Mortgage Killer Accelerator

Strategy 75 of 107 · new for the five-year plan

Sell vested employer shares you already own

Depends on markets or variable ratesFrom an asset you already ownFive-year size: can carry most of it

Educational only. I am currently not licensed to offer or sell securities. Figures are hypothetical, not guaranteed. The risk is real: you can lose money, including principal, and a loss can change your lifestyle. Not an offer or recommendation.

What it is

List shares that are already vested and yours.

Steps

  1. List shares that are already vested and yours.
  2. Having a big part of your wealth in the same company that pays you is a double risk; selling some reduces it.
  3. Send the after-tax proceeds to principal.

Repeat: Each time shares vest.

Measure: After-tax proceeds.

Try it in the calculator Enter its amount in "One-time amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • The stock can rise after you sell.
  • Holding periods change the tax; check the plan's rules and blackout dates.

Who it fits

Higher earners, Higher net worth, with assets, Married couples, Single

Needs

Owns vested employer shares

How predictable

Depends on markets or variable rates

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (higher earners). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: list shares that are already vested and yours.

Suppose it brings a one-time $100,000 on principal. The loan would be paid off in 13 years 1 month instead of 30 years, saving about $285,309 in interest. To finish in five years, they would still need about $2,017 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sequences that use it

Sources and more information

Where to get help

Related strategies

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