Quote:
Originally Posted by Hawkeye
This is why it is recommended to get a term insurance policy when you have large debt... so you don't have to worry about throwing every penny at a loan and you can worry about other stuff.
Being 50 makes your expected investment horizon a little shorter than would be optimal for an all market portfolio (expecting you will want to retire in your early/mid 60s). I feel like my investments will beat out my interest rate on my loan, probably with just inflation alone.
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Being 50 should not shorten the horizon which would be to end of life, or beyond if you are planning to leave your assets to a spouse or heirs. This is a common error in retirement planning. With a balanced portfolio (and some rebalance may be appropriate as retirement approaches to generate more cash income although selling cap gains is a better tax strategy than dividends/interest), retirement becomes essentially irrelevant to the analysis.
What does matter is cash flow. If retirement creates a cash flow deficit then you might be over leveraged or too early to retire and lose work income.