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Retirement Discussions / FIRE Wannabees
|Subject: Re: FIRE Update||Date: 1/3/2013 10:40 AM|
|Author: mazske||Number: 4967 of 5138|
#1 concern is the age old question - invest or pay extra to the mortgage. #2 is what is the FIRE plan - right now, it's only an idea with no details. I'm thinking payoff the house then semi-retire meaning working part-time or in more interesting/lower paying jobs.
I don't know if there is a right or wrong answer to your first concern. You have a low mortgage interest rate, so some out there may don't pay any extra on it as you can make more by investing. However, for peace of mind, I fall into the side that says pay some extra on your mortgage to pay it off quicker so it's not hanging over you.
Personally, since I now have the extra bucks to do so, I'm both paying quite a bit more on my mortgage to pay it off, roughly 2 years left on it, and also investing more into stocks each month.
I debated putting all of the extra bucks into my mortgage, 5% rate, but wanted to invest. I debated putting all the extra bucks into my investing, but wanted to get my mortgage paid off.
So, I sort of split it down the middle.
FIRE plan. What do you enjoy doing? If you can pay your house off, can you work PT and make enough to save enough to build up your pot large enough that it will last you?
I'm about 5 years away from FIRE. I'm figuring out what it is I enjoy doing and weighing some of my options. Do I work PT? Do I go to a tropical country for the winters and perhaps try to tutor English while there. Do I volunteer locally? Do I try to get a FT job that I can keep for a few years to really maximize my investments?
All of us are different. We all have to figure out for ourselves what works best for us.
I wish you the best in figuring out your plan.
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