This is not the age old question of whether to pay off the mortgage or invest the lump sum. We refinanced during pandemic at 1.99% (15-year). Balance is only about $350k. The payments are about $3k /mo for another 140 months. It’s a no brainer. We’re keeping the mortgage. But we’re about to retire and want to set aside the money for the mortgage payments in a separate account from which we can auto-pay it. We think that will give us the same amount of relief as actually paying it off.
What I am trying to figure out is:
1. How much to put into this fund - Does anyone know of an online calculator for this? It’s not straight net present value, is it? I understand that I should overfund it, or be prepared to supplement it if the market disappoints.
2. How to invest it - Given the earmarked expense, VUSXX? Or VTI because it’s >11 years and we can easily cash flow it in a recession.
Thanks in advance for the advice.
What I am trying to figure out is:
1. How much to put into this fund - Does anyone know of an online calculator for this? It’s not straight net present value, is it? I understand that I should overfund it, or be prepared to supplement it if the market disappoints.
2. How to invest it - Given the earmarked expense, VUSXX? Or VTI because it’s >11 years and we can easily cash flow it in a recession.
Thanks in advance for the advice.
Statistics: Posted by Plano — Wed Jul 10, 2024 7:34 pm — Replies 5 — Views 470