Absolutely! Maybe! It depends.

The closer you get to retirement, the more important it is to analyze your debt levels so that you aren’t overburdened when your income slows down. Mortgage debt can be partially responsible for diminishing the lifestyles that you are accustomed to when you go from earning income to retiring.

So what do you do to make sure your mortgage doesn’t wipe out your retirement savings? Should you use your retirement savings to pay down your mortgage? Or is it better to keep your nest egg and bear the burden of a mortgage? What about a little of both?

The answer is: maybe. Much of the answer lies in your personal financial situation. How you approach this depends on the your tax situation, asset and income, and mindset on debt and investment. Your financial advisor can help you Asses the market conditions, discuss the pros and cons and offer the most agreeable decision.

You should take into account these factors to help you make your decision:

  • Tax Consequences
  • Income
  • Savings
  • Retirement Needs
  • Mortgage Details (interest rates, years left on loan, refi opportunities
  • And many others…

For what it’s worth, a Harris Interactive survey last year mentioned that 40% of people aged 55 and older thought paying off their mortgage was the best financial decision they ever made. But because this is true for many other people, doesn’t mean it would be true for you, too. It may seem like a simple yes or no, but there are actually a number of pros and cons that you need to weigh out. To find out what the most favorable choice is for you, it’s important to have someone help you figure it out. Reach out to your advisor or find an advisor that can help.

Tim Russell is a Registered Representative with, and securities are offered through, LPL Financial, Member FINRA/SIPC.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.