Lagniappe
Recycles dryer sheets
- Joined
- Mar 21, 2006
- Messages
- 406
I recently got a 30 year fixed rate mortgage on my new retirement home and was planning to pay off as quickly as possible. With all the talk of SPIA's for those without pensions lately, I looked at the rates for someone my age. Right now, the best quote I could find (from the Vanguard affiliate) was 5.65% with no inflation adjustment. Since my mortgage rate does not increase with inflation either, would the difference between the two rates provide both peace of mind (I don't have to worry about how the market is doing to know that I can pay my mortgage - same reason I was going to pay off such a low rate early) and profit (the difference between the payoff rate and the SPIA payout)? I am not sure how payouts from SPIA's are taxed, since I already paid taxes on the money used to buy it.
Not sure if it's relevant, but I am mid 40's, and the amount would be about 15% of my liquid net worth. No dependents, so no concerns about leaving an estate.
Not sure if it's relevant, but I am mid 40's, and the amount would be about 15% of my liquid net worth. No dependents, so no concerns about leaving an estate.