Early Retirement & Financial Independence Community - View Single Post - Covering a mortgage without losing your ass(ets).

Nords · 10-04-2008, 10:08 PM

As of 30 Sep 08, IJS issued a 29 cent/share dividend and closed at $65.05/share.

We've had this experiment running for just under four years now, and the after-tax APY is still 5.44% in the midst of what would appear to be a pretty sucky market. Our mortgage is a fixed-rate 5.375% so even without the mortgage deduction (exceeding our standard deduction) we're ahead of the game. The reinvested dividends should pay off quite well in the next two decades.

For those who haven't yet read the earlier posts in this thread, in our situation the FIRECalc run with a mortgage has a higher success rate than the FIRECalc run without a mortgage. (The larger portfolio created by a big Hawaii mortgage has a higher survival even with a higher withdrawal rate.) We also have the tolerance for volatility and the annuitized income to be able to take on this risk. See my profile for more details.

10-04-2008, 10:08 PM	#80
Nords Moderator Emeritus Join Date: Dec 2002 Location: Oahu Posts: 26,860	As of 30 Sep 08, IJS issued a 29 cent/share dividend and closed at $65.05/share. We've had this experiment running for just under four years now, and the after-tax APY is still 5.44% in the midst of what would appear to be a pretty sucky market. Our mortgage is a fixed-rate 5.375% so even without the mortgage deduction (exceeding our standard deduction) we're ahead of the game. The reinvested dividends should pay off quite well in the next two decades. For those who haven't yet read the earlier posts in this thread, in our situation the FIRECalc run with a mortgage has a higher success rate than the FIRECalc run without a mortgage. (The larger portfolio created by a big Hawaii mortgage has a higher survival even with a higher withdrawal rate.) We also have the tolerance for volatility and the annuitized income to be able to take on this risk. See my profile for more details. __________________ * Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.” Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement." I don't spend much time here— please send a PM.