I'm 61yo engineer with good salary. My wife is 57 with good salary. Problem is she is burning herself out working overtime trying to pay off debt and save more for son's college. I am thinking she is over-reacting and we are close to FI.
me:
$948K lump sum assets (401K, IRA, older pension)
her:
$842K lump sum assets (403B, pension plan, HSA)
expected retirement monthly income:
$2400/mo (my current pension annuity plan)
$5800/mo (combined SS if we both wait until FRA)
Debt:
$347K (mortgage, 30y fixed at 3.625% - $110K equity)
$8K (car loan, 2%)
$5K (CC debt)
Goals:
wife wants to save up $20K for son's college, before retiring
I am itching to semi-retire or retire soon
A few questions ....
1. Does it make sense to clobber our short-term debt using my 401K assets?
2. When does it make sense to pay off the house?
We could dip into my 401K,IRA to kill the mortgage. Maybe not make sense numbers-wise but, it would be an emotional relief.
Thanks.
me:
$948K lump sum assets (401K, IRA, older pension)
her:
$842K lump sum assets (403B, pension plan, HSA)
expected retirement monthly income:
$2400/mo (my current pension annuity plan)
$5800/mo (combined SS if we both wait until FRA)
Debt:
$347K (mortgage, 30y fixed at 3.625% - $110K equity)
$8K (car loan, 2%)
$5K (CC debt)
Goals:
wife wants to save up $20K for son's college, before retiring
I am itching to semi-retire or retire soon
A few questions ....
1. Does it make sense to clobber our short-term debt using my 401K assets?
2. When does it make sense to pay off the house?
We could dip into my 401K,IRA to kill the mortgage. Maybe not make sense numbers-wise but, it would be an emotional relief.
Thanks.