When we sit down and meet with potential clients, there is one main question we ask … Are you 100% sure you’re going to have a great retirement, or do you have some doubt? Most people will respond, “I have some doubt.”
One of the main reasons that they have that answer is due to their monthly mortgage payments. Currently mortgage payments are ranging anywhere from $1,800 – $4000. When we think about monthly retirement income, that can go a long way if we can add that back into our clients’ budgets.
Jeanne is a client of ours who like so many people was worried about having enough money saved for retirement and still being able to stay in her home after retirement and do the things she has always loved to do like travel and go out to restaurants with friends. Her goal was to retire in 10 years, but she had 24 years left of mortgage payments.
By working with Jeanne’s budget, re-allocating inefficient dollars, and giving her a plan, Jeanne will be paying off her mortgage in 9 years. Freeing up her mortgage payment will allow Jeanne to have the type of retirement she wants to have.
Like many others nearing retirement, Jeanne also had some other debts. While we were working to pay off her mortgage in 9 years, we were actually able to ELIMINATE her other personal debts which freed up another $1,050. Jeanne was able to then invest the freed up monthly money to increase her retirement savings with tax advantages.