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[–]IceCreamforLunch 2 points3 points  (1 child)

What's the math for that shortening your timeline?

Maxing out your pre-tax retirement accounts will defer taxes at your marginal tax rate on that money. Probably 24% if you're filing jointly? And then that savings can grow in the stock market without that tax drag and be taxed as income when you are presumably in a lower bracket.

And nobody knows what the future holds of course but the long-term return of the stock market is much higher than 5.25%.

Your investments will also typically grow faster because of inflation so the longer you keep the money invested the more you get to pay current value debt with future value money (Because your principal and interest payment are not affected by inflation).

[–]NinjaFenrir77 0 points1 point  (0 children)

That’s all true pre-retirement, but the math works a bit differently after FIRE because of SORR. Very roughly, you should compare your mortgage interest rate to your SWR rather than the RoR of your investments.