🔺 r/personalfinanceuThroneAvvay·65 days ago
Sanity check - pay off mortgage with inheritance?
41M here with my 40F wife, no kids. We live in a HCOL area in the US. I'm full-time employed as a physician, she's part-time retail. I am looking to downshift my career shortly due to burn out. We've had a windfall inheritance about 5 years ago from my FIL's unfortunate passing, about $1.2mil in an IRA. My understanding is that we must fully distribute an inherited IRA within 10 years, or face excise penalty. Luckily, this inheritance has gained ground with the bull market since Covid and the AI frenzy. Our only debt is a BIG mortgage ($700k). Mortgage interest rate: 6.25% ARM, locked for 7 years until 2030 then subject to change Monthly mortgage payment: $6,051.64 My question is this: Would it be wise to use the inheritance that must be distributed within 10 years to pay off our mortgage? We owe $700k on our home mortgage. It is our dream home and we would love to spend many happy years here. Paying this off would DRAMATICALLY reduce our monthly spend and allow me to downshift my career. We won't be in a position to retire, but I could maneuver to a position that would be less stressful (there's lots of demand for my position). It kinda feels like I'm trying to "time the market".…