Want a good retirement? Pay off that mortgage loan first
3rd August, 2009 - Posted by admin - No Comments
Retirement presents a whole new set of challenges. Many of the big ones are financial: Will you have enough money to pay off your bills? Will you have enough to meet any unexpected money challenges that pop up?
Then there's the mortgage question. According to a story by the Boston College Center for Retirement Research, a growing number of homeowners are retiring while still paying their monthly mortgage bills. Is this a bad thing? Yes, according to this story on NJ.com.
According to the Boston College study, four in 10 households aged 60 to 69 in 2007 had a mortgage. Of these, one in two had enough money on hand to pay that mortgage down.
It makes sense to pay off that mortgage if possible. What if an emergency strikes after you've retired? Wouldn't you like to be free from the burden of that monthly mortgage payment?
Some households, of course, choose to invest their extra money rather than use it to pay down a mortgage loan. Financial experts say this is a mistake. It's far better to relieve yourself of extra debt before retiring.
So do yourself a favor. If you can pay off that mortgage — even if it means selling off some of those investments of yours — do it. You'll then enter retirement without one of your biggest debts hanging over your head.
Posted on: August 3, 2009
Filed under: becoming a better borrower
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