Assuming I had my mortgage paid off, I would have enough in my investment portfolio to cover my basic annual expenses, using 4 percent as a safe withdrawal rate.
I could possibly FIRE sometime within 2 to 4 years. The pressure and conditions of my job continue to deteriorate. I have been employed there for about six and one-half years. There is a good likelihood that my position will be relocated to another part of the country. If this happens, I would have to re-apply for my job, and if offered employment, I would be taking a 10-15 percent salary reduction. I am not interested in pursuing this path if the position is relocated.
If I am laid off I would be eligible for severance and unemployment compensation. Although I have looked, comparable jobs in this region are available, potential employers are not knocking down my door.
My thought was that, in order to make the next 12-24 months tolerable, I would lock into any gains from my investment portfolio on a month to month basis and place the gain into an account earmarked for the early payment of my mortgage. So for example, if my investment portfolio value was 200,000 in September and rose to 205,000 in October, I would lock the 5,000 gain and add it to my mortgage prepayment account. If my investment portfolio went below 200,000 I would wait until it went above 200,000 in a month to lock in the gain again.
I have an emergency fund and I obtained a home equity line of credit.
I have a low interest rate on my mortgage, like 3.4% I believe. And I do not think there is a prepayment penalty on this mortgage.
I think this might psychologically make a difficult work situation slightly more tolerable. It would help me to see in a timely way how I am progressing toward achieving a goal. The only drawback I can see is that if I waited to lock into the investment portfolio gains until after the job ended, I might pay less capital gains tax on the investment portfolio gains because my annual income would be less.
What do you think about this plan? Does it sound like a good idea?
I could possibly FIRE sometime within 2 to 4 years. The pressure and conditions of my job continue to deteriorate. I have been employed there for about six and one-half years. There is a good likelihood that my position will be relocated to another part of the country. If this happens, I would have to re-apply for my job, and if offered employment, I would be taking a 10-15 percent salary reduction. I am not interested in pursuing this path if the position is relocated.
If I am laid off I would be eligible for severance and unemployment compensation. Although I have looked, comparable jobs in this region are available, potential employers are not knocking down my door.
My thought was that, in order to make the next 12-24 months tolerable, I would lock into any gains from my investment portfolio on a month to month basis and place the gain into an account earmarked for the early payment of my mortgage. So for example, if my investment portfolio value was 200,000 in September and rose to 205,000 in October, I would lock the 5,000 gain and add it to my mortgage prepayment account. If my investment portfolio went below 200,000 I would wait until it went above 200,000 in a month to lock in the gain again.
I have an emergency fund and I obtained a home equity line of credit.
I have a low interest rate on my mortgage, like 3.4% I believe. And I do not think there is a prepayment penalty on this mortgage.
I think this might psychologically make a difficult work situation slightly more tolerable. It would help me to see in a timely way how I am progressing toward achieving a goal. The only drawback I can see is that if I waited to lock into the investment portfolio gains until after the job ended, I might pay less capital gains tax on the investment portfolio gains because my annual income would be less.
What do you think about this plan? Does it sound like a good idea?