Rethink That Retirement Plan!

Posted on: March 18th, 2013

Like many baby boomers, I’ve spent the past few years trying to be smart about making the right investments and paying off debt. I was lucky to grow up in England to World War Two parents who taught me frugality and that debt was sinful. So I’ve been listening to my Investment Advisor, Philip Rich, and maximizing my 401k contributions, investing to preserve capital and not trying to time the market. And I’ve also been throwing every extra dollar against my mortgage assuming it should be paid off before I am able to retire.

Well what do you know? With mortgage rates this low and in many cases with tax deductible interest, I’ve learned I would be better off investing those extra dollars and just making my monthly mortgage payments. This is really the ideal time to carry debt, when one could arguably do much better investing their money elsewhere at a better rate of return. It won’t take a whole lot to do better anywhere else if your mortgage rate is 3.5%!
Talk to your Client Advisor today and they can help assess your retirement needs and how your mortgage fits into your overall plan. And if you haven’t refinanced your home in the last 12 months, it’s time to check the rates!