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It’s best to pay off your mortgage before retirement

Michelle Singletary, financial writer and advisor, was shocked about a survey that found boomers aren’t in a rush to pay off their mortgages before retirement.

Singletary was taught and she thinks it makes good sense to get that major expense out of the way before retirement income drops.

In her article, “Don't Drag That Mortgage With You Into Old Age,” which appeared in The Washington Post, she quoted Jim Bell, founder and president of Bell Investment Advisors, about the company's survey:

Contrary to conventional wisdom, mortgages can actually be a wealth-building tool for boomers throughout their retirement years. In addition to their tax benefits, mortgages help free up funds that otherwise would be tied up in property ownership for investment in equities.

The finding was part of the third annual "Affluent Boomers at 60" survey conducted by the firm.

I agree with Singletary. If at all possible, get your mortgage paid off before you retire. It will help you meet expenses as costs continue to rise…and rise.

Visualize having a big party to celebrate really owning your own home. Invite everyone you know. It will be a great day for you and your family.

Copyright 2008, Rita R. Robison, Consumer Specialist


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