Did you know that paying off your mortgage before you retire might not always be your best move?

In this episode of The Year You Retire, Jim Uren and John Bever delve into the hot topic of whether to pay off your mortgage before retiring. They discuss the advantages of being mortgage-free, such as potential interest savings and improved cash flow, but also emphasize the liquidity risk and misunderstood historical fears associated with mortgages. They discuss the importance of considering individual financial goals, risk tolerance, and overall liquidity when making this decision. They also touch on the tax advantage of having a mortgage and strategies for paying off mortgages early.

If you want to be better prepared for the year you retire, this episode provides valuable insights into the considerations individuals should weigh when deciding whether to pay off their mortgage. Remember, there's no one-size-fits-all answer and your own circumstances should be carefully evaluated. If you're nearing retirement and own a home, this episode offers valuable insight into the decisions that lie ahead. 

In this episode, you will:

• Learn the unusual perks of mortgage in the U.S. compared to other countries.
• Discover the pros and cons of an early mortgage payoff.
• Learn the potential tax advantages of keeping your mortgage in place.
• Explore effective strategies if you choose to pay off your mortgage early.
• Learn the personality type that might be best suited to a 15-year mortgage.

The key moments in this episode are:

00:00:42 – Topic Introduction

00:04:37 - Pros and Cons of Paying Off Your Mortgage Early

00:07:41 - Impact on Portfolio and Sequence of Return Risk

00:10:55 - Historical Fear of Mortgages and Current Market Conditions

00:15:19 - Importance of Liquidity and Unexpected Expenses

00:19:32 - Tax Implications of Paying Off Mortgage

00:21:09 - Factors to Consider in Paying Off Mortgage

00:23:48 - Ways to Pay Off Mortgage Early

00:25:55 - Final Tips and Considerations

00:27:50 – Coming Up on Our Next Episode

Disclosure:

The views expressed in this podcast are not necessarily the opinions of Phase 3 Advisory Services or Osaic Wealth, Inc. and should not be construed directly or indirectly as an offer to buy or sell any securities or services mentioned herein. Unless otherwise specified, show guests are not securities licensed or affiliated with Phase 3 Advisory Services or Osaic Wealth. 

Investing is subject to risks, including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual professional advice. 

Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Additional investment. and insurance advisory services offered through Phase 3 Advisory Services Limited, a Registered Investment Advisor.

Osaic Wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of Osaic Wealth. Phase 3 Advisory Services is located at 1110 West Lake Cook Road, Suite 265 in Buffalo Grove, Illinois 60089. Our phone number is 847-520-5545. For additional information, visit our website at phase3advisory.com.