Mortgage paid off

The planner offers plenty of flexibility and can handle many complicated real-world scenarios, but sometimes it can be tough to figure out how to do it. Check out this forum for discussion of how to model things like selling a house, long-term care expenses, and much more.
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rsn010
Posts: 1
Joined: Wed Feb 12, 2020 1:01 pm

Mortgage paid off

Post by rsn010 » Wed Feb 12, 2020 4:43 pm

In the future, our vacation home will be paid off saving us about $111,000 per year. I have input this as misc income on the expected date to the end of plan since it is an annual savings. Is this the best way to handle? If so, I assume that I can model an early payoff in the same manner. Thx.

jimr
Posts: 558
Joined: Thu Feb 28, 2008 6:48 pm

Re: Mortgage paid off

Post by jimr » Wed Feb 12, 2020 5:43 pm

Using an extra income cash flow to track an expense going away seems like a roundabout way to handle that.

If I'm understanding you correctly, it might be clearer to deduct the annual mortgage amount from your overall annual retirement expenses, then trck the mortgage expense separately using an "other expense" cash flow in additional inputs that starts at retirement and ends when you expect to pay off the mortgage.

Tanker_62
Posts: 5
Joined: Tue Feb 25, 2020 2:34 pm

Re: Mortgage paid off

Post by Tanker_62 » Thu Feb 27, 2020 3:35 am

Thanks for the explanation, I'm not the OP but I'm finishing to pay off my mortgage in September this year, so I'm in a similar situation.

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