3 Key Factors to Consider Before Paying Your Mortgage Off in Retirement
- 3 Key Factors to Consider Before Paying Your Mortgage Off in Retirement James Conole, CFP® 19:12
Connor plans to retire soon and wonders if he should pay off his mortgage of $300,000 or invest those funds, especially since he has a low interest rate. James gives a detailed response and reveals why there is no one-size-fits-all answer. When it comes to having a mortgage in retirement, math and spreadsheets can help with part of the question, but emotions and personal values should be considered too.
Questions answered:
Should you pay off your mortgage as you head into retirement, especially if you secured a low interest rate mortgage in recent years?
How should you weigh the financial benefits of Investing available funds versus the emotional peace of mind of being debt-free in retirement?
Timestamps:
0:00 – Connor’s question
1:36 – An example scenario
4:51 – Interest rates
6:22 – Tax considerations
9:13 – Tax-adjusted mortgage interest rateÂ
12:13 – Sequence of returns
15:27 – Peace of mind
17:07 – Conclusion
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