In 2026's high interest rate environment, the traditional advice to "always max your 401(k) first" deserves a closer look. With mortgage rates above 7% and the Tax Cuts and Jobs Act potentially expiring, the math between retirement contributions and mortgage paydown is much closer than most financial advisors want to admit.

• How to properly compare pre-tax 401(k) benefits with after-tax mortgage interest savings
• The impact of AMT on tech professionals' effective tax rates
• Why the freed-up cash flow from early mortgage payoff matters more than most analyses suggest
• Sequence of returns risk and early retirement considerations

• State tax implications and geographic arbitrage opportunities
• RSU vesting schedules and "tax timing chaos"
• Concentration risk from equity compensation
• The mega backdoor Roth strategy (when available)

• Why humans treat mortgage payments differently than investment contributions
• The behavioral benefits of "front-loaded gratification"
• Volatility fatigue for tech professionals
• The endowment effect and homeownership

Rather than a one-size-fits-all answer, Dr. Link provides a framework for making this decision:

1. Secure your 401(k) match first (it's free money)
2. Calculate your effective tax rate including AMT implications
3. Compare that rate to your mortgage rate
4. Consider your career stage and retirement timeline
5. Factor in your psychology around debt and risk

• In 2026's rate environment, mortgage paydown can be competitive with 401(k) contributions
• Tech professionals face unique complications (AMT, RSUs, concentration risk)
• The decision isn't permanent—you can adjust as rates and tax policy change
• Psychology and personal circumstances matter as much as pure mathematics
• Career flexibility and peace of mind have real financial value

Review your last tax return to calculate your actual marginal tax rate, including state taxes and any AMT implications. Compare this to your current mortgage rate to see how close the math really is for your situation.

• Fireweed Capital - Wealth planning for tech professionals
• Schedule a consultation if you'd like personalized advice