Pay Off Mortgage?

[IVE GOTTA PACKAGE 4U]

Nothing if he doesn't need to take it out.

There's really no reason to pay it off now or in 3 years. The market typically recovers from a recession within a year.

He can mitigate sequence of withdrawal risk with something as simple as a CD ladder while he keeps the vast majority of his retirement money in higher return investments.

Like I said there's nothing like peace of mind

No matter what happens you know where you're at

 

[MrFedEx]

Should we pay off our mortgage before retiring? My wife is retiring fully by August. I’ll keep working another couple of years or so, depending on how awful Express gets.

Payoff balance: $116,700
Monthly payment: $1,635 (increases periodically)

Current retirement funds: approx. $1-million, not including Social Security.

It's always a bad idea to use your retirement to pay-off debts. $1M isn't very much these days. Talk to an accountant and make a plan. Taking SS at 62 is another bad idea.

 

[IVE GOTTA PACKAGE 4U]

It's always a bad idea to use your retirement to pay-off debts. $1M isn't very much these days. Talk to an accountant and make a plan. Taking SS at 62 is another bad idea.

Age 62 may or may not be a good idea

The break even point is 15 plus years

 

[Nolimitz]

Age 62 may or may not be a good idea

The break even point is 15 plus years

Agreed my wife retired at 63.5 her mom just passed at 97

 

[IVE GOTTA PACKAGE 4U]

Agreed my wife retired at 63.5 her mom just passed at 97

Nobody knows how much time is left on their clock
If we did it'll make decisions a lot easier

 

[Just A UPS Guy]

It's always a bad idea to use your retirement to pay-off debts. $1M isn't very much these days. Talk to an accountant and make a plan. Taking SS at 62 is another bad idea.

Taking SS at 62 is the best idea if you don't need it. Invest it and make money on your money, start taking out the difference at a later time, it's easy turn it into far more than you'd collect by waiting.

 

[IVE GOTTA PACKAGE 4U]

Taking SS at 62 is the best idea if you don't need it. Invest it and make money on your money, start taking out the difference at a later time, it's easy turn it into far more than you'd collect by waiting.

The other theory that I heard that intrigued me was
Take it early and let your 401k and ira is grow because your social security cannot be inherited by your children

 

[Just A UPS Guy]

The other theory that I heard that intrigued me was
Take it early and let your 401k and ira is grow because your social security cannot be inherited by your children

Yeah, kinda the same theory really as long as you're still MAKING money somewhere and not operating at a net loss.

 

[IVE GOTTA PACKAGE 4U]

Yeah, kinda the same theory really as long as you're still MAKING money somewhere and not operating at a net loss.

Like I said before there's no magic answer

 

[MrFedEx]

Age 62 may or may not be a good idea

The break even point is 15 plus years

If you take it at 62, you're taxed substantially if you decide to keep on working.

 

[MrFedEx]

Like I said before there's no magic answer

Nope. Everyone and every situation are different.

 

[Fred's Myth]

Interest rate is good: 2.99 percent

Why would you prepay your 2.99% loan (to save interest) when that money could easily earn over 5% in a CD?

 

[pkgdriver]

Like I said before there's no magic answer

 

[MassWineGuy]

Why would you prepay your 2.99% loan (to save interest) when that money could easily earn over 5% in a CD?

Good point.

CD ladder?

I’m 69, so taking SS at 70 plus is probably a given.

 

[Cheesypurpletees]

Good point.

CD ladder?

I’m 69, so taking SS at 70 plus is probably a given.

If you’re almost 70 why keep working at FedEx? You’ll have max ss, 4 to 4.5% withdrawal rate on your 401k and I’m assuming your original or portable FedEx pension to draw from.
Unless your balls deep in debt and pulled an Al Pacino and recently knocked up a 30 year old, I’d imagine you’ve made it

 

[burrheadd]

If you take it at 62, you're taxed substantially if you decide to keep on working.

Only losers or those that didn’t plan work past 62 unless it’s for fun money

 

[MassWineGuy]

Ah,the collective wisdom here.

Maybe I’m dedicated to delivering on the Purple Promise. Or bored.

 

[IVE GOTTA PACKAGE 4U]

Ah,the collective wisdom here.

Maybe I’m dedicated to delivering on the Purple Promise. Or bored.

Don't listen to any of us do what's best for you my friend

 

[MassWineGuy]

I feel strongly that I should consult with a fee-only financial planner. Depending on the fee.

 

[Up In Smoke]

What happens if he's all invested in stocks in the market goes down 35%?

If he has a million dollars in his 401k he could take a 3% withdrawal right now, one in January 2024 and one in January of 2025 and probably have his house paid off and his funds would still have the opportunity to grow

But I do agree with you at 2.99%. there's no hurry to pay off the debt

I can only imagine the value of his home increased by 50% or more over the last 4 years also. Timing dictates most big decisions.