Due mostly to the bull market, my net worth has substantially increased in the last four years. Due to additional investment of funds, and return on investment, my net worth has increased by 156%. Yes, my net worth today is worth approximately one and a half times more than it was worth four years ago. And I am not factoring in the increase in equity that I have in my home when I obtained the 156% return rate.
Assume the following: a downward market correction will occur within the next two years; I can still contribute the maximum to my 401k and Roth IRA; and I have recently become a homeowner with a competitive interest rate of about 3.5%. In light of these factors, does it still make sense to lock into some of my investment gains and use these gains to pay off some, or all, of my mortgage. The goal would be, by getting rid of monthly mortgage payment, my overall annual cost of living would be reduced. I plan to stay in the home for at least the next five years if not longer.
Oh- one other thing, there is a strong likelihood that my employment position will be relocated and I will not be moving, so I will be laid off.
Please offer any helpful advice, and please don't limit your comment to "this is another should I pay off the mortgage early question." I am trying to retire early and I am trying to figure out how to maximize the likelihood of being able to do it as soon as possible. Thank you.
Assume the following: a downward market correction will occur within the next two years; I can still contribute the maximum to my 401k and Roth IRA; and I have recently become a homeowner with a competitive interest rate of about 3.5%. In light of these factors, does it still make sense to lock into some of my investment gains and use these gains to pay off some, or all, of my mortgage. The goal would be, by getting rid of monthly mortgage payment, my overall annual cost of living would be reduced. I plan to stay in the home for at least the next five years if not longer.
Oh- one other thing, there is a strong likelihood that my employment position will be relocated and I will not be moving, so I will be laid off.
Please offer any helpful advice, and please don't limit your comment to "this is another should I pay off the mortgage early question." I am trying to retire early and I am trying to figure out how to maximize the likelihood of being able to do it as soon as possible. Thank you.