Hi, first post here. The question is when is it wise to cut back or altogether stop contributing to your 401k (or other traditional, post-60 retirement fund)? And by when I mean at what percentage of the total you expect to need to retire do you start to shift focus to savings that can be utilized, without penalty, at an earlier age?

There are a lot variables here--amount you spend per year, your current age, amount being contributed to "other" savings already, etc--so not sure if there's a specific formula, but I'd like to hear ideas on this one.

Ok, I'm going to modify this post and elaborate to make slightly more interesting and personal...

My current financial situation is a tad complicated: I'm currently embroiled in a lawsuit against a former employer that I've won and now my lawyer is just leaning on the courts to force payment. This ties up some of my cash flow, paying for said lawyer. The payout is set between $40-50k. The likelihood is 50/50. I expect a windfall of $90-120k in next year, likelihood very very high. I am paying off a big chunk of debt, largely due to a remodel that, based on the market and visitor reactions, will pan out. For all of this, I plan for the worst, but for the sake of this post, I'm going to be super optimistic and jump into the future one year.

In one year, I hope my situation is as follows:

Mid-30's, Income between $130-150k, $180k in retirement (equal parts Roth/IRA/401K), $30k in taxable investments, $90-120k in company stock, $150-200k in home equity. Ultimately hope to sell home and downgrade and pay cash, so considering all, looking at, conservatively $300k of investments with a goal of $700k to reach financial independence.

So back to original question, would you stop contributing to long-term retirement at mix of 200/500 retirement to taxable? 300/400? Or just go all in until the magic number is hit?

Thanks!