Should I pay off mortgage from retirement funds
I’m almost 70 and am ready to retire. I own a house with a mortgage balance of $130k . Interest rate is 5% and monthly payment is $2500. My only other asset is a retirement plan currently worth about
$300k. Should I pay off my mortgage from my retirement funds? Thanks very much!
Terry Says
No. Just keep paying off your mortgage — and invest your retirement plan very conservatively. Remember, if you take money out of your plan it is no longer earning — plus you have to pay ordinary income taxes on the withdrawal. Then you’ll have little left over to pay down the mortgage. AND, a big withdrawal could impact your monthly Medicare Part B premiums.
