Nate Weeber – Legacy Life Strategies Financial Advisor

For many families, a home loan constitutes a significant portion of their household debt. As a
result, some people choose to reduce this debt as much as possible before entering retirement.
In fact, nearly one in three retirees have mortgage debt, and 17% of those paying off debt say
that their mortgage is a top financial priority. (1)
But, not all debt is equal. Interest rates have been historically low in recent years, so depending
on your rate, your mortgage may be the cheapest form of debt you hold. (2) As such, using your
extra money in different ways could make sense. Because everyone’s financial situation is
different, many factors can affect choosing whether to pay off your mortgage.

As you assess your own mortgage, here are 5 common questions to consider:
1. Have you maxed out contributions to tax-advantaged accounts?
Preparing to have the income you need in retirement is important – yet, only 46% of retirees
believe they have enough money. (3) If you and your financial representative feel comfortable
with your retirement savings, you may be able to devote income to extra mortgage payments.
However, the final years before retirement are your last opportunity to boost your
contributions. If you still have room to save, you may want to bypass paying off your mortgage
and put those additional funds into tax-advantaged accounts.
2. Will paying down the mortgage affect your taxes?
If you itemize your taxes, then your mortgage interest payments may be deductible. Once you
stop making mortgage payments, you can no longer deduct that interest. Further, choosing to
pay off your mortgage, either before or after you retire, also brings a different set of tax
strategies to consider. If you can still benefit from deducting interest on your taxes, then you
may want to continue doing so. Keep in mind that it’s important to view your financial situation
from a complete perspective before making any tax decisions. (4)
3. Do you have adequate cash reserves?
Emergency savings are critical for an effective, long-term financial strategy. Unexpected life
events, like unemployment, a sudden illness, or home repair, can strain household finances. To
adequately prepare, you should aim to have at least 3 to 6 months of cash reserves on hand. (5)
By doing so, you’ll be better able to cover major expenses without having to liquidate
investments or go into debt. If you do not already have an emergency reserve – or need to set
aside more money – consider boosting your savings before paying down your mortgage.
4. Do you have other debt?

People in the U.S. are carrying lots of debt, which can threaten their financial strategy. In fact,
the average person with debt holds at least $38,000 (excluding mortgages), and 45% of retirees
carry non-mortgage debt. (6) If you find yourself in a similar financial situation, you may want to
put extra money toward other debt. Further, if any of those liabilities have interest rates higher
than your mortgage, then you’ll keep more money in the long run by paying down that debt
5. Will paying off your mortgage bring happiness?
Most financial decisions have emotional components, which is why understanding your long-
term goals is important when making a strategy. For some people, knowing that they own their
home, free and clear, outweighs other financial considerations. If being able to pay off your
mortgage early aligns with your financial goals, it may be the best decision for you.

The Takeaway
Choosing to pay off a mortgage requires carefully looking at your financial life and prioritizing
which strategies make sense. With careful attention to your unique needs, you can make sound
decisions that support your long-term goals. If you have any questions or would like to discuss
this topic further, I’m happy to help you clarify the opportunities available to you.

Kind Regards,
Nathan Weeber
Financial Advisor

Footnotes, disclosures, and sources:
As part of the 2017 Tax Cuts and Jobs Act, mortgage interest deductibility is limited to
mortgages up to $750,000 in principal value.
* Registered Representatives of and securities offered through Cambridge Investment Research,
Inc., a broker dealer, member FINRA/SIPC. Investment Advisor Representatives, Cambridge
Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Vision
Financial Group are separate companies and not affiliated.
These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named
representative, Broker dealer or Investment Advisor, and should not be construed as
investment advice. Neither the named representative nor the named Broker dealer or

Investment Advisor gives tax or legal advice. All information is believed to be from reliable
sources; however, we make no representation as to its completeness or accuracy. Please
consult your financial advisor for further information.
We have not independently verified the information available through the following links. The
links are provided to you as a matter of interest. We make no claim as to their accuracy or
Opinions expressed are subject to change without notice and are not intended as investment
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