Aug
6
2009
Pay off your mortgage before you retire
Author: Byron UdellIf you are nearing retirement or seriously thinking about your future financial plans, this post is for you…
I recently read an article about why Americans should pay off their mortgages before they retire. Since I frequently advise people to purchase a term life insurance policy in order to help your loved ones pay off the mortgage if you were to die prematurely, I suggest reading the notes I gathered from the article below.
Don’t count on stocks – It’s impossible to predict the future of the stock market, so don’t count on stocks to make up for financial losses.
Make sure you have enough money in savings to cover your retirement living expenses – Saving now for your future living expenses will ensure that you’ll be able to live comfortably in retirement.
Retire debt-free – According to financial experts, you should seriously consider delaying retirement if you can’t retire debt-free. If you aren’t responsible for large debts in retirement, such as a mortgage, your savings will last much longer. And, people in retirement often receive low tax rates, so avoiding paying interest on a mortgage is actually a better deal than receiving a mortgage tax deduction.
Don’t rely on a part-time job – Many people take on part-time employment in retirement for an extra cash cushion. However, this isn’t the best means of income since very few people can count on job security today.
If you would like more information on term life insurance visit a site like AccuQuote where you can receive a free term life insurance quote quickly and easily in order to help you make the right financial decision for you and your loved ones.
Tags: Retirement Planning
August 10th, 2009 at 2:56 am
I totally agree that it is important to pay off your mortgage as well as any other debts before you retire. If you are not debt free and mortgage, then you simply should not retire, as simple as that. Also, people underestimate the importance of life insurance. Life insurance, IMO, is more important than investing in the stock market. The proceeds from life insurance is TAX FREE, and the risk of losing your spouse and having to shoulder the entire financial burden cannot be over stressed. In the order of priorities or importance: 1) pay off all debt, including mortgage. 2) Get enough insurance (life, disability, long term care). Only if 1 and 2 are accomplished should you consider putting the money in stock market.