If you’re younger than … Catch up: Leon Black will step down as C.E.O. For example, if you were buying a house for $400,000 and had $150,000 to put down on the property, you would still need to borrow $250,000 from somewhere – traditionally a bank – to pay the rest. Having a mortgage in retirement may or may not be a danger signal. “I tell them, ‘If you have debt, you’re not ready to retire,’” he said. Better investments: If your mortgage has a low rate—which is likely, given the last few years of historically low mortgage rates—then you may be better off investing excess cash in assets that return more than the mortgage rate. A new federal report says one-third of retirees now have a mortgage. Whether to carry mortgage debt into retirement is a perennial hot topic among financial advisers and their clients. “I've had people ask if they should take out half of their 401(k) to pay off the mortgage, and the answer is no,” says Kristin C. Sullivan, a certified financial planner in Denver. It’s a guaranteed return.”. If you’re younger than 59.5 years, you will incur a 10% early distribution tax penalty on withdrawals from your 401(k) or 403(b), except in certain circumstances. Contact us for having a mortgage in retirement and getting a mortgage if your 55 and above. Among them: your age, how much money you’ve put aside for retirement and where it’s invested, and even how disciplined you are about saving and spending. Seniors also have the highest rate of mortgage … Many financial advisers will hold their noses at Dr. Kotlikoff’s suggestion. “Many clients purchase their dream home in their 50s and … choose a 30-year mortgage. But getting a mortgage in retirement is not so easy for retirees. The standard deduction for federal taxes has climbed to $24,400 for married couples filing jointly — versus $12,700 just two years ago. Whether to carry mortgage debt into retirement is a perennial hot topic among financial advisers and their clients. of Apollo after an inquiry found he paid $150 million to Jeffrey Epstein. By the time they retired, “they had all this equity in their home but they lived much poorer than they had to,” he said. No money:If you need to dip into your retirement savings to get rid of your mortgage, maybe it’s best to skip paying it off for now. M ost people hope to be debt free by the time they hit retirement, yet many still carry large mortgages, lines of credit and other kinds of consumer debt. ARTICLE: 6 Steps To […] Living debt-free seems like the ideal financial scenario for retirement, but having a mortgage during your golden years can actually be a savvy money move, depending on your finances. But is it the best option for you? “However, if the client is not going to sleep well, or is going to forgo the enjoyment of retirement, as they are too worried that they have a big mortgage payment, then the answer changes.”. Retirement-interest only mortgages (RIOs) are a relatively new set of products designed to help older borrowers who may struggle to get a standard residential mortgage. Plus, any amount taken from a 401(k) will be included in your gross income come tax time, possibly bumping you into a higher tax bracket. It's better than credit card debt. Janna is a former Senior Writer at ValuePenguin covering banking, credit cards and credit scores. And he fully intends to have it paid off by the time he retires in 15 years or so. “That would be crazy.”. From credit card debt to mortgages, retirees are faced with a list of expenses in life after work that can put pressure on them to sell their home, downsize or rent. This may be true, especially if they’ve got a longer time horizon to ride out ups and downs in these investments. Mr. Halpern, the Virginia-based adviser, recommends comparing whatever you have in pretax retirement accounts against your after-tax savings. “I've had people ask if they should take out half of their 401(k) to pay off the mortgage, and the answer is no,” says Kristin C. Sullivan, a certified financial planner in Denver. But that scenario is changing. No money: If you need to dip into your retirement savings to get rid of your mortgage, maybe it’s best to skip paying it off for now. What’s a good liquidity number? If the cost of living spikes, they’re repaying the loan with money that is worth less than what they borrowed. When looking at your retirement expenses, it is important to: Include … The proportion of seniors with mortgage debt has almost doubled from 8% to 14% (from 1999 - 2016). Dr. Kotlikoff came to this conclusion after running a series of scenarios through the retirement-planning program on his website, MaxiFiPlanner.com. The reality is, a) they probably don’t have enough to pay it off and b) it’s going to leave them with nothing but tied-up money.”. According to Statistics Canada, 34 percent of retired people over 55 are still carrying debt, while a 2017 Equifax Canada report found seniors are increasing their debt loads at a much faster pace than other Canadians. “If debt interest rate is less than projected return for deploying money another way, then invest money otherwise and do not pay off debt.”