I am at the verge of FIRE - a few more months, I will reach another vesting cliff of stock options, that will worth about 50k after tax. then I am gone.
DW and I have about 2.3M investable money; we spend about 55k-65k a year, depending on how much we travel. DW is already retired. Kid is out on her own. I think we are good.
We have a mortgage (rate=3.5%) on our house. We also have a paid-off rental property. The monthly rents are higher than the mortgage payment, but if all expenses are included (property taxes, etc), the net of rental income minus expenses, minus our mortgage on the primary residence, comes about $2k short. (the above 55-65k expenses figure is after netting out the rental income)
If we sell the rental, we can use the proceeds to pay off the mortgage - they come to almost the same amounts. In that way we'd save about 2k in annual cash flow.
Or we could keep the rental, and pay off the mortgage with cash (Right now we have 50/50 stock/bond&cash. I expect to raise more cash in the remaining months of the year)
The third option is to maintain the current situation. For the last 3 years we were very lucky to have very good tenants, but now they are moving out. So we need to find new ones if we continue the rent.
Our mortgage has many many years to go. The rate is pretty good, but I still cannot see that we would carry it all the way during our retirement.
DW and I have about 2.3M investable money; we spend about 55k-65k a year, depending on how much we travel. DW is already retired. Kid is out on her own. I think we are good.
We have a mortgage (rate=3.5%) on our house. We also have a paid-off rental property. The monthly rents are higher than the mortgage payment, but if all expenses are included (property taxes, etc), the net of rental income minus expenses, minus our mortgage on the primary residence, comes about $2k short. (the above 55-65k expenses figure is after netting out the rental income)
If we sell the rental, we can use the proceeds to pay off the mortgage - they come to almost the same amounts. In that way we'd save about 2k in annual cash flow.
Or we could keep the rental, and pay off the mortgage with cash (Right now we have 50/50 stock/bond&cash. I expect to raise more cash in the remaining months of the year)
The third option is to maintain the current situation. For the last 3 years we were very lucky to have very good tenants, but now they are moving out. So we need to find new ones if we continue the rent.
Our mortgage has many many years to go. The rate is pretty good, but I still cannot see that we would carry it all the way during our retirement.