paying off mortgage
i owe 65000, on my town home, I plan to retire 04/27, is it a good idea to pay off my home using my 401K
Terry Says
That depends on your mortgage rate, and your ability to keep paying the mortgage after you retire! If your mortgage rate is over 7%, it might be worthwhile paying it off. Then again, the money you withdraw from your 40l(k) is taxed at ordinary income rates — so you should set aside some money for additional income taxes. And if you’re already on Medicare, a big jump in income in one year could increase your Medicare premiums!
Sorry, but I can’t answer this question without a lot more knowledge. Maybe it’s time for you to visit once or twice with a fee-only FIDUCIARY advisor to go over your entire retirement income and tax situation. Watch this video.
