sms60
Confused about dryer sheets
This week I paid off my $187,000 mortgage. This took a big chunk of my nest egg. I made this decision primarily because returns are so low on investments and my mortgage was at 6.5%. The alternative was to refinance $150,000 at 4%. Yes I know that mortgage interest is tax deductible but I was looking at less than $6000 a year in mortgage interest while the standard deduction is $5950 for 2012. Also, the standard deduction has been increasing with inflation while the mortgage interest would decrease year after year. I have no other deductions to itemize except for charitable contributions. I am now left with $185,000 in investable assets which is currently $60,000 cash and the rest 65% bonds, 35% stock. Some of the cash is in my 403b which is paying 3% in a fixed interest acct. I am a 61 year old single woman who hopes to retire next year at age 62. I have absolutely no debt of any kind and can live comfortably on $50,000/year (before tax) without the mortgage. Luckily I will have a few sources of income in retirement as follows:
Social Security - 19,884/year
Annuity (for life)- 16,740/year (increases with inflation)
Pension (defined benefit from my work) 8,448/year.
This totals just over $45,000 which leaves me with $5,000/yr to obtain from investments. That is under 3% of my current portfolio.
I keep second guessing my decision and would appreciate any of you weighing in on this. Thanks
Social Security - 19,884/year
Annuity (for life)- 16,740/year (increases with inflation)
Pension (defined benefit from my work) 8,448/year.
This totals just over $45,000 which leaves me with $5,000/yr to obtain from investments. That is under 3% of my current portfolio.
I keep second guessing my decision and would appreciate any of you weighing in on this. Thanks