Reply to Would you retire with a NW of $10m?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP, my answer to your question would depend on the following factors:

1. Whether I like my current job 
2. Whether the current job is demanding and takes me away from my family too much
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention 
4. Whether college funds are fully funded or not
5. Whether house is paid off 
6. Whether we have any other major expenditures coming in the future that have not been saved for[/quote]

OP here: 
1. Whether I like my current job. [b]I feel burned out. Otherwise, I probably would not be crunching retirement numbers. [/b]
2. Whether the current job is demanding and takes me away from my family too much [b]Yes. It's a very demanding job.[/b]
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention [b]My parents are not the youngest, so yes.[/b]
4. Whether college funds are fully funded or not [b]We should have enough for in-state tuition. The youngest has $200k in their 529. The older ones have more.[/b]
5. Whether house is paid off [b]About 800k mortgage @2.75%[/b]
6. Whether we have any other major expenditures coming in the future that have not been saved for [b]I guess, nobody really knows[/b][/quote]

Take a sabbatical.[/quote]

I would say there is no point in paying off your mortgage early when the interest rate is only 2.75%. After tax investment returns will almost certainly exceed 2.75%. You also need to consider your tax situation, because you can itemize mortgage interest on your tax return if it is more favorable than taking the standard deduction. Even at 2.75% that provides around 20k for an itemized deduction. Plus 10k for SALT taxes and you are already at 30k which is more than the standard deduction this year. The TCJA, will expire soon which will make it more favorable to itemize. Once the TCJA expires, the standard deduction for a married couple will only be around 16k. In you situation, you will come out ahead by itemizing this mortgage interest when TCJ expires. The tax adjusted interest rate is even lower than 2.75%.[/quote]

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