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Paying down mortgage amount

By Terry Savage on January 12, 2021 | Financial Planning / Retirement

My wife and I are 54 years old. Youngest son is out of college so financially we are in a different place. We owe 154,000 on our current mortgage and are going to refi with a 15 year mortgage. Home is worth approximately 400-450K. My retirement nest egg is on track to retire at 62. My wife’s is not quite there yet but with mine we could make retirement comfortable. Here’s my question…we have 70K available to pay down our mortgage before refi. Is it better to do this or to invest it some other way. Note: Neither of our retirement/pensions allow additional contributions like a 401K. I have annuity/pension and she’s a teacher.
Thanks for your time and expertise,

Terry Says

This is a bigger question than just paying down your mortgage. It’s the perfect time for you to consult a FIDUCIARY FEE-ONLY financial planner. find one through the link at the top right of my website. That will take you to Wealthramp.com — a service run by a friend of mine (and co-podcaster at Friends TAlk Money) Pam Krueger. She will match you with a Fiduciary FEE-ONLY financial planner she has carefully vetted. You pay nothing extra. Try having just one meeting for a set fee.

Here’s why:
You think the alternative is using the cash to pay down your mortgage or invest. But do you have Long Term Care Insurance?
Perhaps that money could be used for a one-time premium that buys huge peace of mind against an unexpected healthcare challenge that could wipe out all your retirement plans, not to mention your kids’ inheritance!

That’s the kind of issue a financial planner will ask you to consider — the big picture, not just the current impact.

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