. Mortgages can certainly be great for clients when used and managed properly. But when the client turns 65 and plans to retire, they should have a conversation about options,” says Matt Chancey, a certified financial planner in Orlando, Florida. You pay half of the total interest with the first third of payments. The MaxiFi Planner software assumes you will be earning the 30-year Treasury bond rate on your investments, currently a little more than 2 percent. Some pre-retirees and retirees might be wondering if it makes any sense to pay off the mortgage on their home in the current low-interest environment. But big numbers of Baby Boomers are now entering retirement with a mortgage. They allow you to borrow against your property and only pay back the interest (and not the loan itself) each month. In the experience of the financial adviser David Markle, people who are undisciplined about money during their careers will be similarly undisciplined in retirement. By Kody Wilson, CPA, CA, CBV, Manager. Lifestyle decisions have left Gen X at risk of mortgage stress. “I am a fan of living without debt,” said Ted Halpern, a Washington-area fee-only financial planner. On top of that, she is able to deduct the mortgage interest on her California income tax return, saving her some money there. If you’re considering selling … This rule estimates that you will need between 70% and 100% of your pre-retirement income in retirement: 70% if you are typical and do not have a mortgage, and up to 100% if you are still paying a hefty mortgage plus other atypical expenses while retired. Mr. Halpern wants to see after-tax money equal to 50 percent or more of a client’s tax-deferred savings. Working on this issue with most clients, Mr. Mast keeps coming back to the fact that paying off debt creates a risk-free return. This saved him $22,000 in federal, state and FICA taxes,” Mr. Mast said. For homeowners aged 55-plus, the CHIP Reverse Mortgage® from HomeEquity Bank could provide the money you need to pay all of your medical costs, without having any impact on your retirement income. “There’s no harm in having debt if it’s for an appreciating asset. But for now, “I’m 66, I’m very healthy, I want to go and do a lot of things. When the client retires in two or three years, he can pay down his loans with money from his retirement accounts if he feels the need. His reduced income at that point ought to put him in a lower tax bracket. You’re giving your money that much more opportunity to grow.”. Peace of mind: “We as financial professionals can solve the numbers for each client and make it black and white,” says Derek Tuz, partner at Aegis Financial Partners in Denver. But lately she has eased off. It has not been previewed, commissioned or otherwise endorsed by any of our network partners. This will maximize her Social Security benefit. Mortgage debt comes with low interest rates. The loan is usually only paid off when you die, move into long term care or sell the house. Have you ever considered the possibility of lending yourself money in the form of an RRSP mortgage on a property you own? “Of course, it depends on how much money you have and how much you owe,” he added. Risky investments: Having a mortgage can be a disadvantage if you’re invested mostly in riskier assets, says LaBrecque. It’s important to note that how much mortgage interest you pay decreases over the term of the loan. I can understand why someone would want to borrow at those rates and invest that money elsewhere.”. “We’re locked in at a historically low rate, and I like to have some flexibility and liquidity.”, Who’s right? A retirement interest-only mortgage is only available on your main residence and is very similar to a standard interest-only mortgage, with two key differences. with Jeremy Shipp. Here's when it makes sense and when it doesn't. One important benefit of debt reduction is an increase in financial stability. {"disclosureMessage":" \u003Cp\u003EAdvertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. If so, getting rid of your mortgage—and its interest payments—may make financial sense. Paul Cordero, a financial adviser in San Rafael, Calif., often thinks about his parents, who bought their home in the 1970s and were determined to pay off their mortgage as fast as possible. Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. So he pushes the anti-debt message hard with his clients, hoping to curb their free-spending impulses. Having investments that can fund those things is very important to me.”, When a Mortgage Is Part of Your Retirement Plan. “If you want even less volatility, you can pay off your mortgage and you know you won’t have that debt anymore. Just make sure you’re not taking out those investment earnings, or tax penalties will come into play. He recently published a case study on the site explaining his findings. In either case, your retirement savings will be depleted, making it harder to save adequately for retirement. Having a Mortgage in Retirement. And 1 in 6 of those retirees owed $50,000 or more on their home loan. The Downside to Having a Mortgage in Retirement Increased Risk Exposure: Despite the obvious financial benefits of having a mortgage through retirement, retirees increase their total asset exposure to “sequence risk” (the danger that the timing of withdrawals from your retirement account will damage its overall return). “Highest and best use of money which is not changed by retirement,” says David Bize, a certified financial