Mortgage Payoff With Retirement Funds
Looking for some guidance on our situation as it relates to paying off our mortgage with a portion of our 401K and other retirement accounts.
- Current value of our primary residence is around 750K (Southern California). Mortgage is around 240K @ 4.75 with around 9 years to pay off.
- We also own a condo in Palm Springs. There is no note on the condo but we have line of against the above primary residence of 86K which was used to purchase and remodel the PS Condo. The value of the condo is around 150K.
- I turned 60 in December 2011 and my wife is 49. We both have steady professional jobs and work for multi-billion dollar companies.
- Mine is new construction related so business will remain sketchy for the balance of my career(5 years) but only 30% of my 100K compensation is commission based.
- My wife makes around 150K a year with 115K being salary the balance being quarterly bonuses.
- I plan to retire at 65(sooner if possible) Id like to see my wife retire around 59 so we can enjoy things before "old age" sets in on me.
- We have no long term debt other than the $240K mortgage and line of 86K credit.
- Credit cards are paid to zero balance each month.
- Liquid cash runs around 50K in savings. It seems like we have frequent family financial situations we end up supporting. Otherwise, we would have a stronger savings account.
- Currently we have the following retirement funds tucked away:
- My 401K = 311K plus a company pension of around 54K which currently has an estimated payout of $425 per month at age 66 or 67.
- My wife has several 401K funds:
- Current Employer 401K = 120K
- Prior Employer # 1 = 57K (no active contributions being made)
- Prior Employer #2 = 125K (no active contributions being made)
- Prior Employer #3 = 175K (no active contributions being made)
- Together we have three other stock investment funds totaling around 71K. (no active contributions being made)
- All totaled our nest egg (excluding the house value) is around 926K.
Since we have always been of the "no mortgage is a great thing" mind set, we are wondering if given the combination of remaining 10 plus working years my wife has and our combined portfolio of 401K and other funds, does it make sense for us to consider paying off the 240K mortgage by using some combination of funds from these retirement accounts? We want to feel the fresh air of no mortgage debt.