Good info for those soon to retire

[rsm]

or early in retirement. It goes against conventional wisdom.

If you think a paid off mortgage is a good idea, he presents an example where it's not. However, if you have a 6-figure "emergency fund" cash reserve it really doesn't matter at that point.

Toward the end of the video, he provides a good checklist to manage your taxes strategically in the years before RMD age.






if you're a libtard, don't worry about it.

 

[70 Mach 1]

I'll get to the vid later
Have a big bill left on my mortgage and about 7 yrs
Been sending the shylocks $100 more a month to work it down

Have 4.5% interest

I have the funds to pay it off

My financial advisor gave me this to think about

1. I'll lose my tax write off.
2. They already got all their interest.
Let them wait for the balance.
3. If i feel i can do better investing that payment in the market then do it

The SP500 is earning more than 4.5% annually.

I can do a payoff in 2028 and just invest it.
I want to see if we end up with a couch in DC before i make up my mind.

Couches and the market are an inverse relationship

 

[JackTripper]

A house is an irrational investment if you think about the opportunity costs of your money. It becomes an emotional investment when you add in wife and kids, etc.

Paid off a 2.75% mortgage years ago (had maybe a couple years left on it). As a financial decision, it wasn't that smart. But in terms of peace of mind, it's worth it.

That vid cracks me up. A Gen Z'er discussing retirement advice is a hard sell for me. Now Tom Selleck, he can sell me a reverse mortgage any day of the week.

 

[rsm]

I'll get to the vid later
Have a big bill left on my mortgage and about 7 yrs
Been sending the shylocks $100 more a month to work it down

Have 4.5% interest

I have the funds to pay it off

My financial advisor gave me this to think about

1. I'll lose my tax write off.
2. They already got all their interest.
Let them wait for the balance.
3. If i feel i can do better investing that payment in the market then do it

The SP500 is earning more than 4.5% annually.

I can do a payoff in 2028 and just invest it.
I want to see if we end up with a couch in DC before i make up my mind.

Couches and the market are an inverse relationship

every year, you're also paying with weaker dollars. One 2026 US Dollar with be worth between $0.88 and $0.91 cents in 2030.

having the cash reserve or as in the video a HELOC, gives you a safety cushion for unexpected large expense so you don't have to liquidate investments to cover.

Loans are not taxable, but you have the interest and principal to pay back...if you have some dividend income producing assets in a taxable brokerage account for over 1 year, that's taxed at long term capital gain rates and can be used to pay down your loan over time...this works well as long as your ROI is greater than the loan interest rate + inflation.

I have cash set aside, including a bucket for emergencies; I don't have a HELOC due to the higher rates. Instead 'm funding a SBLOC instead, which have lower rates than HELOCs,.

 

[rsm]

A house is an irrational investment if you think about the opportunity costs of your money. It becomes an emotional investment when you add in wife and kids, etc.

Paid off a 2.75% mortgage years ago (had maybe a couple years left on it). As a financial decision, it wasn't that smart. But in terms of peace of mind, it's worth it.

That vid cracks me up. A Gen Z'er discussing retirement advice is a hard sell for me. Now Tom Selleck, he can sell me a reverse mortgage any day of the week.

a paid off mortgage can provide "peace of mind" which some value; I value growth and income more. Even with a paid off mortgage, miss a few years of property tax payments...

I have cash to pay off my mortgage if the numbers make sense. If I know I'm dying, paying off my house will make sense for my heirs who will inherit it at a stepped up basis without worrying about mortgage payments; for example.

 

[Alpha Stryke]

The "American Dream" isn't a 30 yr mortgage. Least not in my marriage and certainly not in this economy.

 

[rsm]

The "American Dream" in 2026 is deporting all illegal invaders, holding government traitors accountable, and opening up the insane asylums for all the hateful, violent, unhinged libtards.

 

[Geo]

or early in retirement. It goes against conventional wisdom.

If you think a paid off mortgage is a good idea, he presents an example where it's not. However, if you have a 6-figure "emergency fund" cash reserve it really doesn't matter at that point.

Toward the end of the video, he provides a good checklist to manage your taxes strategically in the years before RMD age.






if you're a libtard, don't worry about it.

This is absurd for many reasons.

Paying 900k for a 300k loan is money you will never see again.

Using the money you would have paid in interest on a mortgage to invest making at least 7-8% percent as the video says.

So, paying the extra 1k a month for mortgage interest is good how again?

 

[70 Mach 1]

every year, you're also paying with weaker dollars. One 2026 US Dollar with be worth between $0.88 and $0.91 cents in 2030.

having the cash reserve or as in the video a HELOC, gives you a safety cushion for unexpected large expense so you don't have to liquidate investments to cover.