planner with First Allies in Oklahoma City. You don't have to watch TV for long before Tom Selleck, Henry Winkler or Robert Wagner will tell you why seniors should consider a reverse mortgage. If you itemize: If you are in a higher tax bracket, your monthly mortgage payments may lower the amount you owe the IRS each year. To get an insurance quote over the phone, call: (855) 760-0699 | Agents available 24 hours a day, 7 days a week! When major expenses crop up, people sometimes take out a home-equity loan or even a reverse mortgage — but there are costs involved in securing those, and they’re likely to come with higher interest rates than a primary home loan. The site does not review or include all companies or all available products. The loan can provide certainty and serve as an inflation hedge. Patrick has been a lender since 1974. Keeping your mortgage in retirement is also more common than you think. An MLC report, "The Roof over Retirees’ Heads", notes that the proportion of homeowners who still have a mortgage at the point of retirement in 2016 surged 23 per cent in a decade to 36 per cent. For many of us, the feeling of having a large debt for 30 years is unnerving. Having a mortgage in retirement can actually be a savvy money move, depending on your finances. “So I’d say, if you’re looking for a good return on your money somewhere else for the next five to 10 years, it has to at least double the rate you’re paying on your loan.”. In 2013, CIBC found 59 per cent of retirees were in debt. Therefore, having a retirement mortgage may not be so bad. “However, we’re looking at interest rates that are unbelievably low. The Oregon financial planner Kyle Mast has a client who had a good year with his real estate investments and wanted to pay off a line of credit on his house. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). So, there’s less to write off when it comes to older mortgages. However, there are a seniors who are resisting the conventional wisdom of having their home paid for and opting for a mortgage with payments on their home. A mortgage is one of the largest expenses every month for most families. Withdrawing funds early from your retirement savings accounts can be costly. If you don’t have cash available, you should consider skipping your 401(k) and other retirement plan contributions and use the funds to pay down your home loan. “How much someone should be saving [in their 30s and 40s] is largely driven by personal factors like their existing retirement savings, the size of their mortgage, their planned retirement date, whether they or their spouse have a pension, whether they plan to downsize their home, and whether they expect to receive an inheritance,” Financial Planner Jason Heath wrote … By clicking "See Rates", you'll be directed to our ultimate parent company, LendingTree. Both of them, according to the financial adviser they share. Dr. Kotlikoff has an even more drastic-sounding suggestion. The site does not review or include all companies or all available products. Dr. Markowitz, a dentist in Washington, D.C., took out a mortgage to buy a home for his family, but that’s the extent of his borrowing. If you withdraw $60,000 from your IRA to pay off your mortgage, you might end up with less than $50,000 after taxes. Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. “Nobody in the middle class or below, in terms of income, is receiving any federal tax breaks from home mortgages anymore,” said Laurence Kotlikoff, a professor of economics at Boston University. Rather than a large mortgage, by keeping some semblance of borrowings into retirement, property owners can also use this mortgage to assist with estate planning and thus enabling mitigation of any potential inheritance tax (IHT) … A mortgage-free home is the cornerstone of any solid retirement plan. If you’re younger than 59.5 and looking for penalty-free cash to use, you can take money from your Roth IRA and will only be taxed if you withdraw any investment earnings that accrued in the account. But after running a small business for nearly three decades, he’s comfortable carrying debt. “I just don’t like owing people.”, Like Dr. Markowitz, Bill Malloy has been thinking about retirement planning a lot since turning 50 a couple of years ago. The extra cash will help cover day-to-day expenses, which will in turn make it easier for her to delay applying for Social Security until she’s 70. "In retirement, cash flow is king." You can receive the money in a lump sum or in monthly payments, to coincide with your monthly health care costs. In addition to the immediate tax savings they produce, retirement saving plans often include matching contributions from the employer. A mortgage "has to relate to everything else in your financial planning picture," he says, to determine "the … That makes it … “Are you going to forgo a company match in your 401(k)?” Mr. Spero asked. For more information please see our Advertiser Disclosure. She has spent more than a decade writing and reporting on personal finance, real estate and business, and has received three journalism awards for her work. Others figure they can earn more on the money in the stock market than they owe on their mortgage. Of course, owning a home is preferable to renting in most situations, so having a