7 Times You Should Not Pay Off a Mortgage Before Retiring
Low Mortgage Interest Rate: If your mortgage interest rate is low, especially lower than the average return on investments, it might make more financial sense to invest your money rather than pay off the mortgage early.
Lack of Liquidity: Paying off your mortgage could tie up a significant amount of cash, leaving you with less liquidity for emergencies
Tax Deductions: Mortgage interest can be tax-deductible, reducing your taxable income. Paying off the mortgage early might increase your tax burden
Higher-Interest Debt: If you have other debts with higher interest rates, such as credit cards or personal loans
Investment Growth Potential: If you can earn a higher return by investing in the stock market, real estate, or other vehicles
Retirement Savings: If paying off your mortgage early would deplete your retirement savings, it could jeopardize your financial security during retirement.
Employer Matching Contributions: If you’re not fully taking advantage of employer matching in your retirement accounts, it’s wise to prioritize these contributions over paying off your mortgage
Anticipation of Relocating: If you plan to move or downsize shortly after retirement, paying off the mortgage might not be necessary
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