Financial advice

[Dialer]

I turned 60 in July, have around $500k tied up in indexed annuities, a Roth IRA, and a conservative TD Ameritrade account. My attorney settled my workers compensation case, and I receive a long term disability check from a private insurance company that I opted into several years ago. My financial advisor doesn’t think it‘s smart to go ahead and pay off my home ($1400 per month), but rather me continue the investing. I owe $270k on my house, which I could pay off, and STILL have money being invested. Seems saving a $1400 per month house note is more profitable than the $1800 that I’ve made in my retirement accounts Since January of 2021 when I opened them! Seeking someone smarter than me for advice…Thanks in advance!

 

[NE GA Pappy]

what is the interest rate?

even if it is real low, there is a certain peace in knowing that you OWN your home, and don't have to worry about making that payment each month.

 

[JustUs4All]

If you do decide to pay off your home, consider continuing to pay the house payment but pay it into your investment account.

 

[Crakajak]

It also will depend on how far into the mortgage you are.You pay most of the Interest in the first 2/3 of the mortgage timeline.I

 

[Geffellz18]

If you do decide to pay off your home, consider continuing to pay the house payment but pay it into your investment account.

This….To me, a paid off home would provide great peace of mind, well above any potential interest earned through added investing.
Take the money that was applied to the house payment and invest as @JustUs4All stated.
My .02

 

[DAWG1419]

CAll Dave Ramsey and ask. He will tell you what to do.

 

[livinoutdoors]

Pay off the house. You never know what the future holds. You could invest that money and then a market crash or correction happens and you lose that value. The house comes first.

 

[Railroader]

No more mortgage makes the house look different when you turn in off the road.

A lot different....

And it's a great feeling. I highly recommend it.

 

[Jeff C.]

Debt free is the way to go as most here agree.

 

[Nicodemus]

Pay your homestead off. You won`t regret it.

 

[treemanjohn]

I've been debt free for over 20 years. It's an incredible feeling to say the least.

If your making a higher percentage in the market than you're paying to your interest rate you may be ok.

 

[pjciii]

I agree with those that have said debt free. The only difference is i got a refinance and then used some of my savings to achive a payment that i was comfortable that i could make if everything went to heck. That is just using social Security And not any of the other savings.

In doing that i can still do alot and not have all the worries. Even if the housing market crashed i am in a position to just ride it out. That is just me. I am still able to eat out put gas in the car and do some traveling. You will get alot of opinions Throwing it out like you did but at the End of day you need to talk to a professional to make your best decision.

 

[4HAND]

It's a really good feeling paying off that mortgage.
Really good feeling.

 

[Tight Lines]

Everyone's situation is different. Talk to a good financial advisor. Typically, at least right now, if you invested that in a slightly more aggressive scenario you will make more in your investments than the interest in your mortgage which should be tax deductible. My interest rate on my mortgage is under 3%. I can make 3% per day in the markets some days. If you have disability and SS coming at some point, be a little more aggressive with investments and keep the mortgage. But again, talk to a good financial advisor because we all have our own situations.

 

[B. White]

Everyone's situation is different. Talk to a good financial advisor. Typically, at least right now, if you invested that in a slightly more aggressive scenario you will make more in your investments than the interest in your mortgage which should be tax deductible. My interest rate on my mortgage is under 3%. I can make 3% per day in the markets some days. If you have disability and SS coming at some point, be a little more aggressive with investments and keep the mortgage. But again, talk to a good financial advisor because we all have our own situations.

I agree. I don't have an advisor. I know they would tell me I'm too aggressive, but you have to decide how much is enough and what you are willing to risk.

I would have always been in the group saying no house or car payments for me again, except the rates right now offered me cheap money compared to what I am earning on what I would have paid it off with. I've had a bad month or two here and there, but still average earning over 5X my house payment each month. It wouldn't make much sense for me to pay it off. I paid cash for my wife's car and intended to do the same thing with a used truck to replace my 20 yo truck, but the math worked out about the same as the house. I paid about 40-50% and will finish it in about a year and a half.

