How good would it feel to pay off your mortgage early? For most of us, it would feel like a weight lifted off our shoulders, but if you’re nearing retirement or other major life transitions, there are certain considerations to think about before applying a big chunk of change to your mortgage.
In this episode, I use real-life examples to highlight why pushing to pay off your mortgage as fast as possible is sometimes short-sighted, particularly if there are unknowns in your future when it comes to your career, your business, or your stage in life. Listen in as I share how to factor the opportunity cost into your decision-making, some other alternatives to think about, and what to consider to lay the foundation that puts you in the best possible financial position.
Listen to the Full Episode:
What You’ll Learn In Today’s Episode:
- How to know when it’s the right time to pay off your mortgage faster.
- The behavior and psychology of money and investing.
- How a financial planner can help you weigh the pros and cons.
- Other alternatives to consider over paying your mortgage off as quickly as possible.
- How to factor opportunity cost into the equation.
Ideas Worth Sharing:
“If you take a big chunk out to pay off your house, it’s going to cause some risk in your portfolio to generate the amount of income that you need in retirement.” – Jonathan Bednar
“Whatever life looks like in five years, you would at least have a lump sum of cash.” – Jonathan Bednar
“One of the biggest assets you have is time—the longer that you have to let your money grow and compound, the better off you are.” – Jonathan Bednar
“You definitely want to have cash available so that if the storm happens, you’re not cash-strapped.” – Jonathan Bednar
Resources In Today’s Episode:
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