Should You Pay Off Your Mortgage Before You Retire?

October 30, 2023
If you are nearing retirement, does it make sense to pay off your mortgage in advance?
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Recent interest rate increases have inflated the cost of debt, which can have a profound effect on individuals carrying a mortgage on their home but also approaching retirement. Is it beneficial to pay off the mortgage prior to retirement or to continue to make your normal payments of interest and principal each month? Are there other forms of debt that should take priority over a mortgage? As retirement approaches, decisions regarding debt can seem overwhelming, and it's important to consider your individual situation.

On the Season 15 premiere of Financial Decoder, host Mark Riepe speaks with Rob Williams, managing director of financial planning, retirement income, and wealth management at the Schwab Center for Financial Research. They explore the potential benefits and drawbacks of paying off a mortgage early and how that might affect your portfolio leading into retirement.

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