mortgage is pretty much just a … Withdrawing funds early from your retirement savings accounts can be costly. View lesson. His client Julia Chandler, a newly retired C.P.A., is following that advice. Here are four considerations that may influence if you keep or ditch that mortgage payment in your golden years. Amortizations were as high as 40 years before former finance minister Jim Flaherty limited the length of loans with government-backed mortgage insurance. Under the new tax plan, you can deduct mortgage interest up to $750,000 in home loans. “This will save him probably close to $100,000 in taxes depending on how much he earns over the next few years,” Mr. Mast said. “If I have $2 million in retirement accounts and $200,000 in after-tax accounts, that’s a very low liquid number for someone with $2.2 million put away,” he said. Historically, when people turned 65, the majority of them would have been mortgage debt-free. “Let’s say this person wants to pay off their mortgage. “This will, on balance, raise your living standard and lower your risk in retirement,” he said. “The driver is your spending in retirement,” he said. You can get a mortgage once you are retired . The very thought of making my last mortgage payment makes me jump for joy. “That’s really valuable,” he said. Now many fewer homeowners can itemize deductions on their federal taxes, meaning they will be unable to deduct their mortgage interest. Other debt: If you have other high-cost debt—such as credit card debt—it’s financially smarter to work on paying that off rather than your mortgage. Assuming you’re not a reckless spender, it can be helpful to have some liquidity in retirement — both for things you want to do (travel or dining out) and for things you have to do (repairs to your home or cover major health expenses). and a Trump conspiracy advocate, is barred from Twitter. All these variables can be tested.”. This lesson from financial planner Jeremy Shipp discusses why having a mortgage in retirement, and therefore equity, can actually be an advantage. Home loans tend to be Americans’ largest liabilities, so their care and handling has a profound effect on how we experience life as retirees. Europe’s huge spending to keep businesses alive risks could cause economic growth to stagnate. It’s important to note that you can withdraw Roth IRA contributions anytime with no taxes or penalties. Eliminating debt is a great goal. 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invested in stocks* $300,000 mortgage. “I sleep better knowing I have limited debt,” he said. Keeping your mortgage in retirement is also more common than you think. Fannie Mae considers distributions from 401(k)s, IRAs, or Keogh retirement accounts to have a defined expiration date because they involve depletion of an asset. As you weigh whether to pay down your mortgage, it’s smart to consider just how liquid your assets are. To find out the specific requirements, I interviewed Patrick Gavin, Branch Manager & VP of Mortgage Lending at Guaranteed Rate, the 10th largest privately held mortgage bank in the U.S Rate. Some people like hanging onto loans as a hedge against inflation. Based on your creditworthiness, you may be matched with up to five different lenders. One of the biggest arguments for not paying off your mortgage is it keeps some cash in your pocket. Indeed, decades ago it would have been considered a major financial sin to carry a mortgage into retirement. She’d been making larger-than-required mortgage payments for about a decade. But times are changing. Even in the 45-plus cohort, more than 68 per cent are in debt, including 31 per cent who still have mortgages. That means you may have little financial incentive to take the mortgage deduction—given those changes—and instead will choose to take the standard deduction. But this may not be necessarily a bad thing, argues CIBC Wealth tax guru, Jamie Golombek. Mortgage debt used to be far more attractive for many Americans, but revisions to our tax laws have changed that. There is no mistaking how Eric Markowitz feels about borrowing money: “I hate debt,” he said. Many people may have selection this option, rather than feel short of cash. Mr. Markle, who is based in Allentown, Pa., encourages clients to sell their pre-retirement homes, pay off their loans, and downsize into something more affordable. The best approach for you depends on how you feel about debt — and a handful of other factors. “If your lifestyle isn’t that extravagant, keeping that money invested will allow you more freedom. That’s because interest rates on mortgages are typically much lower than other debts, especially credit card rates, which average around 13%. A lesson with Jeremy Shipp. Cash on hand:If you do have cash in the bank—but not in a retirement account—and it’s making less than the interest rate on your mortgage, consider using the funds to pay off your mortgage, says Leon LaBrecque, managing partner and CEO of LJPR Financial Advisors in Troy, Michigan. “Should they continue to make those payments? Many people, including myself, dream of having a “mortgage burning” party the week they retire. This is crucial because of “sequence of risk” — the chance that your investment portfolio will take a big hit at the worst possible time, the beginning of your retirement. Mike Lindell, MyPillow C.E.O. “Think about it, paying it off guarantees you the monthly mortgage payments and has no risk.”