Ep 5: Andrea Pays Off Properties Early with Cash Flow

In Episode 5,  Andrea asks herself a common question: should I pay off my properties early with extra cash flow?

Plus these related questions:

  • Will paying off properties early lead to achieving financial independence earlier?
  • Will it increase or decrease my net worth?
  • Will that increase or decrease my risk?
  • Will it give me a higher or lower standard of living in retirement?

Let's find out in this variation and how it compares to her baseline  Scenario.

Number of Properties

Total Saved

The inflation adjusted version of the  Total Saved chart.

Net Worth

The  Net Worth chart but adjusted for inflation.

The  Net Worth chart through when  Minimum Target Monthly Income in Retirement (MTMIR) goal first achieved.

The same  Net Worth chart through when  Minimum Target Monthly Income in Retirement (MTMIR) goal first achieved but this one is adjusted for inflation.

Account Balances

The  Total Account Balance chart through the end of the  Scenario.

The inflation adjusted  Total Account Balance chart.

The  Total Account Balance chart through when  Minimum Target Monthly Income in Retirement (MTMIR) goal first achieved.

The inflation adjusted version.

Total Mortgage Balances

Here's the  Total Mortgage Balances chart.

Total Mortgage Payments

Here's the  Total Mortgage Payments chart.

Goals

Here are the  Charts related to the  Minimum Target Monthly Income in Retirement (MTMIR) goal.

The  % of Minimum Target Monthly Income in Retirement (MTMIR) Goal Achieved chart through when  Minimum Target Monthly Income in Retirement (MTMIR) goal first achieved plus a few extra months.

Here are the  Charts related to the  Ideal Target Monthly Income in Retirement (ITMIR) goal.

The  % of Minimum Target Monthly Income in Retirement (MTMIR) Goal Achieved chart through when  Minimum Target Monthly Income in Retirement (MTMIR) goal first achieved plus a few extra months.

Phases of Financial Independence™

The Phases of Financial Independence chart is shown below.