A Reddit user from the r/HENRYfinance subreddit is contemplating the feasibility of halting their wife's 401(k) contributions as they aim for an early retirement in their 50s. However, experts suggest that despite feeling financially pressured, these contributions are vital for their financial health and long-term retirement goals. Cessation of these contributions could significantly hinder their progress toward early retirement, especially in light of persistent inflation and the associated cost of living increases. Continuing to contribute to a 401(k) can provide essential tax advantages as they navigate their retirement planning.
Halting 401(k) contributions could derail an early retirement in its tracks.
Choosing to contribute less to the 401(k) makes less sense if the couple seeks to retire early.
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