If possible, try not to let your mortgage payments follow you into retirement, said financial advisor Winnie Sun.

“When you have a mortgage, you really want to focus on paying it down,” said Sun, founder of Sun Group Wealth Partners. “There’s a lot of benefits to this.”

Fewer payments, of course, will leave you with more money in your retirement. Since many people live on a fixed income after their working years, the fewer bills, the better, Sun explained.

More from Straight Talk:
How to simplify your financial life … with two sheets of paper
Roth conversion in high-taxed states is a very bad idea
So the Fed raised rates. What’s the next step for investors?

If you can be mortgage-free, your retirement will also be more secure, Sun said, adding, “You’ll have a true asset” for expenses such as long-term care insurance.

Sun recommended you “up your payment just ever so slightly,” by 10 percent, 5 percent, 1 percent — however much you can afford.

To be sure, people’s mortgage bills have become harder to walk away from. The mean value of mortgage debt for people between the ages of 56 and 61 in 2010 was $73,923, compared with just $27,493 in 1992, according to a recent study.

And while you chip away at your housing debt, you need to make sure you’re leaving room for other important expenses, Sun said. For example, your retirement savings shouldn’t suffer.

Products You May Like

Articles You May Like

Forbes reveals China’s 10 richest people
Why these investors might face a surprise tax bill around the corner
US, EU health care giants jump at opportunities in China during import expo
Here are Bank of America’s top 10 investing themes to watch over the next decade
Roku shares tank despite revenue beat for the third quarter

Leave a Reply

Your email address will not be published. Required fields are marked *