Nice looking bike, (even with the honking rear fender
) forgive the sarcasm. Cut 3 or 4 inches at a time. Look at it. Make a plastic or cardboard mock up to visualize. My perspective is the tail light should be much less obtrusive. My 2 cents. Not my monkey, not my circus. Hey, did I say, nice looking bike?
I am really sorry for the comments above. Your bike is beautiful and do not change a thing. Build another and make the fender 3 inches shorter and see which you like best.