I'm also willing to work part time right now, so I won't be touching what is invested for a while unless I have health problems worse than I do now. I ain't into boats, motorcycles, new cars, etc. I planned to have most of what I needed (guns, ammo, powder, tractor, ATV etc.) at this point. My outgo is not near what some folks' is.

You need to decide with your lifestyle what you are comfortable with.

 

[Dialer]

My mortgage APR is like 2.5%. The graph on my invest accounts are almost strait across, total growth amount over the 10 month period is $1,810.00 and I don’t see it increasing anytime in the near future, as long as Joe is in office, it can only get worse. I’m wondering if my financial advisor has a dog in this fight. Does he lose money if I cash out? He seems eager to keep the money where it’s at. My long term disability is about $2800 per month, health insurance is $950 per month, with no credit cards or car payments. Would be totally debt free if mortgage goes away. Attorneys for the LTD insurance are fighting for my SS, but say it will take 3-4 months at this point. Considering driving a school bus to take away the medical insurance payment, but the amount I get paid would be subtracted from my LTD payment.

 

[Jim Baker]

I turned 60 in July, have around $500k tied up in indexed annuities, a Roth IRA, and a conservative TD Ameritrade account. My attorney settled my workers compensation case, and I receive a long term disability check from a private insurance company that I opted into several years ago. My financial advisor doesn’t think it‘s smart to go ahead and pay off my home ($1400 per month), but rather me continue the investing. I owe $270k on my house, which I could pay off, and STILL have money being invested. Seems saving a $1400 per month house note is more profitable than the $1800 that I’ve made in my retirement accounts Since January of 2021 when I opened them! Seeking someone smarter than me for advice…Thanks in advance!

There are a lot of ifs in there. If it were me I wouldn't pay off the home. Why? Because you can do that at anytime. If your interest rate is low and your time horizon is more than just a few years your money should do better invested verses the interest savings on your mortgage. One is compounding and one is diminishing.

Unless you are willing to down size your home in the near future the equity in your home is sorta of nil because you have to live somewhere.

Keep your cash invested and make the payments.

 

[Tight Lines]

My mortgage APR is like 2.5%. The graph on my invest accounts are almost strait across, total growth amount over the 10 month period is $1,810.00 and I don’t see it increasing anytime in the near future, as long as Joe is in office, it can only get worse. I’m wondering if my financial advisor has a dog in this fight. Does he lose money if I cash out? He seems eager to keep the money where it’s at. My long term disability is about $2800 per month, health insurance is $950 per month, with no credit cards or car payments. Would be totally debt free if mortgage goes away. Attorneys for the LTD insurance are fighting for my SS, but say it will take 3-4 months at this point. Considering driving a school bus to take away the medical insurance payment, but the amount I get paid would be subtracted from my LTD payment.

It sounds like to me you have your investments in an extremely conservative set of investments. If you do not need the cash right now, and it sounds like you do not, I would be a little more aggressive. Since the crash in March of '20 markets have rocketed. If you had $500K in even reasonable risk investments it could have been doubled by now. It sounds like to me you need to interview a couple of other financial advisors, and unless you pay a flat rate, it is likely that you are being charged based on the amount invested, so yes they lose if you pay off the house. But it's also probably sound advice not to give the deduction vs. the income potential of your investments. Need more information. I would talk to a few other financial advisors and get a good CPA.

 

[notnksnemor]

If you're earning less than 2.5% on your investments pay off the mortgage.
Otherwise, you are losing any earnings above 2.5% on investments.

 

[BeerThirty]

I don't think either option is a terrible mistake either way... Me personally, I would skew towards paying off my home if I felt that I could live comfortably off my remaining retirement/cashflow. The big question is how long do you think you will live?