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URL:  http://boards.fool.com/-theres-nothing-wrong-with-having-a-big-30923066.aspx

Subject:  Re: Retiring @ 55 Date:  10/14/2013  11:50 PM
Author:  Rayvt Number:  73586 of 78165

*) There's nothing wrong with having a big mortgage in retirement -- as long as it's a "smart" mortgage. If you pay 4% while earning 8.5% (average) on your investments, then you're making a net 4.5%

Biggest point of contention. An equity investment return is not guaranteed, nor is it linear. Yes, if you could get a higher rate it makes sense, but equities are up one year, down the other, drastically in some cases.


Of course. If you are on a shoe-string you're at risk to get burned. So don't retire early on a shoe-string. Simple as that.

A mortgage is a long-term non-callable loan, so as long as you can make the payments you are fine. It's when you can't make the payment that it all comes crashing down.

The spreadsheet that I posted in a diffe