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Subject:  Re: Home mortgage in retirement Date:  1/20/2000  5:22 PM
Author:  bildi Number:  1675 of 20783

It all depends on the rate of return you could get on invested money. Example: 100K invested with a 100K mortgage at 7%. You can deduct the interest on your income tax and may actually be only paying about 4.5% depending on your federal tax bracket and state tax rate. If you then invest the 100K and average 10% or more, you will definitely come out ahead even after paying taxes on the 10%. Of course there are many other variables.
My brother in law who retired recently was advised to take out a 150K mortgage on his new house, rather than pay it off, and invest the 150K in the market. The 1% of assets he pays his advisor each year, probably had some bearing on the advice he got. The advice may work out depending on how his investments do, but don't agree with what he is paying his advisor.
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