Reply to A nice problem to have

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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]

And that is a VERY VALID reason for paying off the mortgage and then investing a portion of your mortgage payment.

Because yes, while technically it's "best" to take a 3% mortgage and invest everything else, that only works if you make over 3% AND you invest it, not spend it.  Fact is most people would tend to spend a part of it, that is why so many are in debt, hit retirement and cannot afford to retire, etc.  Most people don't do what is ideal to do financially.  Therefore, it is a guaranteed rate of return to pay off the house and no longer have a mortgage payment.  Then you will hit retirement without a mortgage (and can possibly downsize if desired and have more $$$ to spend if needed) 
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