Thanks, Andre! A mostly unrelated question, and you’ve probably covered this somewhere else before, but do you include taxes in your target Enough Number/3% withdrawal rate?
I didn’t explicitly include them in the core 3% calculation. I went back and did a deeper account level analysis that incorporated them fully in this post and 3% is so conservative that it didn’t impact the survival: https://www.faangfire.com/p/enough-in-san-francisco-what-about-taxes
I paused all taxable investments and am paying off mortgage. Considering the investments are long term, 20% fed + >12% state is still a lot of stress and monitoring compared to paying off a 5% mortgage.
I like that plan of tackling more of the mortgage before going hard on your mortgage payoff.
There is a lot of nuance and I don't want people pausing all their retirement contributions or giving up free employer matches/espp. The details, amounts, and specific cash flow needs matter a lot.
That flow chart is bomb.
Being boring is so underrated
Super underrated.
Thanks, Andre! A mostly unrelated question, and you’ve probably covered this somewhere else before, but do you include taxes in your target Enough Number/3% withdrawal rate?
I didn’t explicitly include them in the core 3% calculation. I went back and did a deeper account level analysis that incorporated them fully in this post and 3% is so conservative that it didn’t impact the survival: https://www.faangfire.com/p/enough-in-san-francisco-what-about-taxes
What interest rate makes a debt high interest debt?
5-7%+ generally. However the type of debt matters here too. I wouldn't pause all investments if it was a home mortgage.
Why not home mortgage?
I paused all taxable investments and am paying off mortgage. Considering the investments are long term, 20% fed + >12% state is still a lot of stress and monitoring compared to paying off a 5% mortgage.
I like that plan of tackling more of the mortgage before going hard on your mortgage payoff.
There is a lot of nuance and I don't want people pausing all their retirement contributions or giving up free employer matches/espp. The details, amounts, and specific cash flow needs matter a lot.
Right. It's all a trade off for personal preferences.