Paying off your mortgage ahead of retirement

One crucial aspect of planning for retirement is ensuring that you don’t outlive your retirement funds. We believe that freeing up monthly money is a crucial step towards achieving this goal.

One way to free up money each month is to pay off your mortgage as soon as possible. If you’re nearing retirement, we aim to pay off your mortgage in 9 years or less. By doing so, you can eliminate a significant monthly expense and enjoy greater financial security during your retirement years.

When planning for retirement, we understand the importance of taking proactive steps to safeguard your financial future. That’s why we’re committed to providing you with the tools and resources you need to make informed decisions. Contact Merrimack Wealth Management today to learn more about our retirement planning services and how we can help you achieve your financial goals.

Jeanne was able to pay her personal debts and invest the freed up monthly money to increase her retirement savings with tax advantages

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.