A random thought ...
We are in pretty good shape, 100% by Firecalc, for retiring in 2020.
At that point I'll be 64. We have been putting all new savings into 401Ks and HSA the past 5 years or more. Now, I'm thinking maybe it's time to start paying down the mortgage. The mortgage will be the only debt we'll have but, there's no way we'll have it payed off.
We owe $335K on our 30yr mortgage, 28 yrs left. Home vale is >$460K.
The rate is 3.625% fixed.
WE plan to sell and downsize again in a few years, about the time I retire or shortly after that. We want a modest ranch, or a nice condo perhaps.
Normally, I'd say it makes more sense to keep putting savings into tax deferred savings. Almost all of our retirement savings is tax deferred, with AA of about 60% equity, 40% bonds. I would think that long term it would earn > 3.625%.
A few opposing thoughts to encourage paying down mortgage:
* the goal of downsizing is a short term goal (<5yrs) .... cashing out on our house to buy something else. Long term thinking is risky.
* paying down the mortgage is guaranteed 3.625%
* the next mortgage will be at a higher rate since, rates have been climbing (assumption). Buying equity now, will make that loan smaller.
* debt is evil
We'll never have the mortgage fully paid off by retirement but, was thinking of where best to put our aggressive savings over the coming years.
We are in pretty good shape, 100% by Firecalc, for retiring in 2020.
At that point I'll be 64. We have been putting all new savings into 401Ks and HSA the past 5 years or more. Now, I'm thinking maybe it's time to start paying down the mortgage. The mortgage will be the only debt we'll have but, there's no way we'll have it payed off.
We owe $335K on our 30yr mortgage, 28 yrs left. Home vale is >$460K.
The rate is 3.625% fixed.
WE plan to sell and downsize again in a few years, about the time I retire or shortly after that. We want a modest ranch, or a nice condo perhaps.
Normally, I'd say it makes more sense to keep putting savings into tax deferred savings. Almost all of our retirement savings is tax deferred, with AA of about 60% equity, 40% bonds. I would think that long term it would earn > 3.625%.
A few opposing thoughts to encourage paying down mortgage:
* the goal of downsizing is a short term goal (<5yrs) .... cashing out on our house to buy something else. Long term thinking is risky.
* paying down the mortgage is guaranteed 3.625%
* the next mortgage will be at a higher rate since, rates have been climbing (assumption). Buying equity now, will make that loan smaller.
* debt is evil
We'll never have the mortgage fully paid off by retirement but, was thinking of where best to put our aggressive savings over the coming years.