Reply to Walk away from $1 million a year?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP again.  It sounds like a lot of posters believe there is no such thing as "good debt."  I hear that a lot on bogleheads.  I'm not sure I agree.  With the Trump (ugh) tax stuff there's less of an incentive as before to keep a mortgage, but it still seems to me that, over the long term, you will do better in the market than what you'd save in interest by paying off a mortgage with a low interest rate (in my case, 3.25 percent).  I realize that not having a mortgage is a comfort thing for many, though.  [/quote]

You can keep the mortgage, people are suggesting you pay it off because 1) you haven't answered the question about how much you spend, just said you have a $2k/month mortgage and no other debt, and 2) without more information that's all we can advise you on.

If your total annual outlay is less than $200k you can retire today.  If you don't know what it is you need to figure that out first.  If it's more than $200k then you need to reduce it, and paying off the mortgage is the only clue anyone has to go on for a way to do that because it's the only information you've provided.[/quote]

I hear you.  The bottom line is that I obviously [b]can[/b] retire on 200k a year, my question is how crazy is it to walk away from a guaranteed $1 million a year to do that?  Would you do it?  I'm doing a sanity check. [/quote]

Only you know HOW miserable you are, and how happy you could be on $200k/year. Ask yourself what you will do when you/your spouse needs a new car, wants to take a fancy vacation, etc. You no longer will have bonuses, etc. to cover these things. You need to think, REALLY THINK, about how you live now and how you would like to live in retirement. And make sure your spouse is on board.

Lots and lots of people (us included) would be thrilled with a $200k annuity every year and never having to work again. Only you know if your current wants/needs fit within these parameters.[/quote]

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