How do I retire without a mortgage?

On this week’s episode of the Wiser Roundtable podcast, the team discusses how to retire without a mortgage, and the benefits of doing so.

Listen on Apple Podcasts or watch on YouTube:

Summary:

The team begins the podcast by discussing how to help people think differently about mortgages, and how to retire without one. Some people don’t think about paying their mortgage off before retirement, or it isn’t a priority to them. Over 40% of households age 65-74 have a mortgage on their primary home, and 27% of those 75 and older still have a mortgage. The number of people who still have a mortgage in retirement has significantly increased over the past several decades.

A lot of people don’t think about cash flow in retirement until they are at the age to retire. If you have a mortgage in retirement, that affects your cash flow. When you are in the midst of a financial crisis or market downturn, you don’t know how long it will take for things to get back to normal. Not having a mortgage payment during times like that can give you peace of mind. The Employee Benefit Research Institute does a lot of research on retirees. One of the things they found out in a recent survey was that people simply feel better in retirement when they can see their net worth continually growing.

The stock market won’t always be like it is currently. It is important to have a conservative, proper plan to ensure cash flow until at least age 95. If you make small changes at the beginning of a 30 year savings stretch, that can be a difference in millions of dollars in savings. If you wait to save five years before retirement, it will be much more difficult to be prepared financially.

One way to retire without a mortgage is by not taking out a mortgage longer than your expected retirement age (see Dave Ramsey’s mortgage payoff calculator here). Another way is to find a lower cost living, which would allow you to have greater financial freedom and live the lifestyle you desire in retirement. Lastly, if you want to stay in your current home, look at refinancing to a 30-year mortgage. Try to get the payment to be the lowest possible so it doesn’t affect your cash flow as much going forward.

Timestamps:

0:00 Introduction

3:43 Why Not to Have a Mortgage in Retirement

5:30 Importance of Cash Flow in Retirement

7:07 Peace of Mind in Retirement

13:57 How to Plan Financially for Retirement

19:12 Steps to Retire without a Mortgage

22:10 What if I can’t Pay Off My Mortgage before I Retire?

Links:

Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.

Connect on Social Media:

Twitter, Instagram, Facebook, LinkedIn, and YouTube.

Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.

learn-more-2024-new

Recent posts

  • Avoid the Holiday Spending Hangover: Start the New Year Regret-Free!

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.