Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I still believe that my scenario is "safer" for someone in the intermediate stage of still working and not having accumulated the full amount necessary for a "safe" withdrawal of 4% during retirement. But, for someone already retired, a paid off mortgage makes more sense since it reduces the amount needed for a safe 4% withdrawal.

Not everyone relies on their investments for their retirement--some of us have decent pensions. My pension plan's payout would be equivalent to getting a pay raise the day I retire, so I wouldn't need 25 times my annual mortgage payments to be able to safely handle the mortgage. In fact, I wouldn't need any of my investments once I retire in order to afford my mortgage.

Of course, different people's situations are different; I just happened to luck out working for an employer that offers a great retirement plan and have already put 20 years of duty into that plan.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.