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

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