When it comes to retirement planning, most people focus on their finances; planning for healthcare costs, living expenses, and having some fun along the way is what we’re all told will make a successful retirement.
I get the question a lot – should I pay off my mortgage. The answer is that depends.
If I told you that I had a vehicle that allowed you to pay $10 in interest to save $3 in taxes, would you do it? The answer is probably no. Assuming that you are in a 30% tax bracket to keep the numbers easy, that’s what a mortgage is – and that math doesn’t always go in your favor. Please be sure to consult your tax advisor with regards to the tax strategies discussed in this article.
A lot of retirement planning starts with what I call a back of the envelope calculation. That’s the calculations that you grab an old piece of mail and scribble some rough numbers. While a back of the envelope calculation isn’t enough, it’s a good start.
As many people approach retirement, they start thinking about moving. Before you move, make sure that you think it through.
Do you have family considerations that will keep you in your current area? Is it important to you to stay close to your children, your grandchildren or even your parents? As people are living longer, those in their sixties and seventies are finding themselves more and more responsible for the care of their parents or other older relatives. If this describes your family, you may want to come up with an alternative game plan before heading south.