During retirement most source(s) of income will be...... (UH-OH?)

[geds]

With mortgage rates at less than 4% and my investments are averaging better than 7%, it doesn't take a rocket scientist to figure out that any extra savings are better placed in savings rather than paying down the mortgage. And that is before factoring in the interest deduction on the mortgage. So, NO, it is not always a wise idea to pay off the mortgage.

[mjp28]

Originally Posted by geds

With mortgage rates at less than 4% and my investments are averaging better than 7%, it doesn't take a rocket scientist to figure out that any extra savings are better placed in savings rather than paying down the mortgage. And that is before factoring in the interest deduction on the mortgage. So, NO, it is not always a wise idea to pay off the mortgage.

Yes, that's why you have to run the numbers for yourself.

Age, income, emergency money, savings, retirement plans all that goes into your decision. I'm not against paying off a mortgage, you might want to do that if you feel better -but- not a must at below 4% rates.

Remember the Fed is at 0.25% add 3% = the PRIME rate which a whole lot of things are based on like car loans, credit cards, etc.

Back between Carter & Reagan the Prime was 21%, you could get a 15-18% CD, easy. Will it go up even to 8-10% again, who knows -but- it won't go any lower....bet on that!

[time2shoot]

I'm 41 years old have been forcibly retired for 2 years. The only debt I have is my Mortgage.