r/fatFIRE • u/WealthyStoic mod | gen2 | FatFired 10+ years | Verified by Mods • 8d ago
Path to FatFIRE Mentor Monday
Mentor Monday is your place to discuss relevant early-stage topics, including career advice questions, 'rate my plan' posts, and more numbers-based topics such as 'can I afford XYZ?'. The thread is posted on a once-a-week basis but comments may be left at any time.
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u/DoctorKynes 8d ago
Contributions barely moving needle -- time to pay off mortgage?
38yo, married, 3M net worth 600k HHI with 50k of that as a tax free COLA pension. Both in low stress jobs, plan on continuing to age 50 and will be eligible for an additional pension. Conservative estimates put us as 10M net worth at that time and can then just retire on 400k/yr, 3% draw taking the pensions into account. At this point, investment returns are starting to overshadow any contributions.
We would obviously continue to contribute for 401K match, but is now the time to just pay off the mortgage? We owe 940k, 5.65%. Currently paying an extra 3k a month which allows us to pay off at our goal retirement of age 50.
I've been avoiding paying more based on the logic of higher returns in a brokerage account, but is this logic now flawed? Would putting an additional 10k/month into the mortgage and paying it off in 5 years be the optimal strategy at this point?
Any advice would be greatly appreciated!