The article discusses a parent's concerns about reducing retirement and mid-term savings contributions while the family prepares for a new baby. With a strong financial background, including maxing out contributions and a healthy emergency fund, the advice suggests it's reasonable to dial back on savings temporarily. The importance of maintaining some level of contribution, especially for employer matches, is emphasized. A flexible financial approach, alongside careful budgeting, can provide temporary relief without jeopardizing future savings goals.
If you've been maxing out your retirement savings and you have a healthy emergency fund, why not dial back and give yourselves some room now?
With six months of expenses saved, plus years of consistent retirement savings, you're already ahead of most people.
You still want to have a plan, though. How much will you scale back, and how much will your budget change?
You should still contribute enough to your 401(k) to get your full employer matchâyou don't want to leave 'free' money on the table.
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