Ask Terry Questions Sell stock to pay off mortgage?

Sell stock to pay off mortgage?

By Terry Savage on March 12, 2024 | Financial Planning / Retirement

My wife and I enjoy listening to you on WGN and she suggested we seek your advice. We currently have $78000 left in our Vanguard account, and we still owe about $80000 on our home mortgage.
Our question is this…should we take our investment money out of Vanguard and pay off our mortgage. We would be saving about $21000 / year on mortgage payments, although $11000 of that would go to property taxes. Our home has appreciated 75% over the last 20 plus years and will continue to go up in value once rates go down some more. We our both in our 80’s so the
home will eventually go to our kids, who will probably sell it. This way there would be no mortgage for them to pay off. Does this make sense in your opinion.

Terry Says

You forgot to tell me the most important thing: What is the interest rate on your mortgage?!
That’s a key component of this decision.

And this is a decision that should be made in context of your entire financial picture — You don’t want to lose all your liquidity for emergencies as you get older.
And it’s all part of your entire retirement income plan — not just a monthly savings on payments.

In fact, this ‘simple’ question is so complex, I’m worried that you really haven’t done any sophisticated planning at all. I suggest you use the Wealthramp service to be matched with a carefully vetted FEE-ONLY, FIDUCIARY financial planner who you can trust — and who is not trying to sell you anything.
He/she will go over your entire picture — including your estate plan, your investments, your tax situation, etc etc.
That is the ONLY way to get yourself lined up for a secure retirement.  

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