MdaPetralia
Recycles dryer sheets
- Joined
- Oct 30, 2021
- Messages
- 87
I recently bought a new primary residence for my DW and I and just sold the old one. I took out a 15 year $500K conventional mortgage at 6% on new home (with market value of $700K). I now have $940K in liquid cash after closing on old residence and cashing in some matured bonds and T-bills. Should I now keep or pay-off, part of or all of, new mortgage?
Background: My wife and I are both 56 and retired. No other debt besides the new mortgage. Our net worth (excluding $200K equity in new home) is around $5.5m (50/50 in qualified and non-qualified accounts with AA approx. 50/50) with a 2.8% SWR (includes all expenses, mortgage, taxes, healthcare, etc.). If we pay-off entire mortgage, our net worth would drop to $5m and then looking at a 2.05% SWR (no more mortgage payment and $500K goes into new home equity).
I would like to keep a few years worth of living expenses in cash or cash equivalents (T-bills, CD's, etc) but not looking to invest in the stock market with this money.
My DW says to pay off entire mortgage and I'll thinking of paying off maybe ½ ($250K or $300K).
Your thoughts please?
Background: My wife and I are both 56 and retired. No other debt besides the new mortgage. Our net worth (excluding $200K equity in new home) is around $5.5m (50/50 in qualified and non-qualified accounts with AA approx. 50/50) with a 2.8% SWR (includes all expenses, mortgage, taxes, healthcare, etc.). If we pay-off entire mortgage, our net worth would drop to $5m and then looking at a 2.05% SWR (no more mortgage payment and $500K goes into new home equity).
I would like to keep a few years worth of living expenses in cash or cash equivalents (T-bills, CD's, etc) but not looking to invest in the stock market with this money.
My DW says to pay off entire mortgage and I'll thinking of paying off maybe ½ ($250K or $300K).
Your thoughts please?