I really think that it truly depends on each individual situation, there are pros and cons to maintaining a mortgage and to pay it off completely. It depends on individual goals. Here are a few key points from the article:
Whether the positives outweigh the negatives, or vice versa, depends in large part on the retiree's financial situation.
The biggest disadvantage to carrying a mortgage balance into retirement is it obligates a retiree to make monthly payments on that debt.
A retiree on a fixed income is especially susceptible to the dangers of owning an underwater home.
Mortgage interest is tax-deductible.
Strategic debt - keeping a mortgage balance at a low interest rate to free up funds to invest at a higher rate. The only caveat to strategic debt is not to get greedy and over-leverage.
Most experts recommend limiting debt to no more than 30% of total assets.
The biggest disadvantage to carrying a mortgage balance into retirement is it obligates a retiree to make monthly payments on that debt.
A retiree on a fixed income is especially susceptible to the dangers of owning an underwater home.
Mortgage interest is tax-deductible.
Strategic debt - keeping a mortgage balance at a low interest rate to free up funds to invest at a higher rate. The only caveat to strategic debt is not to get greedy and over-leverage.
Most experts recommend limiting debt to no more than 30% of total assets.
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