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Old 02-08-2013, 12:09 PM   #14
KrisM
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Join Date: Aug 2006
Posts: 2,180
Re: When the house is paid off... then what?

If you only had $5000 in interest, and are in the 30% bracket, you saved $1500 on taxes. At the end of the mortage, you pay very little in interest. We paid $3200 in interest this year .

We have 2 years left and will have about $1500/month to work with. I plan on increasing retirement from 15% to 20%. I plan on beefing up the car replacement fund, the house improvement fund, and our emergency fund. Right now, we have enough for the next car, but are not adding to it. And, we have enough for a basic kitchen remodel, but have other things on the list to do. We have 6 months expenses saved, but would increase it to 9 months.

How old are you? Based on a rule of thumb, you should have about .5 times your annual income in retirement at age 30, 1 times at age 35, 2 times at 40, 3 times at 45, etc. If you're not close to that, maybe concentrate on increasing that?
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Kris
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