Giving up the existing low mortgage rate matters less and less when the remaining balance is smaller.
If you need $4M in today's dollars to retire, i.e. anticipate spending and taxes in the $150k range in today's dollars, I don't think you are likely to get there in 10 years saving $40k per year. At 5% real, you are likely to have $3.3M in 10 years and $3.7M in 12. 5% real is higher than what I'm using in my own projections, and only you can answer whether you'd be comfortable with a withdrawal rate around 4% retiring in your early to mid 50s. If you are comfortable working a little bit longer or going part time instead of fully retiring, though, you should easily be able to do that.
If you need $4M in today's dollars to retire, i.e. anticipate spending and taxes in the $150k range in today's dollars, I don't think you are likely to get there in 10 years saving $40k per year. At 5% real, you are likely to have $3.3M in 10 years and $3.7M in 12. 5% real is higher than what I'm using in my own projections, and only you can answer whether you'd be comfortable with a withdrawal rate around 4% retiring in your early to mid 50s. If you are comfortable working a little bit longer or going part time instead of fully retiring, though, you should easily be able to do that.
Statistics: Posted by cmr79 — Sun Jul 14, 2024 11:21 am — Replies 6 — Views 499