No more mortgage!

[corn18]

This was an unusual year for us for income due to a merger and change in control clauses (RSU's vesting, bonuses early). We managed to save enough to pay off our mortgage, but let it sit in a MM for a couple of months while we examined our options. After much analysis and then a bit of emotion, we wired $572,838.49 to our mortgage bank today and I just verified with them that it hit the account and our mortgage balance is zero. The PI payment will go into our taxable account and our 60/40 AA.

This is very surreal for us as 6 years ago we we had a net worth of zero and were spending way more than we made. Then we read The Millionaire Next Door and fixed our spending. Now we have $1M in retirement savings and a paid off house. And a good shot at retiring in 2 years @ 56.

Life is good!

Tom

 

[MissMolly]

I am speechless that you have been able to save that amount in such a short time. You must have a very large income. Congratulations!

 

[corn18]

I am speechless that you have been able to save that amount in such a short time. You must have a very large income. Congratulations!

We do have a very large income. But somehow we managed to accumulate $160k of consumer debt, a $500k mortgage and we were spending $3k more a month than we made. That was on $350k of income.

Now we make twice that (this year we made 4x that) and our expenses are $120k / year plus whatever we decide to blow that dough on (which was quite large this year).

 

[ExFlyBoy5]

Congrats!!! Many people here will disagree, but I think being mortgage free is one of the tenants of being financially independent! And it sure feels good, too...eh?

 

[Bamaman]

Congratulations on your change of priorities. And a paid for home is often important in order to ER.

We bought a 3900 square foot house a month ago and paid cash. Unfortunately, it's going to take me 2-3 months to get the old 5200 square foot house ready to sell because of the luxury of having 4 car garages--and too much good stuff to wade through.

ER comes down to living on far less and saving far more than normal people on a percentage basis. Living below one's means.

 

[Red Badger]

Congrats on sobering up (financially)! And paying off the mortgage monster.

We are actually going to incur a modest mortgage in retirement. But for specific reasons. We are moving from the frying pan into the fire (that's for another post). Anyhoo, we know we are buying our last home and want to upgrade accordingly. One of our pensions is small, non-cola (uncola? ) and 100% joint survivable. Ergo, our plan is to obtain a loan that this pension will cover. The loan, and the proceeds from selling our current digs will be our means to an end. In all likely hood, we'll both assume room temps while that mortgage is still in amortization. Our equity should more that settle that "affair." If not, tuff sh!t, we're busy being dead.

 

[Vacation4us]

Congratulations! That’s really impressive!

My mortgage (a measly 29k) will be paid off in 10 months then we retire in 12 months.

You have really turned your financial life around I bet it feels awesome!

 

[Gumby]

Well done, Tom. It is a great feeling to be mortgage free, isn't it?

 

[CardsFan]

This is very surreal for us as 6 years ago we we had a net worth of zero and were spending way more than we made. Then we read The Millionaire Next Door and fixed our spending. Now we have $1M in retirement savings and a paid off house. And a good shot at retiring in 2 years @ 56.

Life is good!

Tom

We do have a very large income. But somehow we managed to accumulate $160k of consumer debt, a $500k mortgage and we were spending $3k more a month than we made. That was on $350k of income.

Now we make twice that (this year we made 4x that) and our expenses are $120k / year plus whatever we decide to blow that dough on (which was quite large this year).

Congrats on paying off the house.

Now, retiring in 2 years may be more of a challenge. To support your now reduced spending of $120k, most here would say you need $3million. Can you save that in 2 years? Sounds like your income is very high, so maybe you can. But then, the $120k needs to be real, including all taxes and "blow that dough" expenses.

Not trying to be a Debbie Downer, but just a realist.

 

[MarieIG]

Congrats Tom! (I really felt a sense of accomplishment when those mortgage payments were gone.)

 

[corn18]

Congrats on paying off the house.

Now, retiring in 2 years may be more of a challenge. To support your now reduced spending of $120k, most here would say you need $3million. Can you save that in 2 years? Sounds like your income is very high, so maybe you can. But then, the $120k needs to be real, including all taxes and "blow that dough" expenses.

Not trying to be a Debbie Downer, but just a realist.

I have a $48k/year COLA military pension, $60k SS @ 70, free retiree medical until 65 and that turns into a Medicare supplement. So I really just need to survive until 70 and then most of our expenses are covered.

