I just recently retired at age 60, have $130,000 in savings and sufficient funds in my 401 for retirement. My current source of income is a $4,600 per month pension. My wife plans to retire next year. She makes $150,000 a year. Our only major debt is our house mortgage which we owe about $60,000.
Debt itself is neither good nor bad, said Larry Luxenberg, principal at Lexington Avenue Capital Management. Debt only becomes bad when there’s a lot of it at a high interest rate and it is a struggle to pay off. “I would say that 90% of the time, paying off the mortgage provides more of an emotional satisfaction than a financial benefit,” said Laurie Nardone, managing principal at Shira Ridge Wealth Management. “With mortgage rates so low, and possibly still a viable tax deduction, it can often help their entire financial situation to keep a mortgage.”
There are a few factors you should consider before determining if having a mortgage in retirement is a “bad thing,” said Kevin Gahagan, an adviser and principal at Private Ocean, such as: are the payments affordable ; is it “productive debt,” meaning is it building your equity?; how does the mortgage benefit you at tax time, such as any tax deductions it may offer; will keeping your savings in your possession give you financial flexibility should you need it?; and how much time do you have left...
Also see:I’m a 32-year-old stay-at-home mom, and my husband earns $150,000 a year. Will I ever be able to enjoy a retirement?
Silver go! Lots of the stuff needed in electric cars and all our smart phones (and solar panels)
Why payoff mortgage at under 3%?
Makes no sense to me ? Saved a lot but has a mortgage - Non sequester. Unless there is some tax benefits. Otherwise you get debt free, then you save/invest.! In that order. Ask Susie Orman.
How about downsizing ? Would anyone ever consider that as a viable option during retirement?
Yes. Then you can YOLO the other $70k on weekly SPY options
Pay 30k and invest the other 30k into cruise/airline stocks and Tesla. By next year he should hAve another 130k?