If you come into some money and are trying to figure out whether to pay down your mortgage or save for your retirement, your Certified Financial Planner will likely be able to help you do the math to figure out what makes the most sense financially.
You may also want to consider:
- What is your current mortgage rate? The higher it is, the more likely it’s better for your financial planning to retire this debt.
- What are the tax consequences of each? Often saving money for retirement has very different tax consequences than putting it down on the house.
- How much more do you owe on your mortgage? If you can clear out all your mortgage debt by making this payment, the relief of having this all paid off may make this option preferable.
- How likely are you to save for retirement? If you’re more likely to spend the money than save for retirement, then it may be best to force yourself to put this money aside for your retirement. It may not be a fun financial goal, but it’s really important that you’re able to take care of yourself as you age.