Mortgage payment impact on Safe Withdrawal Rate (Math is hard :( )

[Mulligan]

Quote:

Originally Posted by ERD50 Mine's on auto-deduct, I find it easier to just keep doing nothing than to go though the 'work' of paying it off. But then again, I'm at sub 3%. -ERD50

I still write a check and use a stamp, and that isn't hard work either. But maybe I need to think this auto deduct thing through. 20 more years of buying stamps including opportunity cost of the lost money may make me decide to adopt that method of payment.


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[ERD50]

Quote:

Originally Posted by Mulligan I still write a check and use a stamp, and that isn't hard work either. But maybe I need to think this auto deduct thing through. 20 more years of buying stamps including opportunity cost of the lost money may make me decide to adopt that method of payment. Sent from my iPad using Tapatalk

You.... write a check? (shudder...), and use a, a, a, stamp? (double-shudder), ... every month! Oh the humanity!

Seriously, mailing a check seems as archaic as a telegram to me. The small but nagging effort, the small (but it adds up) expense, and worst of all for me - the risk that a payment gets lost in the mail. Or I might get distracted and forget.

I like the assurance that with auto-deduct, it is paid on time every time, and a solid record along the way. While the stamp/envelope are trifling matters, there just is no benefit to them, and some serious (and not so serious) drawbacks, so do away with them! This is the year 2015!

-ERD50

[petershk]

Thanks all!
Great advice all around.

Given my situation I modeled 45 years and added/removed in firecalc to simulate. The reality is the safety rate difference is almost nil but the odds of getting a 3.7% mortgage in 5-10 years seems small thus it's likely in that time even 30 year binds will pay better than 3.7... So it does seem like a cheap option.

No hurry to pay it off

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