Financial Planning for the Middle Class Investor

Should you keep your mortgage in retirement; does it make sense or is it a boondoggle?

Decrease taxes? Mortgage payments could increase taxes in retirement!

The tax benefits of a mortgage have been pounded into our heads. Yet most people have no idea what if any benefit they receive from their mortgage interest. The IRS reports that over 70% of taxpayers do not need to file a Schedule A which is where the deduction is claimed. Have your taxes calculated with and without the mortgage interest. Unless you have exceptionally high income or substantial other deductions you might be shocked by the results! The next question to answer for retirees is does the mortgage actually increase my taxes.

The concept of investing in the markets vs. paying the mortgage is irresistible. After all, the interest is deductible. Does the money stay invested? Spent money does not grow! Paying off the mortgage will provide the guaranteed return equal to the mortgage interest rate...

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