<p>I will have a mortgage in retirement but with these low rates and the fact that I am lucky enough to have a pension plus social security I do not think it will be a problem. I do have enough cash set aside to pay it off but that would almost leave the pension/ss as my only income source. </p>
<p>My issue over the next few years is when to end my various insurance policies- both life and disability. I can have my pension kick in today and it would cover 70% of my take home pay so I am not sure I need to continue any of the policies.</p>
<p>If mortgage rate is fairly low, instead of paying off mortgage in a lump sum (if afford to pay off), wouldnât it be better to have the money invested that can possibly have a % return greater than the mortgage interest rate? Of course, it is sort of a gamble. For me, paying off mortgage before retirement is peace of mind, one less monthly expense to worry about, mine is paid up.</p>
<p>When to start taking social security will be the next big issue for me, tap it early at 62 1/2 or wait until full benefit age. </p>
<p>I was thinking the other day about keeping up the disability policy or not - will decide next year when I am 59 and if I am working or not (as I overpay on the disability policy when not working, because it will then only pay out if I am 100% disabled).</p>
<p>A credit union may be a place to âfindâ a mortgage. However it is always better to have the high credit rating to get the most favorable interest rates. It may be that they take out more of a non-traditional loan. Their experience is a âwake upâ to anyone deciding on real estate with a mortgage after regular job/paychecks end. Sometimes the way the rules work donât always make total sense. That is why I donât agree with Dave Ramsey - some people have to pay higher on insurance w/o a credit rating, and not everyone does the traditional underwriting w/o taking into factor a FICO score. My like is easier by having a strong FICO score.</p>
<p>I have a disability exclusion of 1 year before I am covered. I am allowed to accumulate sick days so over 35 years I have enough to be out of work for 2 years. The majority of days I do not have were donated to co-workers with sries illnesses. My disability would pay me $1,600 a month until I am 65 if i ever needed it. It costs me peanuts about $20 a month. I am almost 57.</p>
<p>My life insurance is both term and whole life and that is a significant amount of money each month. I have $500,000 in all. I think I really should slowly cancel policies over the next 3-6 years.</p>
<p>They told us to apply for a HELOC while H was still employed as they have seen retirees refused mortgages and helocs if they donât have earned income. </p>
<p>To me, this doesnât make too much sense if they have other streams of income that equal or exceed the earned income. As far as I can tell, our credit scores havenât fallen from the 800+ they always were pre to post retirement. </p>
<p>Actually a pension which is guaranteed for life of retiree and spouse is more secure than wages, as long as the payor has good credit and remains solvent. I guess these days, many employers are underfunding and shedding their pension plans. </p>
<p>Was just agreeing with the poster who said that sometimes lenders wonât loan to retirees, no batter how much income they gave if it isnât âearnedâ income. If the HELOC was large enough, the person could keep the home and buy the new one, assuming enough cash flow to make all payments and expenses. </p>
<p>Retired on Friday. Have very small balance left on mortgage and no other debt. Will wait at least until 66 to collect SS. Move to retirement home next week. Excited to relax.</p>
<p>Congrats, Barron! One issue some retirees think about is whether to continue making payments on the mtg or pay it off in a lump sum. Guess it depends on cash flow, available assets, interest rates, whether sale or move is planned, etc. </p>
<p>Yeah!!! Sounds lovely Barrons. We are still 10+ years away, unless we quit early and plan on being extremely, extremely frugal. But we are only a few months away from paying off the house; a birthday present for DHâs 54 and my 55th birthday. :-)</p>
<p>@anxiousmom, in one sense it doesnât matter, but it was a great feeling after making the last mortgage payment! You should be looking forward to it. </p>
<p>re ROTH IRAs, converting via back door ROTHs: seems to me a no brainer if all your IRA money is post tax money so that you donât pay any taxes in doing these transfers⊠especially if you are high/top income bracket and will remain that way for the rest of your life. You grow your money tax free and withdraw tax free, and even convert it tax free!</p>
<p>âIf mortgage rate is fairly low, instead of paying off mortgage in a lump sum (if afford to pay off), wouldnât it be better to have the money invested that can possibly have a % return greater than the mortgage interest rate?â - Weâve mulled this over, but itâs confusing because mortgages have front-loaded interest. At this point (6 years left) we are paying mostly principal. Not sure yet when we will retiree. Earliest (probably not feasible) would be next year when DH turns 60. </p>
<p>You are paying mostly principal, because the principal has been slowly paid off for many years. The interest is based on a gradually smaller principal amount. Your interest rate is the same if you have a fixed rate mortgage.</p>
<p>SoâŠif the interest rate is a high amount, it is better to pay off the mortgage than take a chance on investing the money and getting a higher return than the interest rate. </p>
<p>I am assuming with just 6 years left on the mortgage, there is no prepayment penalty. </p>