Dip Into Retirement? Sometimes You're Better Off Keeping the Mortgage

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Dip Into Retirement? Sometimes You're Better Off Keeping the Mortgage

Feb, 9th 2017

Sometimes your net worth is better off if you keep the mortgage

Everything has a cost. Conservative investments miss out on earnings. Mortgagees pay interest. Retirement plan participants pay taxes on distributions. It is important to weigh these costs relative to each other when making financial decisions like paying off a mortgage.

Q: I am 59 years old. Currently my retirement pension is $6,500 dollars net a month, with a cost of living raise, for the rest of my life. I am working now and earning $4,100 net a month. I have 11 years to pay off my mortgage at $1,800 a month. I refinanced my mortgage to 3% in 2012. Should I take money out of my tax sheltered annuity, to help pay off my mortgage?

— Stan

A:...

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