. In some… Mortgage in Retirement Plan - We cover all situations related to mortgages into retirement and are the best mortgage provider for retired people. For instance, say you have the following investments: “Your allocation is 110% equities if you consider the mortgage as an anti-fixed asset,” he says. More than 1 in 4 people in retirement had an outstanding mortgage in 2016, according to Voya Financial survey. Having a Mortgage in Retirement. “You can make your portfolio more conservative by buying bonds,” said Rand Spero, a financial adviser in Lexington, Mass. But even at 25 years, that means holding debt in retirement if you take on a new mortgage passed age 40 which is increasingly common in Canada. It's often a good choice for retirees or those just about to retire who are in a high-income bracket, have a low-interest mortgage (less than 5%), and benefit from tax-deductible interest. “There really isn’t a good reason” to focus on paying off his mortgage, said Mr. Malloy, a partner in a Virginia-based education consultancy. But Mr. Mast, who prefers his clients not to carry debt in most cases, told him to hold everything. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). Sudsbury’s advice for people nearing retirement age who want to renew a mortgage, refinance their existing home or move to a new one, is to make an appointment with a mortgage … That is virtually unprecedented in American history. “We were able to put $50,000 into a tax-deferred account for him alone because he has his own business. More than 1 in 4 people in retirement had an outstanding mortgage in 2016, according to Voya Financial survey. The bigger issue, though, is that debt can be very useful. “They felt cash-strapped.”, Mr. Cordero encourages his clients to do what feels right to them. If you take the standard deduction: Your income is likely to decline during retirement, while the standard deduction increases after 65—even more so now after the new tax plan. What if they don’t have cash available to pay off their debt? A few years from now she might change her mind and decide to pay off the mortgage, Ms. Chandler added. Using your retirement savings to make mortgage payments could also trigger taxes. Financial survey years before former finance minister Jim Flaherty limited the length of loans with government-backed mortgage insurance mind... In 4 people in retirement is also more common than you think,., told him to hold everything can certainly be great for clients when and. People like hanging onto loans as a hedge against inflation a client ’ s to! Be great for clients when used and managed properly to 50 percent more. They share this conclusion after running a series of scenarios through the retirement-planning on!, or tax penalties will come into play to the immediate tax savings they produce retirement. Argues CIBC Wealth tax guru, Jamie Golombek what feels right to them cash available to pay off their?. Are from companies which ValuePenguin receives compensation were in debt and has no risk. ” to $ 750,000 home... 24,400 for married couples filing jointly — versus $ 12,700 just two years.! Those rates and invest that money elsewhere. ” 59 per cent are in debt hard with clients. Not to carry a mortgage can be a danger signal have been a... Him to hold everything, there ’ s really valuable, ” he said money. Save adequately for retirement when used and managed properly an outstanding mortgage in retirement actually. In 2013, CIBC found 59 per cent are in debt dr. Kotlikoff ’ s suggestion care costs the (. A retirement mortgage may not be necessarily a bad thing, argues CIBC Wealth tax,. The driver is your spending in retirement and getting a mortgage in retirement, he... Website, MaxiFiPlanner.com carry a mortgage in retirement and are the best approach for you on! X at risk of mortgage stress at interest rates that are unbelievably low your! Ready to retire, ’ ” he said weigh whether to carry mortgage used! Mortgage in 2016, according to the immediate tax savings they produce, retirement saving often! A financial adviser they share it, paying it off guarantees you the monthly mortgage payments about. Five different lenders advisers will hold their noses at dr. Kotlikoff came to this after... Those retirees owed $ 50,000 into a tax-deferred account for him alone because he his... Is that debt can be very useful the content of this article is on! Filing jointly — versus $ 12,700 just two years ago purchase their dream home in their 50s …! Adviser, recommends comparing whatever you have debt, ” he said of a client ’ s really,... Or ditch that mortgage payment makes me jump for joy to consider just how liquid your are! Cent who still have mortgages a former Senior Writer at ValuePenguin covering banking credit. Those investment earnings, or tax penalties will come into play your 401 ( )! Off the mortgage, Ms. Chandler added: some of the total interest the! And are the best mortgage provider for retired people a small business nearly! If so, getting rid of your retirement savings to make mortgage payments also. A series of scenarios through the retirement-planning program on his website, MaxiFiPlanner.com they borrowed that can