Firecalc 99% says I need $1.8M to retire at 56 with a $25k travel budget. We're on track for that.

Best laid plans...

 

[CardsFan]

I have a $48k/year COLA military pension, $60k SS @ 70, free retiree medical until 65 and that turns into a Medicare supplement. So I really just need to survive until 70 and then most of our expenses are covered.

Firecalc 99% says I need $1.8M to retire at 56 with a $25k travel budget. We're on track for that.

Best laid plans...

Then, it sounds like you have a plan. Not many could/would change the lifestyle that much from such a high income. Good luck in getting there in a few years (if it takes 3-4 instead of 2 you are still way ahead)

 

[corn18]

This is the chart that guides us. Would be nice to get laid off in 2021 with a package.

 

[rk911]

This was an unusual year for us for income due to a merger and change in control clauses (RSU's vesting, bonuses early). We managed to save enough to pay off our mortgage, but let it sit in a MM for a couple of months while we examined our options. After much analysis and then a bit of emotion, we wired $572,838.49 to our mortgage bank today and I just verified with them that it hit the account and our mortgage balance is zero. The PI payment will go into our taxable account and our 60/40 AA.

This is very surreal for us as 6 years ago we we had a net worth of zero and were spending way more than we made. Then we read The Millionaire Next Door and fixed our spending. Now we have $1M in retirement savings and a paid off house. And a good shot at retiring in 2 years @ 56.

Life is good!

Tom

congratulations and well done!

 

[W2R]

CONGRATULATIONS!!! What a happy day.

 

[jw72]

Congratulations!

 

[Dtail]

Congrats. Very impressive.
We reduced our expenses 60% over 4 years before retiring, but it wasn't specifically to retire.
Also had a high income, but was saving since 21 y.o., but not to the level % wise of most folks here.
Nevertheless, we all get there in the end somehow.

 

[ShokWaveRider]

Congrats!!! Many people here will disagree, but I think being mortgage free is one of the tenants of being financially independent! And it sure feels good, too...eh?

+1 We have been Mortgage Free since 1995, a major contributor to our ER life.

 

[Toocold]

Congratulations on your amazing progress. I felt such relief when we paid off our mortgage and our family did a happy dance.

 

[ckelly78z]

Congrats!!! Many people here will disagree, but I think being mortgage free is one of the tenants of being financially independent! And it sure feels good, too...eh?

I don't care how it penned out financially (made more sense to pay a low % mortgage), My soul was settled when my mortgage was finally paid off 5 years ago...never going back !

 

[The Cosmic Avenger]

Congratulations! We were planning on having ours paid off next year, when that money would be diverted to tuition instead, but we got offered 0% financing on a new car, and so decided to take the money we had saved up to pay cash for the car, and use that to pay off the mortgage instead! (Now the car loan will be paid off about when we start having to pay tuition instead.)

 

[kgtest]

This was an unusual year for us for income due to a merger and change in control clauses (RSU's vesting, bonuses early). We managed to save enough to pay off our mortgage, but let it sit in a MM for a couple of months while we examined our options. After much analysis and then a bit of emotion, we wired $572,838.49 to our mortgage bank today and I just verified with them that it hit the account and our mortgage balance is zero. The PI payment will go into our taxable account and our 60/40 AA.

This is very surreal for us as 6 years ago we we had a net worth of zero and were spending way more than we made. Then we read The Millionaire Next Door and fixed our spending. Now we have $1M in retirement savings and a paid off house. And a good shot at retiring in 2 years @ 56.

Life is good!

Tom

Life IS GOOD! Hey. no stealing my motto! Nice job w/the mortgage. I think timing wise, just beyond the middle of the longest bull market in history, you nailed it. If the market goes down now...which is probably more likely in the next year or so with the huge run-up, you will likely get a 10% discount on those equities you are now buying in taxable! I refi'd to a 15year at 2.75% APR on my birthday back in July. Hoping to have it paid off by age 50...we shall see.

 

[freedomatlast]

We bought our first house in 1984. Paid it off in 1990. Never had a mortgage on any primary residence since. This has been a huge factor in our ability to save and invest and to becoming FI.

 

[f35phixer]

Congrats Hole, Offer stills stand to come back to PAX !!!!!!!!!!

I'm out Dec 2020. Can't wait, I'll be 62 so getting that extra 10% in pension will be nice. Wife is done Dec 24, 2019....

 

[upupandaway]

Truly an inspirational story. Congrats!