The Big Payoff
Retirement in your near future? Are you thinking of refinancing a mortgage or paying it off?
With mortgage rates at historic lows and record financial marketplace highs, the answer may not be so obvious. Over the weekend, I read an article by Katy McLaughlin in the Wall Street Journal titled “The Big Payoff.” I found this article hit home since I’m considering the same decision. What are the benefits of carrying a mortgage or not?
The article addresses several pertinent questions:
- Find your real mortgage rate. What is the cost of the mortgage coupled with how you file your taxes?
- Project the rate of return. Seek out professional advice such as an accountant, CPA, CFP, financial advisor for their insight on the different options, including the “Worst-case” scenarios.
- Strategize portfolio withdrawals to make the payoff. Are you considering utilizing tax-deferred funds (IRA/401K)? Alternatively, consider the rainy day funding for the possibility of future healthcare and medical expenses in retirement.
- When considering distributing deferred funds, first, weigh out the financial and tax consequences with the benefits of re-purposing those funds for a Hybrid LTC option to cover the potential costs related to Aging in Place for Hands-On Assistances.
- Feel good about your decision.
In the end, your decision is feeling comfortable and giving you Peace of Mind.
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