💨 Abstract

Paying off a mortgage before retirement may seem wise, but financial experts advise against it due to several reasons. Firstly, it reduces liquidity, tying up cash in an illiquid asset. Secondly, you might get better returns by investing that money elsewhere, especially if your mortgage rate is low. Lastly, carrying a mortgage can provide tax benefits through mortgage interest deductions. Keeping liquidity is crucial for flexibility and adapting to opportunities during retirement.

Courtesy: WTOP Staff