I think if we run time value of money calculations with a range of real return assumptions it likely is not a major factor and is mostly a personal preference. Especially as the mortgage becomes much smaller than investment assets.We know that every dollar in portfolio value can support a 3-4% SWR.
Then doesn’t it stand to reason that one should not pay off one’s mortgage early if the annual principal + interest payments are less than 4% of the principal amount? Assuming you are looking at an early FIRE with decades of mortgage payments left.
Statistics: Posted by stan1 — Fri Jul 12, 2024 10:12 am — Replies 7 — Views 1606
