No. of Recommendations: 0
A couple of suggestions to add to some already good ones posted:
First, determine what your "after-tax" interest rate is on your mortgage. If you are 28% taxed then your 7% mortgage is costing you only 5%,(if you itemize deductions). If you don't think you can earn more than than that through investing in mutual funds or individual stocks then pay it off. Most people think they can match the historical market return of about 10% to 12%.
The other reason you may not want to pay off your mortgage is that you are essentially "investing" in a stock called "my house". If your home is appreciating 8-10% a year that's a good investment. But are you diversified enough if the real estate market goes flat or down?

Secondly, instead of an annuity you might consider a reverse mortgage if a lot of your net worth is tied up in your house. You should wait until you need the money (and don't want to sell the house) but the payments will continue as long as you or spouse remain in the house.
I am personally not annuity-minded. They may seem to provide ultimate protection but as another poster pointed out the payments may not keep up with cost of living.

Talk to a financial advisor that doesn't sell anything (unbiased). It's worth paying a fee for good information.

Good luck.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.