Retirement Planning: $1.2M Saves with $185K Mortgage at 4.875%

AI Summary

A couple at age 63 has $1.2 million in savings and an 11-year mortgage of $185,000 at 4.875%. They initially face a withdrawal rate of 7% from their portfolio until Social Security kicks in at age 67, which will lower their withdrawal rate to 2.5%. Their annual budget is approximately $80,000, including a monthly mortgage payment of $1,420. Keeping the mortgage invested could result in annual savings of about $2,081 after taxes compared to paying it off, pending they manage portfolio volatility effectively.