Loans are not taxable, but you have the interest and principal to pay back...if you have some dividend income producing assets in a taxable brokerage account for over 1 year, that's taxed at long term capital gain rates and can be used to pay down your loan over time...this works well as long as your ROI is greater than the loan interest rate + inflation.

I have cash set aside, including a bucket for emergencies; I don't have a HELOC due to the higher rates. Instead 'm funding a SBLOC instead, which have lower rates than HELOCs,.

But also my house is worth a fortune.
Paid $155 in 1998. Put $275 into gut remodeling job in 2008

Comps in my part of long Island are $1.2m range

So if it cost me a big bill to pay it off i still have about $1.1 in equity

Cant retire on that but i can go down south and build a new house on 2 acres for $450 cash

No mortgage and i wont be paying $12k in long Island taxes

 

[Geo]

If you are in this guys financial position it would be wise to open a HELOC regardless if you paid your mortgage off.

 

[84superchamp]

A house is an irrational investment if you think about the opportunity costs of your money. It becomes an emotional investment when you add in wife and kids, etc.

Paid off a 2.75% mortgage years ago (had maybe a couple years left on it). As a financial decision, it wasn't that smart. But in terms of peace of mind, it's worth it.

That vid cracks me up. A Gen Z'er discussing retirement advice is a hard sell for me. Now Tom Selleck, he can sell me a reverse mortgage any day of the week.

One of my goals before retirement was a paid-off mortgage, which i did. My goal now is keeping the govt paid off so they don't steal it back (property taxes).

 

[JDs Couch]

One of my goals before retirement was a paid-off mortgage, which i did. My goal now is keeping the govt paid off so they don't steal it back (property taxes).

Good job man! I paid off my mortgage before age 40. It's a great feeling.

 

[84superchamp]

Good job man! I paid off my mortgage before age 40. It's a great feeling.

Just got my new property assessment from the county, a $22,000 increase from last year. It's now robbery.

 

[JackTripper]

If you are in this guys financial position it would be wise to open a HELOC regardless if you paid your mortgage off.

I agree, instant liquidity. If you get caught in a prolonged down market and you need to avoid sequence risk, it's a good back-up plan until the market recovers.

 

[JackTripper]

One of my goals before retirement was a paid-off mortgage, which i did. My goal now is keeping the govt paid off so they don't steal it back (property taxes).

Same here. Property taxes are the gift that keeps on giving. My plan is to eventually relocate to another state with lower rates. Problem solved.

 

[JackTripper]

But also my house is worth a fortune.
Paid $155 in 1998. Put $275 into gut remodeling job in 2008

Comps in my part of long Island are $1.2m range

So if it cost me a big bill to pay it off i still have about $1.1 in equity

Cant retire on that but i can go down south and build a new house on 2 acres for $450 cash

No mortgage and i wont be paying $12k in long Island taxes

Sounds like your house might be under assessed for local property taxes, which is a good thing. Don't forget capital gains.

 

[JackTripper]

I have cash to pay off my mortgage if the numbers make sense.

That's what it came down to. I did it in 2020 and it made sense even with a low rate. Fixed assets at the time were paying much less, already heavily exposed in the market (which was still volatile at the time), and we cancelled a bunch of vacations because of COVID so we had extra cash.

 

[rsm]

That's what it came down to. I did it in 2020 and it made sense even with a low rate. Fixed assets at the time were paying much less, already heavily exposed in the market (which was still volatile at the time), and we cancelled a bunch of vacations because of COVID so we had extra cash.

covid was a great time for bargains in the market vs paying off my mortgage from my perspective. We had another short one with the "tariff crash" in April 2025, providing more market bargains.

I'm waiting for the next big market decline / crash for the next round of bargains. Hopefully before 2028.

 

[JackTripper]

covid was a great time for bargains in the market vs paying off my mortgage from my perspective.

It was and I jumped in as well for opportunities. Been doing that since the 90s. Being a data guy, there was no historical comparison for COVID, so I hedged and split what I had at the time and paid off the mortgage first and then invested balance. In retrospect, the better play would have clearly been to go full in the market. But again, peace of mind. I blinked.

 

[rsm]

It was and I jumped in as well for opportunities. Been doing that since the 90s. Being a data guy, there was no historical comparison for COVID, so I hedged and split what I had at the time and paid off the mortgage first and then invested balance. In retrospect, the better play would have clearly been to go full in the market. But again, peace of mind. I blinked.

all good; the worse thing would have been to miss out completely when the market offers bargains. it's why I try to keep some cash aside beyond emergency funds.

Buffett's long time partner Mynger said on many occasions (paraphrased) that timing the market is a a fool's errand and doesn't matter; wht matters is being in a position to take advantage of opportunities when the market provides them.