Q. I am considering paying off my mortgage before I retire, but at the expense of my TSP catch-up. I know every case is different, but are there general rules of thumb for this scenario. If you need some specifics: seven years to retire and I save $51,000 in interest payments (6.125 percent annual rate).
A. There are no rules of thumb that I would trust for this decision. You’ll have to grind out the math for the alternatives, including some predictions about the future, to decide. I will say that without further knowledge of your circumstances, I would tend to favor keeping a competitive fixed-rate mortgage and continuing the TSP contributions unless a competent analysis clearly demonstrates a better alternative.