No. of Recommendations: 2
Rayvt wrote:

I....never looked at it this way before. I'm glad we had this discussion. Now I am even more solidly convinced that we made the right decision to have a mortgage in retirement.

Thanks for engaging me in this topic as well as pointing me to read strategies that Ric Edelman suggests. In addition to Ric, I spent most of the day reading things like this...

You're a Fool to Prepare Your Mortgage

This has been one of the debates that have existed though the ages. It’s right up there with “Is there life after death?” “What’s the meaning of life?” and “Should I have children?”

https://investorjunkie.com/13979/fool-prepay-mortgage/

With the cost of capital via a 30 year fixed mortgage being so low, I can see the value of utilizing that strategy as our true interest rate cost - based on figures I ran with the interest deduction - could be more in the 2.7 - 2.92% range. As has been mentioned by several in this thread, there is no guarantee of getting a better return than that with the capital. However, over the longer term (30 years), I do like the historical odds.

I admit to having never even thought about this before. Why? In the back of our minds we were more or less dead set on just paying off the mortgage so all we had to worry about were the taxes, and repair/maintenance costs of our home. There could indeed be some residual effects of group think involved in that focus which stemmed from our own respective families, as well as years of reading the Boglehead.org forums.

It's been a whirlwind year to 18 months already due to becoming empty nesters, three deaths in our families, absorbing inherited annuity windfalls by increasing our pre-tax deductions to the max as a strategy to move tax deferred money from one place to another, and now thoughts of utilizing a different mortgage strategy than we originally had thought.

Needless to say, I am certainly interested in making sure our capital is working for us in the best way possible.

Thanks to all who responded to my OP. Updates with our decisions once they are made and carried through...

BB
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