Anonymous wrote:

Anonymous wrote:Hmm actually I probably would pay the house off in your position. We paid ours off in a similar situation a few years ago (sold some stock and paid off ALL our debt including our mortgage and remaining student loan debt) and the psychological security it gave us is so freeing.

The nice thing was, we had a baby right after so we were able to redirect our old mortgage payment to our kids' college funds. So whereas before we had $4k going to the bank every month, now it's going to our three kids' educations. Our oldest just turned 9 and has $135k in savings.

Your 9 year old has more in savings than many adults do!

My 9 year old has a lot, too. I know it sounds like a lot, and it is, but if a child chooses and out of state school, the amount listed in this post ($135,000) wouldn't be nearly enough. Look here:

https://www.cappex.com/colleges/University-of-San-Diego/tuition-and-costs Out of state is estimated at $60,242 x 4 years = $240,968 NOT including things like transportation, insurance, medical expenses, possible car, cell phone, spending money, etc. The point being that IF you have the money and can easily afford it and IF you are planning on paying for your child's college, you shouldn't necessarily stop contributing just because the balance is high. Each of my kids has more than $240k in their accounts and we keep going because they could get advanced degrees, in which case we could need much, much more. On the flip side if they choose in state, then we will simply hope to keep the funds for grandchildren one day.

Anonymous wrote:Hmm actually I probably would pay the house off in your position. We paid ours off in a similar situation a few years ago (sold some stock and paid off ALL our debt including our mortgage and remaining student loan debt) and the psychological security it gave us is so freeing.

The nice thing was, we had a baby right after so we were able to redirect our old mortgage payment to our kids' college funds. So whereas before we had $4k going to the bank every month, now it's going to our three kids' educations. Our oldest just turned 9 and has $135k in savings.

Your 9 year old has more in savings than many adults do!

Hmm actually I probably would pay the house off in your position. We paid ours off in a similar situation a few years ago (sold some stock and paid off ALL our debt including our mortgage and remaining student loan debt) and the psychological security it gave us is so freeing.

The nice thing was, we had a baby right after so we were able to redirect our old mortgage payment to our kids' college funds. So whereas before we had $4k going to the bank every month, now it's going to our three kids' educations. Our oldest just turned 9 and has $135k in savings.

Anonymous wrote:We paid our house off already, so with 1M, we'd retire. That's 40k annually at 4%, which is more than enough to happily live off for the rest of our lives.

Not for me. Sounds dreadful.

Look, I don't love my job; sometimes I downright loathe it. But there are a lot of things I DO like to do, and many of them cost money. SO I work so I can do the things I like to do. I have zero interest in retiring just so I can stop going to work, but not being able to do the things I like to do. If you are happy living that life, more power to you - and I'm even a little jealous. But living on less than $3350 per month, before taxes, won't let me do the things I love to. I could do it, and will if I have to, but I sure won't love it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

What do you people invest in to get 4% return?

4% and it's completely state and federal tax free.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0043#tab=1

anyone afraid of a crash and then it's ... all gone?

Nope, because historical returns are always positive long term. That's why the stock market exists--to make the rich richer.

You don't have that time if you already retired.

Um, yeah you do. If you're going to die very soon anyway, then you can spend down. If you've got many years ahead of you, then you ride it out.

I do have suicide as a part of a plan. Thus thread is ridiculous. OP, go to boggleheads.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

What do you people invest in to get 4% return?

4% and it's completely state and federal tax free.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0043#tab=1

anyone afraid of a crash and then it's ... all gone?

Nope, because historical returns are always positive long term. That's why the stock market exists--to make the rich richer.

You don't have that time if you already retired.

Um, yeah you do. If you're going to die very soon anyway, then you can spend down. If you've got many years ahead of you, then you ride it out.

If you have current income that can cover your monthly mortgage payment, I would agree with PPs and not pay it off entirely. That said, you may want to write an additional one-time check specifically aimed at principal. That way, you can tip your monthly payment in your favor. Make the payment enough so that the portion of principal is greater than what you pay in interest (even if it's by a dollar). Then, the rate of amortization really picks up speed without having to increase your actual dollar payment going forward.

Also, something to think about are interest rates. They are poised to start a long-term rise (another rate increase is set for December), and that may present more (and relatively safer) investing opportunities in the future. Maybe municipal bonds will someday pay 5% again, and you can live off of tax free income.

It is scary to invest and risk down turns. I have done it but be careful and you can always do a stop order in case it drops below where you are comfortable.

Anonymous wrote:I'd pay off the house. The security of knowing I own my house free and clear would be amazing! You could invest monthly whatever you were paying in mortgages before.

This Washingtonpost money lady is all about having no debt:

https://www.washingtonpost.com/business/get-there/yes-all-debt-is-bad-debt/2017/04/14/77955ea4-1ee3-11e7-a0a7-8b2a45e3dc84_story.html?utm_term=.c785b79d5d60

Yeah, debt free is good, but it can cost you. I'd suggested a refi into a 15 yr. note earlier, with enough principal pay down to make it affordable. At an average 4.8% per year, the remaining cash pile will double in 15 years. Paid off house and huge cash pile gets my vote!

I'd pay off the house. The security of knowing I own my house free and clear would be amazing! You could invest monthly whatever you were paying in mortgages before.

This Washingtonpost money lady is all about having no debt:

https://www.washingtonpost.com/business/get-there/yes-all-debt-is-bad-debt/2017/04/14/77955ea4-1ee3-11e7-a0a7-8b2a45e3dc84_story.html?utm_term=.c785b79d5d60

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

What do you people invest in to get 4% return?

4% and it's completely state and federal tax free.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0043#tab=1

anyone afraid of a crash and then it's ... all gone?

Nope, because historical returns are always positive long term. That's why the stock market exists--to make the rich richer.

Look at the 2008 crash. My portfolio dropped about 50%. But within a couple of years it was whole again and growth since then has been very high. Even if I lost 50% today I’d still be ahead of where I would have been if it had been sitting in an account at .25% interest. Certainly there is a timing factor- the closer you are to needing to use the money the more conservative you should be.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

What do you people invest in to get 4% return?

4% and it's completely state and federal tax free.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0043#tab=1

anyone afraid of a crash and then it's ... all gone?

Nope, because historical returns are always positive long term. That's why the stock market exists--to make the rich richer.

You don't have that time if you already retired.

https://youtu.be/ura2PkfotTs

This. This is what you should do with it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

What do you people invest in to get 4% return?

4% and it's completely state and federal tax free.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0043#tab=1

anyone afraid of a crash and then it's ... all gone?

Nope, because historical returns are always positive long term. That's why the stock market exists--to make the rich richer.

anyone afraid of a crash and then it's ... all gone?

Yes, I already panicked and sold everything earlier this year. No one gets the top and pigs get slaughtered.