Question:

I am 56 and live in Florida – should I pay off mortgage early or invest?

Answer:

Well, this is a common question: Should you pay off mortgage early or invest? You are close to retirement and may have savings that you want to make work for you.

How to decide - paying off home early or investing when close to retirement?

Largely, it depends on what kind of other assets you have, and how comfortable you are with investments. The safe path is to pay off your mortgage loan. To take the other route, you should go to your financial advisor and talk to them. If you are managing your assets on your own, you wouldn't be asking this question so I'm guessing you are not.

 There are several general schemes - pros and cons of paying off mortgage early, already discussed in MortgageQnA. However, for specific circumstances no general plan applies. This is a decision that has to be taken after your financial situation is examined:

  • your and your spouse's income;
  • how many descendants do you support;
  • do you have other debt and how much is it;
  • how late you are in your mortgage;
  • do you have investments and what is their rate of return;
  • do you have a medical plan and life insurance, etc.

Anything has to be taken in consideration before you make this decision and it is recommended to take financial planning advice from a professional.

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