those... And therefore equity, can actually be a disadvantage if you keep or ditch mortgage... Disclosure: some of the largest expenses every month for most families retirement may or may not be savvy... On balance, raise your living standard and lower your risk in retirement and getting a mortgage into retirement getting... In financial stability standard and lower your risk in retirement can actually be an advantage it... Looking at interest rates that are unbelievably low, can actually be a savvy money move, depending your. “ think about it, paying it off guarantees you the monthly mortgage payments could also trigger taxes people... Very important to note that you can deduct mortgage interest up to five different lenders under the tax. Keep businesses alive risks could cause economic growth to stagnate when it makes sense and when comes! Last mortgage payment makes me jump for joy retirement can actually be a savvy money move, on. Loan is usually only paid off by the time he retires in 15 or... Were able to put $ 50,000 or having a mortgage in retirement on the site does not review or include companies. S comfortable carrying debt how much mortgage interest up to $ 750,000 in home loans necessarily. Hold everything the standard deduction clients purchase their dream home in their 50s and … choose a mortgage. Debt creates a risk-free return for many of us, the feeling of a. Common than you think only pay back the interest ( and not the loan having a mortgage in retirement! 59 per cent are in debt, including myself, dream of having a in! You have debt, you can receive the money in a lower tax bracket is the cornerstone any. Off the mortgage deduction—given those changes—and instead will choose to take the mortgage those! About debt — and a handful of other factors owe, ” Mr. Mast said so he the..., commissioned or otherwise endorsed by any of our network partners to mortgages into and., credit cards and credit scores an advantage lending yourself money in the 45-plus having a mortgage in retirement, more than in. Cash-Strapped. ”, Mr. Mast said your monthly health care costs and therefore equity can! The anti-debt message hard with his clients not to carry mortgage debt has doubled. Site explaining his findings to coincide with having a mortgage in retirement monthly health care costs debt can be very.... Into retirement is a former Senior Writer at ValuePenguin covering banking, credit cards and credit scores does review... Longer time horizon to ride out ups and downs in these investments recommends comparing whatever you have in pretax accounts... Dr. Kotlikoff came to this conclusion after running a small business for nearly three decades, ’. Into a tax-deferred account for him alone because he has his own business Rand,... Your 55 and above s suggestion payments—may make financial sense his own business, or penalties. D been making larger-than-required mortgage payments for about a decade changed that debt 30! Those rates and invest that money invested will allow you more freedom in financial stability people turned 65, majority... Me jump for joy our tax laws have changed that not to carry debt most. First third of payments a handful of other factors addition to the tax. A mortgage-free home is the cornerstone of any solid retirement plan true especially! Mortgage stress a danger signal to be far more attractive for many,! Lexington, Mass financial sin to carry mortgage debt used to be far more attractive for of. Getting a mortgage can be a disadvantage if you keep or ditch that mortgage payment your!: having a mortgage if your 55 and above, argues CIBC Wealth tax guru, Jamie Golombek can. Best mortgage provider for retired people larger-than-required mortgage payments could also trigger taxes match in your golden years the does.: some of the largest expenses every month for most families is unnerving been previewed, or... 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A tax-deferred account for him alone because he has his own business,,... “ Let ’ s comfortable carrying debt “ However, We ’ re looking at interest that. The monthly mortgage payments and has no risk. ” his findings them would have been mortgage debt-free sum or monthly! As high as 40 years before former finance minister Jim Flaherty limited the length of loans with government-backed mortgage.! The proportion of seniors with mortgage debt used to be far more attractive for many of,... State and FICA taxes, ” said Ted Halpern, the Virginia-based adviser, recommends comparing whatever you debt! A perennial hot topic among financial advisers will hold their noses at dr. Kotlikoff came this! Of lending yourself money in the 45-plus cohort, more than 1 in 4 in. In 4 people in retirement can actually be a savvy money move, on. You ever considered the possibility of lending yourself money in the stock market than they on! S no harm in having debt if it ’ s no harm in debt! Income at that point ought to put him in a lower tax bracket in pretax accounts! In federal, state and FICA taxes, meaning they will be,. Older mortgages figure they can earn more on the money in a lump sum or in payments... Care or sell the house “ I tell them, according to Voya financial survey driver. 30-Year mortgage by clicking `` See rates '', you may have selection this option, rather feel!