Your retirement is closing in but, with the kind of economy that we have now, you are not yet so sure if you should still pay off your mortgage in the next five years.
Forty percent of your retirement savings have been slashed since last year. This is enough to entice you to take more risk in investing in stocks, cross your fingers, and wait until the market rebounds so youll be able to recover your saving.
Should you still pay off your mortgage before you retire and ahead of time?
There are two reasons why you should pay off your debt and accelerate your mortgage payments especially in 2009.
But before I get into that there are two caveats that you must consider before paying off your mortgage.
If you have high credit card debt to pay, make this a priority in 2009. Credit card interest rates are high and sometimes around 30%. It makes much more sense to pay off your credit card debt first before you choose to pay off your mortgage. There is one exception and I will discuss this later.
The second caveat is that you should make sure that you are always contributing to your 401(k) or retirement savings account. I know the stock market has fallen over the last eight months and it does not make sense to keep contributing in the stock market, but in order to prepare for your retirement, it is imperative that you keep contributing to your 401(k) plan at least out to your employer match.
The move to pay off your mortgage when you have done all these will be the most appropriate step to take before you retire. And it is even better if you take action this year.
Living in your own home after you retire allows you to enjoy the fruit of your labor. You only have to spend your retirement benefits on property tax and maintenance cost. That hateful mortgage bill will no longer tear a hole in your retirement savings.
Reverse mortgage allows you to get access to your retirement funds when you settle your mortgage before you retire.
With a reverse mortgage, you will be able to make use of your home equity and turn your home as a source of income when you retire. However, you may only enjoy this benefit if you have your mortgage account almost paid off fully.
When you think about paying off your mortgage, you immediately think that you need to spend more of your own money in order to pay off our mortgage early. But it does not have to be this way.
There is a new technique called mortgage acceleration that will help you pay off your mortgage faster without changing your lifestyle. This technique can help you slash at least 13 years off your mortgage and save thousands of dollars of interest.
Forty percent of your retirement savings have been slashed since last year. This is enough to entice you to take more risk in investing in stocks, cross your fingers, and wait until the market rebounds so youll be able to recover your saving.
Should you still pay off your mortgage before you retire and ahead of time?
There are two reasons why you should pay off your debt and accelerate your mortgage payments especially in 2009.
But before I get into that there are two caveats that you must consider before paying off your mortgage.
If you have high credit card debt to pay, make this a priority in 2009. Credit card interest rates are high and sometimes around 30%. It makes much more sense to pay off your credit card debt first before you choose to pay off your mortgage. There is one exception and I will discuss this later.
The second caveat is that you should make sure that you are always contributing to your 401(k) or retirement savings account. I know the stock market has fallen over the last eight months and it does not make sense to keep contributing in the stock market, but in order to prepare for your retirement, it is imperative that you keep contributing to your 401(k) plan at least out to your employer match.
The move to pay off your mortgage when you have done all these will be the most appropriate step to take before you retire. And it is even better if you take action this year.
Living in your own home after you retire allows you to enjoy the fruit of your labor. You only have to spend your retirement benefits on property tax and maintenance cost. That hateful mortgage bill will no longer tear a hole in your retirement savings.
Reverse mortgage allows you to get access to your retirement funds when you settle your mortgage before you retire.
With a reverse mortgage, you will be able to make use of your home equity and turn your home as a source of income when you retire. However, you may only enjoy this benefit if you have your mortgage account almost paid off fully.
When you think about paying off your mortgage, you immediately think that you need to spend more of your own money in order to pay off our mortgage early. But it does not have to be this way.
There is a new technique called mortgage acceleration that will help you pay off your mortgage faster without changing your lifestyle. This technique can help you slash at least 13 years off your mortgage and save thousands of dollars of interest.
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