Should I pay off my mortgage?

Should I pay off my mortgage?
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#1

My wife and I are 65 and are coming into some money that will allow us to pay off our mortgage. Our IRAs are in good shape. We have a cash reserve. We have good monthly income (SS and annuities). We have no debt other than our mortgage (about 12 yrs left on 15 yr/2.99% mortgage - so as of today about $540/month in mort. interest). I’m not inclined to invest the money aggressively and am thinking (even with the mortgage int. tax deduction) I can’t do better than recouping the $540 a month we are paying in interest.


#2

Paying off debt is one of the only ways you can be certain to get a return your “investment”… It’s understandable that you’re uncomfortable investing a large lump sum; so I’d urge you towards paying off your house.
I’d also recognize how you may be able to use your newly-freed cash flow for good use. After making sure your retirement accounts are fully funded each year, perhaps set up some kind of regular deposit to an investment account that will help you replace what you paid into the mortgage, give you the potential to gain returns, and continue building your balance sheet.
Best,
Adam C. Harding, CFP
Disclosure: For informational purposes only. Not to be considered investment, tax, or legal advice. My responses on Nerdwallet are for educational purposes only and action should not be taken until a thorough analysis has been done by me or your financial advisor. Investing involves risk of loss and diversification does not ensure protection against risk of loss.


#3

I agree with Adam Harding’s advise. Paying off your mortgage will provide you with an extra $540 per money, a peace of mind, and increased financial security. Enjoy your retirement!


#4

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