Saving for Retirement vs. Paying off Your Mortgage

The idea of paying off the mortgage — usually our largest source of debt — is appealing to many homeowners. But is it really the best financial strategy?

The relative benefits of paying off a mortgage versus saving for retirement can be hard to assess. It’s important to consider your individual situation. Are you close to retirement age, or many years away? Do you have significant retirement savings? What tax bracket are you in, and how much benefit do you receive from a mortgage interest deduction? Will the returns on your retirement investments exceed what you’re paying for the mortgage?

mortgSource: Jeff Stoffer, NerdWallet


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s