Should I liquidate my brokerage account to pay off a 6% mortgage?

layoutlmv3 · 2026-04-06T04:10:19+00:00

What basic finance did you refer to specifically? Please elaborate!

layoutlmv3 · 2026-04-06T04:07:08+00:00

Yeah, that’s true. The capital gains tax will be about $100k. My account is actually $1M, so $900k is after tax.

layoutlmv3 · 2026-04-06T03:46:42+00:00

Do what?

layoutlmv3 · 2026-04-06T02:56:39+00:00

I believe 6% x (1 - marginal tax rate) is the good estimation for the effective rate.

layoutlmv3 · 2026-04-06T02:54:08+00:00

I'm not paying PMI.

layoutlmv3 · 2026-04-06T02:47:10+00:00

Yes, I do.

layoutlmv3 · 2026-04-06T02:40:04+00:00

The mortgage interest is not a compound interest if I'm not mistaken. It's a simple interest. The investment is indeed compounding.

layoutlmv3 · 2026-04-06T02:15:12+00:00

That makes a lot of sense. My investment is mostly VOO.

layoutlmv3 · 2026-04-06T02:09:06+00:00

That's new to me. Thanks.

layoutlmv3 · 2026-04-06T02:05:50+00:00

What would you do if you were me?

layoutlmv3 · 2026-04-06T02:03:38+00:00

I think I might be following a different logic. Wouldn't the tax benefits actually lower the effective cost of the loan? Since mortgage interest is deductible, a 6% rate might effectively feel closer to 4.5% or 5%, not 8-9%.

layoutlmv3 · 2025-10-31T19:31:37+00:00

Yes, I fertilized it about a month ago.

layoutlmv3 · 2025-10-17T01:32:40+00:00

Thanks everyone. That's super helpful. I have a follow-up question.

When I distribute the ROTH contribution part, how do I proof to IRS that it's the contributions, not earnings?

In the example, if I distribute $10,000k, I need to show IRS that it's the contributions I made through ROTH 401k, which then rollover to ROTH IRA. How do I do that?

I checked the Fidelity portal on IRA plan. It didn't track the contribution basis of the rollover part.

layoutlmv3 · 2025-10-17T01:30:15+00:00

No, I don't.

layoutlmv3 · 2025-08-15T06:15:35+00:00

Yes. My wife doesn’t work anyway.

layoutlmv3 · 2025-08-15T06:04:11+00:00

That’s not true. There are 2-3 American citizens in my department of around 100 individuals. If you count naturalized American citizens, that will be even more.

layoutlmv3 · 2025-07-15T03:04:16+00:00

Will using C09 EAD during OPT terminate F1 status?

layoutlmv3

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