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The Retirement Conundrum: Near-Term vs. Long-Term Goals
03.03.08 | Money | 4 Comments | by Tom Valenti

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Everything I read tells me the same thing when it comes to saving for retirement: contribute to your 401(k) and start a Roth IRA.

I contribute to my 401(k) so that my employer-match is maximized, but that's it. I don't max out on the overall contributions, nor have I yet opened an IRA.

Many people would tell me I really should either max out the 401(k) and/or start funding a Roth. I totally understand why they'd say that; I realize the benefits of tax-free growth.

But the reality is, I have near-term goals that need addressing, namely purchasing a larger house, getting ready for a family, and saving up for a possible business venture.

Socking away a bunch of money for use when I'm 60 or beyond is the practical, conservative thing to do.

But what happens if I never reach that age? Or what if I do reach that age and do get to my money, yet I realize my "prime years" were spent living in a cramped house, working for someone else, and did not contain any luxuries?

Has it been worth it?

I'm not saying I'm not planning for a retirement, because I am with my 401(k) and other investments, including mutual funds and real estate.

I am planning to use those investments wisely and spread them out over my life. So I'm not so sure the bulk of my savings should go into formal retirement programs.

If anyone has any advice or has been in the same situation, I'd like to hear it.

Tom Valenti is a marketer and project manager who currently works for a financial institution in New Jersey. For more info, visit him at http://tomvalenti.com.

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