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Personal Finance and Investing

PoindexterOglethorpe

(26,730 posts)

25. There's conventional advice out there that no one should retire with a mortgage.

Reply to OnionPatch (Reply #23)

Tue Jul 5, 2022, 02:38 PM

Jul 2022

Well, I don't know about your circumstances, but in my case I got divorced at age 60. I wasn't going to rent long term, and I got a sweet little place (2 bedrooms, 2 baths, 3 skylights) in my new city of Santa Fe. It's perfect for me.

While it certainly would be nice not to have a mortgage payment, look very carefully at what else you can do with that money. Investing in good mutual funds would grow that money, and you'd be better off down the road.

Because of careful investments and a good financial advisor, my income has increased in retirement.

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Taxes on IRA withdrawl question [View all] OnionPatch Jul 2022 OP

This message was self-deleted by its author A HERETIC I AM Jul 2022 #1

Generally... no FBaggins Jul 2022 #2

I'm a retired financial advisor. Your response is absolutely correct. BlueBloodedAmerican Jul 2022 #6

Unfortunately I did not refinance. OnionPatch Jul 2022 #9

If you get Social Security you may get taxed more on that. Yonnie3 Jul 2022 #3

I'm not sure if this is what you mean but I can make up to 19K of wages before my SSI is affected. OnionPatch Jul 2022 #17

no, that is not what I meant Yonnie3 Jul 2022 #19

This message was self-deleted by its author Tomconroy Jul 2022 #4

Your actual marginal tax rate could be higher, much higher ... progree Jul 2022 #5

Lots to think about here. OnionPatch Jul 2022 #16

Yeah for the ACA. But watch out, your premium subsidy amounts depends on your income ... progree Jul 2022 #20

Ok, so I just saw at the SSI site that IRA withdraws don't count as income when determining benefits OnionPatch Jul 2022 #22

Please speak with a financial advisor. Phoenix61 Jul 2022 #7

Yes, that's what I was advised but now I have a monthly mortgage OnionPatch Jul 2022 #8

Look At Your Interest Rates.... gainesvillenole Jul 2022 #10

That makes sense OnionPatch Jul 2022 #11

It's a numbers game. Phoenix61 Jul 2022 #12

Thanks. The IRA isn't making anything right now, unfortunately. OnionPatch Jul 2022 #15

The only way to get lower payments would be to refinance Phoenix61 Jul 2022 #18

Thanks, that looks really helpful. OnionPatch Jul 2022 #24

Just brain storming here but could you split the payoff between two years? mitch96 Jul 2022 #13

Thanks. I may do something like this. OnionPatch Jul 2022 #14

About ten or so years ago I asked my financial advisor about PoindexterOglethorpe Jul 2022 #21

Yes, I'm in a similar situation as you were. OnionPatch Jul 2022 #23

There's conventional advice out there that no one should retire with a mortgage. PoindexterOglethorpe Jul 2022 #25