Here's an email I recently received from a reader:
I have a question to which I haven't been able to find an answer online. I'm currently 32, have about $25,000 in my retirement accounts, and contribute approximately 18 percent of my income to my employer-sponsored plan and Roth IRA. I'm wondering when, if ever, I can stop contributing to these plans. I've read articles to the effect that people who invest for 10-15 years early in their careers (and then stop) do just as good, if not better, with final balances as those who start at 35 or 40 and contribute for the remainder of their careers.
I'm just curious... what is that "tipping point" where my contributions aren't going to make a significant increase to my final retirement balance. Is there a way to easily calculate this or is this a better question for a financial planner?
What are your thoughts for him?