3.1M Saved and Retiring in ’26—Is It Time to Slow Down?

A retirement account is meant to be the gift that keeps on giving. But sometimes it can be tempting to redirect funds away from the future and into the here and now. One Reddit member was facing this very situation, sharing in a subreddit entitled Chubby FIRE that he and his wife were considering lowering their 401(k) contributions at a time when they were about to need them more than ever – within a stone’s throw of retirement age.

It wasn’t as though they were going to splurge on impulse purchases, adding greater depth to the situation at hand. Instead, this individual was contemplating purchasing big-ticket items — like a vehicle, computer, fancy lawnmower, etc. — in one fell swoop that would last the couple for the long haul. This way, they could avoid having to do so later in life.

While this might seem like a practical option, doing so would cost this couple retirement contributions that are designed to grow their nest egg further. This Redditor wasn’t planning to eliminate his 401(k) contributions altogether but to scale them back.

While we recommend speaking with a financial advisor, we also want to provide some perspective. Basically, cutting back on retirement contributions to plan for needs that have yet to present themselves isn’t the best course of action, especially while there’s still income streams flowing. Let’s dive in.

Retirement Mechanics 

Our Redditor shared that his household’s combined annual income hovers at $300,000, which automatically catapults them into the 24% tax bracket (as of 2025) if they file jointly. Additionally he boasts an investment portfolio worth $3.1 million on top of real estate property worth a cool $2 million-$3 million with zero debt. At 59 and 57 years of age, he and his wife, respectively, have set a target retirement data of January 2026.  

While he understands the tax implications of pre-retirement spending, we’d like to point out that a traditional retirement savings account, such as an IRA or 401(k) plan, allows for deferring taxes, a perk that translates to lower taxable income and not having to pay ordinary taxes on the money until funds are withdrawn later. 

Considering this couple’s age in their late 50s, they are also entitled to catch-up contributions. This loophole represents additional money that they are allowed to direct into their retirement savings account beyond the traditional limit, giving them a greater chance to bolster their savings while ensuring that the income gets shielded from the loftiest of tax rates. (This is considering their contributions lower their taxable income as well as the fact that they are likely to drop to a lower tax bracket after retirement without the same high income).

Our couple is nearing the finish line of their careers. At the time of the posting, they were within one year of their target retirement date. With so much progress having been made on their retirement savings journey already, they might as well continue to make the utmost contributions to their retirement plan while they still can. There is still time for their real estate portfolio and stock market investments to grow, presenting yet another option from which they can divert funds to purchase big-ticket items like those desired.

It’s not as though they are facing an emergency or are short on funds, so why not? The risk is that inflation will drive the prices of these big-ticket items higher in the future. But if our soon-to-be retiree invests strategically, given their short-term retirement horizon, they could more than offset the cost of rising inflation while maximizing retirement contributions. 

Hello Heloc 

We mentioned that our Redditor is a homeowner. To satisfy the couple’s desire to spend on big appliances, we’d like to introduce a home equity line of credit, or HELOC. As the name suggests, a HELOC is a line of credit extended to homeowners based on the equity they have achieved in their property. Our Redditor is debt free, so we are safe to assume they own their home free and clear.

HELOCs are home-improvement friendly, meaning that our homeowners can use the credit line to make major purchases in a tax deductible way, only paying interest on the funds they access. The appliances that they intend to buy will improve the property and therefore qualifies for the tax deduction. The beauty of a HELOC is that the borrowers only need to access the funds they require to buy these items – no more and no less unless an emergency comes up, which they could use the funds for as well. 

It’s a completely different option and allows this couple to continue taking full advantage of retirement account contributions. When the time for retirement comes, they can access their savings to repay the HELOC, no questions asked. It’s a win-win for a financially stable couple who is on track for early retirement.

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