Howdy from Texas. I bet this is a common question and I'm sure it's in one of the forums already but I couldn't find it.
Lots of websites out there on the subject but none appear to do a complete analysis on whether/when one should pay off a mortgage. My own incomplete analysis that ignores taxes shows that for the size nest egg we have and the amount of principal left on the loan, the reduction in the nest egg is more than offset by the reduction in the overall annual budget.
Again this ignores taxes, so a payoff increases taxes because we're probably back to the standard deduction. At any rate, there is a point in the life of the loan where all of our deductions, including interest, fall below the standard deduction.
I'm not talking about raiding 401Ks or rollover IRA's - just wondering if somebody out there has or knows of a spreadsheet or tool that takes this into account when calculation withdrawal rates.
Sent from my iPad using Early Retirement Forum
Lots of websites out there on the subject but none appear to do a complete analysis on whether/when one should pay off a mortgage. My own incomplete analysis that ignores taxes shows that for the size nest egg we have and the amount of principal left on the loan, the reduction in the nest egg is more than offset by the reduction in the overall annual budget.
Again this ignores taxes, so a payoff increases taxes because we're probably back to the standard deduction. At any rate, there is a point in the life of the loan where all of our deductions, including interest, fall below the standard deduction.
I'm not talking about raiding 401Ks or rollover IRA's - just wondering if somebody out there has or knows of a spreadsheet or tool that takes this into account when calculation withdrawal rates.
Sent from my iPad using Early Retirement Forum