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Hello,
We are in first year of phased retirement. Looks like we will be in the 15% tax bracket this year and from now on. Gross income about 45,000 for the next 4 years then will retire fully at age 62 and begin SS for both of us at about $25,000/year. We have set aside about 120,000 in post tax money to add about 20,000/year to income. We will try to keep this figure at about $120,000 in layered CDs for permanent 4 year cushion in fixed accounts.* Right now, this $$ is all in a large CD (3.25%) for another 6 months.* Our 403B is 75% stocks Goal is $60,000/year inflation adjusted indefinately. .(FireCalc says we are 100% on target).*
No other debts.
Our variable rate mortgage has been excellent over the last 5 year at about 4%. It is now going to adjust to 6.3 or another $93/month ($523 P&I). Balance is $78,400.
My question is:
What is advantage of paying off mortgage in Nov. this year? Is there a rule of thumb or calculator somewhere. Every calculator I find has to do with reinvesting the money not using the previous mortgage $$ to go toward monthly expenses in retirement.
I hope this explains my situation and my question...This site and FireCalc have been invaluable in helping me to plan our retirement and keep expenses very low using no load mutual funds with low expense ratios.
All the best...Ted
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Ted
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