Is It Okay to Retire with a Mortgage?

Is It Okay to Retire with a Mortgage?





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[hdsensing]

I am a Ramsey fan and love the idea of paying off the house before retirement. HOWEVER, I have a 2.7% interest rate on my house. I have stopped paying additional principal on it because it is such a low rate. I am now using the extra to top off my Roth 401k.

[Random-ldwg]

i am retired for 3 yrs this month. i still have 39 months left on my 15 yr 2.75% mortgage. i didn't pay it off earlier, though i could have. my payment was only 16% of my monthly draw at the onset of my reirement and this was using a 3% withdrawal rate it is even a lower percentage now with adjustments in my draw rate. as part of my portfolio the left over principal is earning way more than 2.75%. if i paid it off i would just spend the money elsewhere so it's a form of forced scarcity even in retirement.

[CruisingwithLocstar]

Todays episode was so fun. I love the light hearted banter

[jakealberda]

Phew.... Bo is SO excited again. Glad he got over only being excited 😂

[Gigi-upyi]

You guys are all so awesome! Brian was too cute when he held up the phone for everyone 😂

Thanks again for another amazingly helpful video guys! ☺️👌

[alexpietsch]

28:50 Brian has a bigger army of dollar bills in his pockets than the average person has in liquid assets

[jayhimes]

Re: student loans - Also, many (and all federal) student loans are insured against death and disability, most mortgages are not. There are a number of loan forgiveness programs for federal student loans as well as income sensitive repayment options, but not for mortgages. I would want to preserve access to those features on that balance rather than rolling student loan balances into a mortgage.

[hulenbryant]

You can't eat equity. I'm not taking 200K from my investments that earn around 10%. Plus, half my house note is insurance and taxes, so even paying off that balance doesn't make the payment go away.

[queson]

A 2.5% mortgage isnt a debt. Its a gift.

[CobaltLobster]

I'll absolutely be retiring with a mortgage. It's not even a question. Inflation has been paying my home off for the last 6 years and I'll continue to let it.

[queson]

wrt student loan question,

mortgage at 3.25% 280k is 9100 a year in interest. 7% 360k is 25, 200 in interest
student loan of 80k at 20% is 16k a year. that would be the break even for this to make any sense.

and you also dont want to consolidate loans of different rates. you want to plow every penny you can into the highest interest one.

[paulamore]

My thing is, I’m a lifelong renter, simply because I don’t have the time, interest, or discipline to take care of a house. In retirement I’d like to buy a condo, just so I can have a little more privacy and power. And with no job, I could probably care for it.

[laundrygoddess]

I'm 50 and currently budget 800 a month for medical. I couldn't imagine retiring and having higher medical costs and still paying debt

[AdamWrightfool]

I'm now avoiding new purchases to avoid slipping into a bear trap. However, I'd like to know where the best investment opportunities are during a downturn. My goal is to retire comfortably on around $1.2 million.

[carlaritchie]

Derek's question probably assumes they will both be healthy and able to work for 3 more decades. In hindsight, I should have saved more when age 20-40 when time is on your side for compounding interest. Unexpected things can happen in life that may impact work ability. The better prepared you are and the more options you have if something bad happens, the more likely you are to feel financially secure with no regrets. Save as much as possible early in life because you can never go back for another chance.

[RobWilliams]

Derek, you have it backwards - if you have no kids you should save as much as you can because when you have kids you may not be able to save as much - kids are expensive. Pluuuus, time is your greatest asset.

[SideWays]

Paid our house off and got a large 1st heloc as an opportunity fund. Don't rush to pay off a low rate mortgage without a specific purpose.

[LeaMcCaw]

We are moving next year. We've had the conversation about renting out versus selling. (Low mortgage, high local rent = very positive cash flow).

We decided to sell as, even if our next location doesn't work out for us, we wont be returning to our current house location.

Simplify for us beats out the additional cash flow.

[SuperKamiNeko]

If you have enough passive income to cover all your living expenses and more, then yes, you're retired and financially free.

[Bippityboppityboop]

52 and one of the lucky ones that had over $100k forgiven of student loans from the 90s. I'm buying my first house near the end of this year-Ive been a single mom for 23 years.