ST. CROIX INSIGHTS

Don’t Retire with a Mortgage.

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

retire with a mortgage

This lesson is a short one, but that’s because it’s simple: don’t retire with a mortgage.

Other financial advisors might disagree with me on this. They might tell you about the great interest rates, they might highlight the tax deduction benefits, yada, yada, yada… but they’d be wrong.

As far as I’m concerned, the question of whether or not to wait to retire until your home is paid off boils down to one simple fact: debt sucks! Why deal with the burden of a major monthly payment when you’re on a limited income?

Don’t retire with a mortgage!

I don’t care about the interest rate, the tax deduction, or any of the other “benefits” you’ll hear about; it’s just noise. Take my advice and don’t retire with a mortgage—period. Your future self will thank me for it.

Investopedia has some sound information on the matter as well: Part of the appealing retirement scenario involves bidding farewell to that monthly mortgage payment, assuming it’s cleared by then. However, a recent shift in financial planning suggests many experts advise retirees to keep a mortgage throughout retirement. By reinvesting home equity, you could generate additional income, brightening your golden years.

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

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