This is the basic strategy (except using bonds, not GICs) espoused by the authors of Your Money or Your Life.
I do think there's a certain amount of "inflation proofing" that we can do to help reduce the impact of inflation and live on less. And it's true that paying off the mortgage removes probably the biggest expense we have in our working years.
Still, though, it's worth going through old magazines and catalogues and looking at prices from 20 years ago, comparing them to what they are now, and projecting that forward 20-30 years or to whatever point in the future we plan to retire.
If you consider that a pair of shoes that costs $80 today might cost, say, $250 in 20 years, and even a used pair of shoes might set you back $150, you start thinking it's worth taking on some risk in order to be able to beat inflation so you don't have to walk around barefoot. Or maybe you could buy a bunch of shoes today and keep them in a closet, waiting for your retirement. That doesn't work so well for other things, though, like milk.
I do think there's a certain amount of "inflation proofing" that we can do to help reduce the impact of inflation and live on less. And it's true that paying off the mortgage removes probably the biggest expense we have in our working years.
Still, though, it's worth going through old magazines and catalogues and looking at prices from 20 years ago, comparing them to what they are now, and projecting that forward 20-30 years or to whatever point in the future we plan to retire.
If you consider that a pair of shoes that costs $80 today might cost, say, $250 in 20 years, and even a used pair of shoes might set you back $150, you start thinking it's worth taking on some risk in order to be able to beat inflation so you don't have to walk around barefoot. Or maybe you could buy a bunch of shoes today and keep them in a closet, waiting for your retirement. That doesn't work so well for other things, though, like milk.