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My current mortgage has 10.5 years to go on a 15 year note & is 4.74% fixed rate and term; I am in 25% marginal tax bracket and age 66. Home covered by this mortgage is wonderful and I hope to never live in another, although I also own (mortgage free) a "seasonal" home in Florida. Am pessimistic about stock market and have all savings in 90 & 180 day US Treasuries plus I-series US savings bonds. Disbelieve in bank deposits and CD's even if FDIC insured. Have no credit card debt that is not paid monthly in full. Have no other debt. Credit score is 833. Since current US Treasury earnings are about 3% gross or 2.25% after tax, and current mortgage costs about 3.56% after tax, it seems like a no brainer to pay off current mortgage in full (which I can do in cash from savings), thereby improving cash flow and possibly falling into a lower marginal tax bracket (due to loss of taxible earnings on savings but not having a mortgage payment). Would rather protect principal and earn nothing on it, than invest at risk for a few percent, as current income is more than adequate. If I do this, I will still have nominal savings, same or even higher income (since no more mortgage payment) and no debt of any kind. Income comes from government pensions (about 65%), Treasuries (about 5%), owned businesses (about 30%). Intend soc security at my age 70. Your advice?
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