/p>\n<p>Although you seem to have your nest egg in order, there are questions you can ask yourselves so that your retirement plan is well-rounded, said Nadine Burns, president and chief executive officer of A New Path Financial. Questions to consider include: do you have additional income to supplement your retirement, like a pension? When do you plan to claim <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security and how does that fit into your expected retirement age? (If you retire before you claim, you\u2019ll have to draw down some of those assets before you start receiving benefits.) Are there any health issues in the family, such as dementia, that may warrant long-term care planning? And what do you want to do with your retirement, so that the money you\u2019ve been saving is used well? <\/p>\n<p>Aside from planning accordingly for the rest of your years, if you intend to leave money to loved ones or charities, you should have a clear estate plan written up so that your wishes are met, Cundick said. Some advisers have seen their super-saver clients become \u201csuper-givers,\u201d like Leon LaBrecque, chief growth officer at Sequoia Financial Group. \u201cI love saving,\u201d he said. \u201cHowever, money is nothing but a piece of paper with a picture of a dead president on it until you get rid of it. You can save it for you or save it for others.\u201d Charitable giving can also lessen the burden of tax obligations. <\/p>\n<p><strong>Also see: <\/strong>All the tax-friendly ways retirees can donate to charity<\/p>\n<p>Having an estate plan ensures your hard-earned savings are being used the way you intended them to be used. However, you should consult with a financial professional, especially as rules can change. For example, the Secure Act passed in December eliminated the stretch IRA provision for inherited accounts, which could force loved ones to pay much more in taxes than you\u2019d like. <\/p>\n<p>But back to the present: Make sure to continue enjoying life now while you save and prepare for retirement, said Michael Simmons, director of financial planning at Transitions Wealth Management. \u201cAt some point, you may have the financial resources but lack the health or even the desire for things such as <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a>,\u201d he said. <\/p>\n<p>In the meantime, you should pat yourselves on the back, said Liz Gillette, a financial adviser at MainStreet Planning. <\/p>\n<p>\u201cFor most of us, investing versus spending is a competing priority that we work to manage. Living life in the now because life is uncertain but saving\/investing enough so we don\u2019t compromise our future selves,\u201d she said. \u201cAs long as that money can be used in ways that serves their values and priorities, I certainly wouldn\u2019t say they have saved \u2018too much.\u2019\u201d <\/p>\n<p><em>Letters are edited for length and style. <\/em><\/p>\n<p><strong>Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com.<\/strong><\/p>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetRelatedArticles\n          inline\n  article__inset\n        article__inset--type-InsetRelatedArticles\n          article__inset--inline\n  \"><\/p><\/div>\n<div data-layout=\"\n              inline\" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetCommentingPromo\n            \n            inline\n  article__inset\n        article__inset--type-InsetCommentingPromo\n            article__inset--inline\n  \"><\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Alessandra Malito\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Alessandra_Malito\"><\/span>Alessandra Malito<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7BB0D3A896-BAF4-11EA-8A2F-EA37A4E09CE0%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# I have a seven-figure nest egg \u2014 am I saving too much for retirement? &#8221; A big pile of money is great, but it raises questions Hello! I recently had a conversation with a colleague about retirement and was told I\u2019m saving too much! My wife and I are both 57 and have been&#8230;<\/p>\n","protected":false},"author":1,"featured_media":127307,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-127306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/127306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=127306"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/127306\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/127307"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=127306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=127306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=127306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}