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      09-25-2021, 10:19 AM   #20

Drives: Potato
Join Date: Feb 2012
Location: USA

iTrader: (1)

Originally Posted by zx10guy View Post
I sat down with my financial advisor and he worked some numbers to show what my life would be in retirement. I hadn't even thought about what my tax situation would be in retirement. He did this as a way for me to proactively control what tax bracket I would fall under so I can start thinking of ways to position myself instead of just letting it happen. So the reason why I'm looking to pay off my mortgages even though they're all fixed rate and low interest is because it'll make up a good chunk of my expenses into retirement. If I have them paid off, I don't have to draw that amount out of my retirement accounts which then would be taxable as income. I can keep my draw rate low which then keeps me in a lower tax bracket due to lower annual income. And the side effect is leaving more in my accounts to continue to work towards growth.

Hopefully, what I said makes sense.
Makes sense. I was thinking if you can earn more in the retirement accounts than you pay on the mortgage, it makes sense to keep the mortgage (especially if the earnings are tax deferred). But you have to be confident in your investment earnings because they are variable and the mortgage is fixed.

BTW Iím retired. I donít think the analysis changes because of that, it would if I planned to die soon but I could go another 30-40 years.
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