Ask Terry Questions Pay mortgage vs Save

Pay mortgage vs Save

By Terry Savage on April 16, 2024 | Financial Planning / Retirement

My husband is 65 and working, I am 64 and have opted for early SS at 62 . We have approximately 4 million in our Pension Plan. A person Merrill Lynch account with almost 1K and Roth Ira Accounts worth 200K. 2 Treasury I Bonds worth 40K. Our home is on the market presently for 3,975,000 of which we owe 275,000 @ 2.72%. We will be moving from Wilmette to Connecticut as soon as the Business sells and the house sells. We do have Chicken Money, 50K. Should we pay off the Mortgage? Save addition Chicken Money or invest more with Merrill.
I listen with great respect to you on WGN. THANK YOU!

Terry Says

Whew, you need a fee-only FIDUCIARY advisor you can trust. You needed some advice a few years ago. The greatest mistake each of you made was taking SS early — costing you almost 80% of your base benefit!!
Second, you have a lot of money in your “pension plan” — but is that a 40l(k) from work, which you can roll over and invest? Or is that just a guaranteed traditional defined benefit plan that will pay your husband (and also you) for your lifetime?

Third, NO ONE willingly pays off a 2.7% mortgage — so your question reveals so much about your lack of financial sophistication. I’m afraid of you falling into the wrong hands with the cash from your home sale — and with the retirement money.

Please, please use this link to understand Wealthramp, and to get matched with a fee-only FIDUCIARY who can review your situation on everything from retirement income to investing assets. And who is NOT TRYING TO SELL YOU ANYTHING!!

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