Question: Should I pay off my mortgage while paying a 22% tax on my IRA withdrawal? That would mean betting on the IRA outpacing the 3.62% interest on the mortgage.
“Question: Should I pay off my mortgage while paying a 22% tax on my IRA withdrawal? That would mean betting on the IRA outpacing the 3.62% interest on the mortgage.”
No. Do not pay off the mortgage. A conservative, balanced portfolio (50% equity, 50% fixed) should easily beat a 3.62% return over the long haul.
I would not pay off your mortgage of 3.62%. If inflation exceeds 3.62%, that is free money. Plus, if the SALT deductions return in some form, that will be a bonus even if inflation does drop.