Expert Recommends: Don’t Rush to Pay Off Mortgage Ahead of Retirement
While it’s true that Baby Boomers in their 50s and 60s are currently carrying much more mortgage debt than their parents did at their age, some experts says that’s OK.
As Greg McBride, chief financial analyst at Bankrate.com, tells CNBC, these boomers don’t necessarily need to rush to get rid of their mortgage debt in order to afford retirement.
“Money tied up in the home is illiquid, and prepaying a mortgage makes no sense if you’re not maximizing your tax-advantaged retirement savings options, including catch-up contributions,” he said. “Money in the bank will pay the bills, home equity will not.”
Image via flickr/401(K) 2012