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At the 4% withdrawal rate, it takes $225,000 in your portfolio to generate $9,000 per year. So, if you pay the house off early, you have eliminated the need for that $225,000 to sustain your lifestyle ...

Just to add a bit more accuracy for those who want to use such a calculation, the withdrawal rate may be significantly higher than 4% to cover a mortgage payment which ends in N years. (if N is 10, then it is something like 7% or so, for N of 30, it is closer to 4%)
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