FedExCourier
Recycles dryer sheets
I am retiring as a FedEx driver at the end of November and turning 60 years old. No more insanely busy Christmas peak seasons to go through! I will be my own financial investor with Bogle and Bernstein as my foundation educational guides. Here is my tentative scenario and one slight dilemma. Both have a 100% success rate according to FIRECalc.
Expense needs annually:
$45000 with mortgage
$36000 without mortgage
Income annually:
Pension $25100 no COLA
Current 401k $515000 (contribute $600 per month until Dec 1, 2014)
Dilemma:
I will have $44000 left to owe on my home by the time I retire. Do I take it out of my 401k and pay the mortgage off?
Cons:
One time higher tax bracket
Less $44000 to grow in 401k
Also, less liquid money for emergencies
Pros:
No more mortgage payments and debt free
Lower taxes paid after 1st year in retirement
Is there a big mistake I'm missing here by taking a relatively small lump sum to pay off my mortgage at retirement?
Expense needs annually:
$45000 with mortgage
$36000 without mortgage
Income annually:
Pension $25100 no COLA
Current 401k $515000 (contribute $600 per month until Dec 1, 2014)
Dilemma:
I will have $44000 left to owe on my home by the time I retire. Do I take it out of my 401k and pay the mortgage off?
Cons:
One time higher tax bracket
Less $44000 to grow in 401k
Also, less liquid money for emergencies
Pros:
No more mortgage payments and debt free
Lower taxes paid after 1st year in retirement
Is there a big mistake I'm missing here by taking a relatively small lump sum to pay off my mortgage at retirement?