On May 20, 2009, we
paid off our mortgage and became
100% debt free. Here are some the consequences of our decision:
Overall, we're glad the mortgage is paid off. It's one less thing to worry about as we navigate
our choice of early retirement through these treacherous economic times.
For more on
New Beginnings, check back every Sunday for a new segment.
This is not financial advice. Please consult a professional advisor.Copyright © 2009 Achievement Catalyst, LLC
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7 comments:
Okay, obviously there are cons to paying off debt for everyone, but congrats all the same!
First, let me congratulate you on paying off your debt. How are you going to build your wealth?
Second, Jake says there are cons to paying off your debt for some people. I am always willing to learn. When can debt be good?
@ Chuck,
Thanks and good question.
Currently, I'm working primarily to preserve our wealth, which has been significantly reduced by the stock market decline. For preservation, I am investigating a few post retirement career opportunities that will help reduce our savings withdrawal rates. To rebuild our wealth, we continue to use investing in the stock market, which I still expect to recover in the long term.
Thanks
Second part of question inquired about when can debt be good?
Have you thought of using whole life as and investment vehicle? Just curious.
@ Chuck,
As I wrote in My Personal Experience with Debt, I don't assign the designation of "good" or "bad" to specific types of debt. To me, using debt is an economic decision and that decision may be good or bad depending on a specific user's circumstances. For example, using debt to buy a car may be a good decision for one person but a bad decision for another. Same with a house or college education. That's how I think about it.
On the whole life question, I typcially have kept life insurance and investing separated. When I was working, I purchased term life. I do recall reading about situations when whole life may be beneficial, but the situations didn't apply to me.
Congrats on paying off your debt!
That's a huge accomplishment.
You're way ahead of most people.
Being able to pay off your mortgage is a huge achievement! Yes, it took a lot of sacrifices to get to this point, but you can now rest easy with the knowledge that your house is officially your own. The slump in the economy didn’t make it any easier, which is why you should definitely celebrate your freedom from debt.
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