Should You Pay Off Your Mortgage Before You Retire? (moving, spouse, cousin)
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Lets see I could have paid for the house and not taken a $330 mortgage. I guess that would have been "Peace of Mind".
Instead in less than 10 years, I am ahead by $200K. In addition that money keeps compounding and my investments make way more than the cost of the mortgage. Over the 30 years of the mortgage, I would be ahead by about $1 million. Instead I will probably start to spend that money in another few years. Now that is Peace of Mind.
Lets see I could have paid for the house and not taken a $330 mortgage. I guess that would have been "Peace of Mind".
Instead in less than 10 years, I am ahead by $200K. In addition that money keeps compounding and my investments make way more than the cost of the mortgage. Over the 30 years of the mortgage, I would be ahead by about $1 million. Instead I will probably start to spend that money in another few years. Now that is Peace of Mind.
Yeah you played the odds and won. You may continue to win as long as the market and other investments continue to pay off at a higher rate than interest on your mortgage. However, the market may crash for a sustained period of time right after you retire and you'll still be paying your mortgage amidst a decreasing portfolio.
I do understand in all likelihood you'll be better off following your plan but it has a risk associated with it that others may not want or need to deal with.
Played the odds? Markets are up 2/3s of the time and down only 1/3. Those are petty good odds. Plus when down you may be down a point or two yet when up you can be up a lot
Played the odds? Markets are up 2/3s of the time and down only 1/3. Those are petty good odds. Plus when down you may be down a point or two yet when up you can be up a lot
Yep those are good odds, like I said, your odds are good following that plan of not paying off your mortgage when you could and investing it provided one is a decent investor and we don't go into a prolonged market crash. Without a mortgage, we're still up $80K the last 2 weeks.
I suppose except the odds are overwhelmingly in my favor, actually about 98% of the time. And if investments tank, as I mentioned before, taking a mortgage and investing the money should not be a get rich quick scheme. You need to look more long term, 5 or 10 years or longer.
Now if we get hit by a giant meteor, all bets are off....
I suppose except the odds are overwhelmingly in my favor, actually about 98% of the time. And if investments tank, as I mentioned before, taking a mortgage and investing the money should not be a get rich quick scheme. You need to look more long term, 5 or 10 years or longer.
Now if we get hit by a giant meteor, all bets are off....
Said everyone before the 1929 market crash....easy to be cocky right now with the market at an all-time high. My brother follows this logic and says he would not think of having less than $3M borrowed and leveraging it....he'll probably wind up much wealthier than me and good for him, he has the stomach for the risk and never wants to retire, just build massive wealth. He owns about 50 houses, 4 plexes and office building and has to work tirelessly to keep everything up and he doesn't really need the money.
The Fed has been pumping money into the stock market since Jan 2020.
$12 trillion dollars as of June. They said they are going to start easing off.
It was an artificial high these past 2 years held up by the Fed.
I'm paying off my mortgage now as the market is up and seems like a great time to TP. It's either than or I buy a brand new Lambo convertible on top of my existing Corvette convertible.
Yep those are good odds, like I said, your odds are good following that plan of not paying off your mortgage when you could and investing it provided one is a decent investor and we don't go into a prolonged market crash. Without a mortgage, we're still up $80K the last 2 weeks.
Did you choose to have a mortgage in retirement?
I own no real estate in retirement.
But I did borrow some money to buy a real estate business when I did own real estate
The Fed has been pumping money into the stock market since Jan 2020.
$12 trillion dollars as of June. They said they are going to start easing off.
It was an artificial high these past 2 years held up by the Fed.
Just FYI...
Corporate earnings were at records that’s why …along with the fact that the number of stocks were once over 7000 and today they are about 3800
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