Should you pay off your mortgage before retirement?
For many Americans, your home is not only your biggest asset---it's also the most emotional one. But when retirement approaches, it sparks a serious question: Should you pay off your mortgage or keep investing that money somewhere else?
In this episode of Law and Financial Order, Warner Wealth's own Robyn Wolcott, alongside attorney Erin Duques, dives into how your home fits into your broader financial and estate planning goals. Here is what you need to know!
While paying off your mortgage before retirement sounds like a no-brainer, it's not always the best financial move. Robyn and Erin explore both sides and discuss the case for paying it off and the case for keeping it. While some people find paying it off brings peace of mind, others wonder if that money can grow more in the market. Not to mention, a paid-off house doesn't help much in a cash crunch.
Robyn talks about how your home isn't just a place to live---it's a powerful tool in your retirement strategy. Whether you plan to sell it, rent it, or stay put, Robyn and Erin urge you to factor in maintenance costs and property taxes, potential home equity loans or reverse mortgages, and emotional readiness to downsize.
There is also the gifting option. And while giving your home to your children may seem like a generous, forward-thinking move, it can create unintended legal and tax consequences. Robyn and Erin caution against transferring your home's title without a well-thought-out plan. If your goal is to keep a legacy and maintain financial flexibility, talk with your advisor before making any big moves.
Whether you pay off your mortgage or not, your home is a central piece of your retirement and estate plan. This episode reminds us that there is no one size all fits answer; your personal goals, tax situation, and cash flow should play a role, and communication with your financial and legal team is essential.
As Robyn says, "It's not just about owning your home, it's about owning your future."
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*Erin Duques is not affiliated with Warner Wealth or LPL Financial.
**Robyn Wolcott, Warner Wealth and LPL Financial do not provide legal advice or services. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.