Is there anyone out there that believes holding a mortgage can be beneficial in retirement years? To me a mortgage offers tax deduction of interest payments. This deduction lets one use "tax money" to help pay for the home. A mortgage also provides leverage to use the money that would be tied up in a mortgage-free home. That money could then be put into conservative investments. If the home appreciates it could be sold after living in the home for 2yrs. and the gain would be tax free. Your thoughts would be appreciated!
I asked the same question of Vanguard & the answer was that it was a good idea. They cited the tax benefits.
mawhinney wrote: "...To me a mortgage offers tax deduction of interest payments. This deduction lets one use "tax money" to help pay for the home. I would answer: This deduction lets one use "tax money" to pay part of the interest incurred.lkrueger
The money that you borrow and invest is just margindebt. If it comes from a broker you can not deductthe interest. If from a mortgage you can.The question is can you earn more than the moneycosts you? Can you do it consistently. Baomike
Baomike:Interest paid on a margin account is tax deductable, at least in USA. Pub 17 tells me so.--WauseonFox--
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