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[quote=Anonymous][quote=Anonymous]Op here.  Thanks for the (mostly) helpful advice.   My concern is that if we have a large fund that doesn’t have withdrawal penalties we’ll just spend it rather than make the compromises we’ve been making for the last 30 years.  The only reason that we have so much in retirement savings is that neither of us can stomach the penalties that we would have to pay if we raided it. [/quote]

You still shouldn't pay off such a low mortgage. If you need to impose penalties on yourself, then:
  - Do a backdoor Roth for you and your husband (14k total per year) and open and fund Roth IRAs for your three teens if they have earned income (21k total per year). Those will have actual penalties for early withdrawal.
  - Max out your HSA. Penalties for non-healthcare withdrawals.
  - Get your 529s in shape for twelve years of college, if that is expected. Penalties for non-education withdrawals, except for the 35k Roth IRA transfer once the accounts have sufficiently aged.
  - INVEST the remainder in a brokerage account. Having to pay short-term gains versus capital gains is in essence a >10% "penalty" for withdrawing quickly/rashly.
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