Mortgage Payoff Contradiction. Can this be right?

The general rule is that if you can get a better rate in the market than your mortgage rate, invest.

But, there is something about the 4% rule that challenges this. I think. Maybe.

I’ve got an ARM that is at 2.75%. Interest $240, Principle $386. Balance $104,500.

The stache is $586,000 (includes principle on the house of 46,000).

So, by 4% rule, I can draw 23,440/yr. Then, subtracting mortgage payments of $7,512/yr, I am left with $15,928/yr to live on.

Here is where it gets interesting.

Say I take $104,500 from the stache and payoff the mortgage.

This would leave the stache at $481,500. Now, let’s do the 4% rule again.

I could draw a smaller 19,260 from that smaller stache and pay $0 mortgage and be left with the same 19,260 after paying nothing. This 19,260 is larger than the 15,928 I was going to have after the previous draw and paying the mortgage every month.

So, this is a mustachian no-brainer, right?

To me, this defies the laws of finance. I should keep the money invested at 8-11% right instead of paying off a loan that is 2.75%? And yet, it seems that the answer is NO.

Okay mustachian brothers and sisters, do I have this right?

Financial tracking software, outside the States, Mac computer

I am looking for a financial tracking system.  I have a Macbook Air and can no longer use the Quicken 2007 I had on my previous computer.

My bank does not allow software to connect and download account info.

I am not going to be tracking investments right now, but I want to know at the end of each year what I spent with individualised categories and subcategories and to compare to previous years. I was very happy with Quicken 2007 although I had not used it much.

Quicken Essentials has very negative reviews online.  I signed up for Mint however connecting with my bank seemed to be essential to it.

What do you advise?