You have built an impressive financial foundation—nearly $4 million in savings and investments—but the decision to upsize your home while still funding three college educations and planning retirement in eight years is a complex one. The tension between enjoying a larger living space now and maintaining your aggressive savings trajectory is real and understandable. This article breaks down whether you can afford to stop saving for retirement and college, what the true costs of upsizing are, and explores alternative strategies like renovating your current home to achieve the space you desire without derailing your long-term financial plans.
Your Retirement Savings Are Likely Sufficient
Christopher Walsh, a financial adviser at Capital Choice Financial Group, offers a reassuring perspective: your retirement savings are probably on track, even if you stop contributing entirely. With $3.2 million currently invested and assuming a compounded annual return of around 9%, your retirement accounts could nearly double within eight years, potentially reaching $6 million or more by the time you retire. Even if you adopt a more conservative return expectation of 6% to 7% as you near retirement and shift toward fixed-income investments, your nest egg would still grow substantially.
Applying the 4% withdrawal rule in retirement, that could translate to an annual income of roughly $256,000, before accounting for Social Security benefits. Walsh notes that for most families, that level of income is outstanding and would also allow you to leave a meaningful legacy for your children. While you must factor in inflation and potential healthcare costs, the core message is clear: your retirement savings are likely in a strong position, and further contributions may not be necessary.
The Real Financial Risk: College Costs and Cash Flow
While your retirement fund appears robust, the college years present a more immediate challenge. Michael McSweeney, a financial adviser at Ascend Wealth Partners, cautions against underestimating the expense of higher education. Your $800,000 college fund is significantly ahead of the average 529 plan balance, which was just over $34,000 at the end of 2025. However, with three children close in age, you could face several years where college costs—tuition, housing, food, travel, and personal expenses—reach $50,000 to $100,000 annually, or more.
The danger, McSweeney explains, is the temptation to tap into your retirement accounts to cover unexpected expenses like off-campus housing, study abroad programs, or airfare to a distant university. While you would likely still retire comfortably, doing so changes the financial math and could reduce your cushion.
This is precisely why McSweeney advises caution about buying a larger home. “The question isn’t whether they can afford it,” he says. “It’s whether it makes sense to dramatically increase their housing costs for a home they already expect to sell in eight years.” A larger mortgage also brings higher property taxes, insurance, utility bills, maintenance, and furnishing expenses—costs that strain your monthly budget precisely when college bills arrive.
Consider Renovating Instead of Relocating
Given the financial pressure of upcoming college expenses, McSweeney recommends exploring renovations to your current home rather than moving. A home equity line of credit (HELOC) could provide the funds to remodel your kitchen, update bathrooms, finish a basement, or add usable living space. These improvements can make your existing home function better for a family with teenagers, and the monthly payment on a HELOC is typically far lower than the cost of upgrading to a more expensive property.
Renovating also preserves your ability to downsize in eight years. An updated home is easier to sell and can command a higher price, offsetting some of the capital gains tax you may face. Since you have lived in your starter home for many years, your capital gain may already be approaching the $500,000 tax-free exclusion for married couples. Staying put for another eight years means future appreciation could be taxed, but documenting qualified renovation costs will raise your home’s cost basis, reducing that future tax bill.
The Verdict: Proceed with Caution and Purpose
If you genuinely value living in a larger home during these final years with your children, you can likely afford to upsize—provided you accept that this is a lifestyle choice, not a financial investment. Factor in transaction costs, mortgage interest, property taxes, insurance, maintenance, moving expenses, and the opportunity cost of not investing that money. The total could easily run into hundreds of thousands of dollars over eight years. That is not necessarily wrong, but it is an expensive rental for temporary space.
On the other hand, a thoughtful renovation might provide the comfort and functionality you crave while keeping monthly expenses lower and preserving financial flexibility. McSweeney emphasizes that you have spent years making smart choices, including living modestly to build nearly $4 million in assets. Abandoning that strategy just a few years before retirement could be counterproductive.
Understand the True Cost of College
One of the hardest expenses to plan for is college, and your $800,000 fund is a significant advantage. That gives each child an average of $266,000, which is close to the published cost of four years at a private university, according to College Board data for 2025–2026. The average published cost of attendance—tuition, fees, housing, and food—was $60,920 per year at a private four-year institution. However, the net cost, after grants and scholarships, is much lower at $37,380 annually. At a public in-state university, the net cost drops to about $21,340 per year.
Few students pay the full published price. Your children may qualify for merit-based aid, even with your income, or they might choose a more affordable in-state school. However, it is wise to have surplus college savings, since your children might take a gap year, need more than four years to graduate, or pursue graduate degrees in fields like law or medicine. Those paths require additional funding.
Making the Final Decision
You have earned the right to enjoy your hard work, and moving to a larger home is a legitimate way to do so. However, weigh the financial stress against the lifestyle benefit. If you can make your current home work with a strategic renovation, you will likely enjoy these last few years with your children just as much, while keeping your monthly expenses lower and preserving more flexibility for unexpected costs. That approach positions you even more strongly for retirement. Alternatively, if you decide the bigger house is worth the expense, proceed with a clear budget that ensures you do not dip into your retirement accounts. Either way, you are in a fortunate position, and the most important step is to make a deliberate, informed choice that aligns with your values and goals.
