[et_pb_section admin_label=”Section” fullwidth=”on” specialty=”off”][et_pb_fullwidth_header admin_label=”Fullwidth Header” title=”Financial Tip of the Month ” background_layout=”light” text_orientation=”left” header_fullscreen=”off” header_scroll_down=”off” parallax=”off” parallax_method=”off” content_orientation=”center” image_orientation=”center” custom_button_one=”off” button_one_letter_spacing=”0″ button_one_use_icon=”default” button_one_icon_placement=”right” button_one_on_hover=”on” button_one_letter_spacing_hover=”0″ custom_button_two=”off” button_two_letter_spacing=”0″ button_two_use_icon=”default” button_two_icon_placement=”right” button_two_on_hover=”on” button_two_letter_spacing_hover=”0″ subhead=”January 2017″] [\/et_pb_fullwidth_header][\/et_pb_section][et_pb_section admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n
<\/p>\n
By David S Edge<\/p>\n
[spacer height=”04px”]<\/p>\n
Reason Not to Pay Off the Home Mortgage.<\/strong><\/p>\n [spacer height=”04px”] [spacer height=”04px”] [spacer height=”04px”] [spacer height=”04px”] [spacer height=”04px”] [spacer height=”04px”]<\/p>\n Call us! We are here to help!<\/strong><\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image” src=”https:\/\/americanretirementadvisors.com\/wp-content\/uploads\/2017\/01\/Picture5.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” max_width=”200px” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”] By David S Edge [spacer height=”04px”] Reason Not to Pay Off the Home Mortgage. [spacer height=”04px”] In retirement\u2026 it\u2019s all about cash flow. We see many folks who have decided to retire make the mistake of taking their retirement money, or 401K money out of income generating accounts, and pay off their mortgage in […]<\/p>\n","protected":false},"author":1,"featured_media":6736,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" [et_pb_section admin_label=\"section\"][et_pb_row admin_label=\"row\"][\/et_pb_row][\/et_pb_section]<\/p>","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,1],"tags":[58],"class_list":["post-6757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement-planning","category-uncategorized","tag-financial-tips"],"yoast_head":"\n
\nIn retirement\u2026 it\u2019s all about cash flow<\/strong>.
\nWe see many folks who have decided to
\nretire make the mistake of taking their
\nretirement money, or 401K money out of
\nincome generating accounts, and pay off
\ntheir mortgage in a lump sum. What they
\ndon\u2019t realize is that they are now house rich
\nand cash flow poor. They are also more likely
\nto trigger a large income tax penalty for using a chunk of their taxable<\/strong>
\nretirement cash for this lump-sum pay off. Bad dog! You just shot yourself
\nin the foot twice!<\/p>\n
\nKeep your retirement money in play, making your income pay the monthly
\nhouse payment so that when your house is eventually paid off, that same
\nretirement money is now generating extra cash income for your household. In
\nother words, saving for retirement is more important than paying off your
\nhouse!<\/p>\n
\nYou also have to keep in mind that during the last 10-15 years of your
\nmortgage, most of the monthly payment is principal, not interest. So making
\nextra payments during these years (if your income allows) is a better strategy.
\nAn extra payment at this point is reducing your principal and will pay off your
\nhome quicker.<\/p>\n
\nBy paying off your house, you are also losing one of the last major deductions
\non your yearly income tax. Again, you lose.<\/p>\n
\nSo taking retirement money to pay off your home,<\/strong>
\ntriggering a large tax bill, and losing a major tax<\/strong>
\ndeduction are the three stooges of paying off your<\/strong>
\nhome early!<\/strong>
\nMake sure you get professional advice on your whole plan for retirement so
\nyou don\u2019t hit one of these bumps in your road to a financially safe retirement!<\/p>\n
\n[\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"