Feels almost like a joke to offer advice on minor financial-planning tweaks while discussing AI timelines… but for what it’s worth, if you are saving up to purchase a house in the next few years, know that first-time homebuyers can withdraw money from traditional 401k / IRA accounts without paying the usual 10% early-withdrawal penalty. (Some related discussion here: https://www.madfientist.com/how-to-access-retirement-funds-early/)
And it seems to me like a Roth account should be strictly better than a taxable savings account even if you 100% expect the world to end by 2030? You pay the same tax up front either way, plus you can still withdraw the money any time, but savings in a Roth account doesn’t face any capital gains taxes. (Unless the investment options you get through your workplace plan are restrictive enough that you’d rather pay the capital gains taxes in exchange for greater investment choice.)
Of course it makes sense to save less for the future overall, and spend more in the present day, when the prospect of living a long and healthy life seems less likely. If that is what you meant, then that makes sense. (Personally, I also feel torn about having children just like you described.)
Feels almost like a joke to offer advice on minor financial-planning tweaks while discussing AI timelines… but for what it’s worth, if you are saving up to purchase a house in the next few years, know that first-time homebuyers can withdraw money from traditional 401k / IRA accounts without paying the usual 10% early-withdrawal penalty. (Some related discussion here: https://www.madfientist.com/how-to-access-retirement-funds-early/)
And it seems to me like a Roth account should be strictly better than a taxable savings account even if you 100% expect the world to end by 2030? You pay the same tax up front either way, plus you can still withdraw the money any time, but savings in a Roth account doesn’t face any capital gains taxes. (Unless the investment options you get through your workplace plan are restrictive enough that you’d rather pay the capital gains taxes in exchange for greater investment choice.)
Of course it makes sense to save less for the future overall, and spend more in the present day, when the prospect of living a long and healthy life seems less likely. If that is what you meant, then that makes sense. (Personally, I also feel torn about having children just like you described.)
Only up to $10k, though.