Tuesday, August 4, 2009

It’s better to pay off your mortgage when you are still working

Gone are the days when most of us ended debt free or without any mortgage by the time we retired but times have changed for the worse and most of us who retire today end up with mortgage on our heads.

As per Boston College Center for Retirement Research report, it would be good if you pay your mortgage rather than drag it into retirement or if you cant then another option would be to set aside money in taxable or tax deferred account for the purpose.

In the current environment you must consider that a mortgage pays better return on the money as compared to other risk free assets. It’s better to write a check to the lender rather than stack up those investments which could lead a lot of grey hair for you.

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