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Hi Fishes,
How much can I ask from BNY Mellon for the role of Lead Full-Stack Engineer.
My Tech stack: Java, Spring Boot, Microservices, React, Node and AWS
YOE: 7.5 years
CCTC: 23.71L all fixed. Have received MVP bonus of 1.6L EY Tata Consultancy Deloitte Accenture PwC ZS Associates PwC
Please do comment and put your thoughts.
Does LTI provide reimbursement for WFH setup ?
So glad I found this bowl
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Ultimately this is your money and if knowing that you own your home free and clear in more aligned with your values and motivations than go for it! Is it the best move given the current information we have available? No unless you have a super high mortgage rate. But all investments are a bit of a gamble at the end of the day and you should make the decision that is best aligned with your goals and values.
From my experience you really start to feel the benefits of your wealth growing once you pass 2 million. Hang in there a bit longer.
If you’re at 3%… that’s kind of difficult… 4% you’re breaking even… 5% you’re out of the money… at least that’s how I put it…
Agreed. All depends on what the mortgage rate is and if your money can do more for you in investments vs mortgage rate (my mortgage is 2.7% and below inflation so I try to treat it as an asset that keeps getting cheaper while I take advantage of the stock market growth in index funds)
My interest rate is 2.375% and I am on target to pay off my mortgage in 2028. Why? Once you have a paid house, it's yours, the grass feels different under your feet. After that I will double down on investing more. That being said, I am still maxing 401k, IRA, HSA and still throwing some $ in individual brokerage accounts.
Subject Expert
No, I'm pretty sure he also owns the right to live there, rent it out, sell it, renovate it, demolish it and build something else, etc.
I did it for the mental wellbeing. Although we rent our place out. After a childhood of financial instability, knowing I have a paid off property if I need it is very calming
Subject Expert
That does sound calming. Personally I also find my stock portfolio calming. :)
Not motivated by numbers on a screen? Do you understand that those “numbers on a screen” represent actual, real dollars in your net worth? There is no financial reason to pay down a market rate 30 year mortgage. I’d recommend getting over your emotions and make the correct financial decision. If your mortgage is not at a market rate, refinance to a market rate 30 year mortgage.
Subject Expert
Yes. It is generally a good idea to pay off a mortgage prior to retiring. It will in general increase the amount of spending you can do reliably in retirement.
And in general it is a better financial decision to pay off a market rate mortgage than to invest in bonds, so it often makes sense to pay off the mortgage completely well in advance of retirement, prior to gliding from an accumulation allocation down to a retirement allocation.
It could be done all at once or gradually but the timing should be deliberate.
Thanks all! My mortgage is ~5%. I’ve done all the math and modeling but my heart just wants a little nest for myself and then coast fire with whatever job
Subject Expert
If you do that, do the projections say you will be OK?
I’d chase whatever has the highest rate of return… the S&P averaged ~8.91% over the last 30 years… most hosing markets return around 3-4% (unless you got lucky and bought in an area that is now being developed)… but then you have appreciation drag because of your mortgage interest…
So then it becomes a question of total outlay vs total return… and over a 30 year market cycle, investing wins…
But what if the optimization function was included not just returns but also risks (perceived and apparent)? Isn’t that the point of FIRE - to view money as a tool not the end goal? And so if to one person the mental relief from having a home (may not be max on returns, but isn’t terrible by any means) is better shouldn’t we be encouraging that in a forum and community like FIRE?
There are so many unknowns about the next 30 years and I’m a little surprised that I haven’t seen more encouragement within the fire community to live life on your terms even on the road to FIRE, it feels like it’s all about people focusing on hitting their $$$$ number - and we have lost the spirit and rationale behind it along the way
Sometimes doing what calms your mind is the right choice.
For me.
I am paying the normal 30yr mortgage amount since my rate is 3%, and I can ROI more in other areas.
We've just done a couple of projects on that house that were able to get 0% interest. On those paying the minimum payment while stashing the rest for a big final payment at the end of the cycle.
"Extra money" is being invested, since even in this rocky market the long-term should play out in our favor.
I feel the same. Financially imprudent but liberating
Subject Expert
I suggest you model it out. Assume average stock market returns like 5% real and see how much better off you would be in a typical case, at payoff time and at retirement, if you invested vs if you paid off the mortgage now. Remember, you are paying it off either way.
Then you will be able to reflect on whether the psychological benefit is worth it to you, when knowing what you are giving up.
What is the rate on your mortgage? Do you hold fixed income in a meaningful amount in your portfolio?
It could negatively impact your credit after some time