I see this more and more often — a new retiree, or someone thinking about retiring shortly, asks me to review their retirement plan. They want to know: "Will I have enough?" After getting to know them and learning about their goals and what is important to them, I begin by reviewing their balance sheet and notice the $200,000 mortgage at 3.75 percent under the liabilities column.
When I ask them about it, people are always proud of the low rate they locked in. The problem is that you still have to pay the loan off, and that means you have these big payments to make during your retirement years.
Today I make the case for paying off your house before you retire.