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I am sure this one have been asked alot but i think this might be a tad different.

Retirement savings are close to being on track without social security considered. So we are in a good spot, I plan on still contributing to max 401k and backdoor roth yearly until we pull the plug. In ~8 years we want to retire to asia. Rental income from current home will cover monthly expenses in asia. We will still be many years from taking Social Security but the wife is stressing on having a mortgage. Current mortgage is low 2% and have about 12 years to payoff. If i further accelerate the mortgage with "extra" funds, funneling to it vs extra savings, we can bring down the payoff to 7 years and be debt free going into early retirement. With current portfolios running on avg 9% (currently with downturn factored in). I see the debate for carrying the mortgage for those first 6 or 7 years into retirement.

As of right now current expenses in asia will be 1500-2k (thats factoring rent, food and spending money). Current mortgage is 2k and rental income at todays rate will be 5k so, even if carrying the mortgage we will be clearing 3k month without touching investments.

What does the community think?
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I personally would refinance to a 30_year mortgage now,and continue to invest for the future in the stock market. It is hard to beat the arbitrage of long run market returns compared to a 3% mortgage.



JK
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If your mortgage is currently at 2%, I would not be prepaying any of it. Instead, I would be putting those funds to work so that they would earn more than that 2%. Then when you retire, you can decide if you want to use those funds at that point to pay off the mortgage or continue with the low mortgage payments.

We did choose to pay off our mortgage just before we retired because DH was much more comfortable that way. It has been 2 years now, and I can say that I am happy that we paid it off because it is one less thing that I have to deal with. We already had enough to fund our retirement comfortably, and having more would not have had any impact on our lifestyle. We have enough, and that's all that we need.
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Pretty much the question is because DH is not comfortable still having mortgage, for her to take the plunge she wants it paid off first. Its not like i plan to no longer fund savings. Will still be saving ~35k a year before any matching takes place. Where i am at is there will be ~15-20k more i could fund or use to pay off mortgage. I suppose one other option is to put that extra into savings, then pull it out to pay off mortgage when we decide its time to go. Hadnt given that direction much thought till now.
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Retirement savings are close to being on track without social security considered. So we are in a good spot, I plan on still contributing to max 401k and backdoor roth yearly until we pull the plug. In ~8 years we want to retire to asia. Rental income from current home will cover monthly expenses in asia. We will still be many years from taking Social Security but the wife is stressing on having a mortgage. Current mortgage is low 2% and have about 12 years to payoff. If i further accelerate the mortgage with "extra" funds, funneling to it vs extra savings, we can bring down the payoff to 7 years and be debt free going into early retirement. With current portfolios running on avg 9% (currently with downturn factored in). I see the debate for carrying the mortgage for those first 6 or 7 years into retirement.

I would second the suggestion to not pay any extra on the mortgage unless you actually decide to pay the entire thing off at once. Once you get a year or so out from actually retiring, you can decide to pay off the mortgage, or not, depending on what things have changed between now and then. Until then, having the extra funds not tied up in the illiquid 'home equity' asset will give you more flexibility.

AJ
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Yeah, ultimately what i have decided as well. Appreciate both your input. Things change all the time and its best to put money to use in a fashion that will be better in the long run. Can always make other changes later. Just needed the reminder.......

danke
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