Colli Real Estate

I owe 272K on my mortgage. I’ve 170K/ cash & 450K/IRA 401K. Just got 283K more cash. Should I payoff the 272K?

I’m 50 years old and have a good paying job. My plan is to take the $2200/month I currently pay on my mortgage and invest it. My goal is to retire at 59.

It all depends upon your discipline, and your investment skills. You have a total of $453K in cash and another $450K in retirement accounts. You are very liquid. It wouldn’t kill you to go either way.
If your mortgage interest rate is less than 6% I would be inclined to keep working and pay the mortgage as you have been doing. Invest all of the cash in a good growth and income investment. If that investment growth and income averages only 7% per year after taxes, the $272K will have grown to over $500,000 when you are 59, and you can pay off the balance on the mortgage then (which will then be much less than $272K, because you have been paying on it for 9 more years). You will have 500 minus (less than 272), or (more than) $228K additional moneys for retirement. The bugaboo is that if your retirement fund doesn’t grow every year on average you might be in a deficit in the fund, like if thee was a bear market on the way to retirement in the next nine years.
So, if that age 59 1/2 is a major goal,and you are really looking forward to it, and certainly if the mortgage interest rate well above 6%, I would say pay the mortgage and put the $2200 formerly paid on the mortgage into an investment every single month. Then you will have peace of mind for the next nine years!

Mortgage Goals and Call Tracker

Goals! $26.5 Goals!

Navigating the Mortgage Maze: The Simple Truth about Financing Your Home $12.99 “Confused or overwhelmed by the “mortgage maze”? Industry pro Dale Vermillion explains the simple truth. Learn about wise mortgage financing, and how to avoid common traps that cost you thousands of dollars Chapters include: > – The Top 10 Mortgage Mistakes – Simple Truth about Interest Rates and APR’s – Mortgage Industry Dilemma – The Simple Truth About Debt – Qualifying for Mortgage Financing – Establishing Financial Goals – Mortgage Refinancing as an Investment Tool – Borrowing Smart – Mortgage Independence – Moving to Real Life Change”

Goals $6.99 Goals – Poster

Tags:   blog · finance · goals · money · mortgage · mortgage goals · mortgage goals and objectivesNo Comments