If you can earn more money by investing it than in paying off your mortgage, then of course you should invest it. But where do you look these days for investment returns? T-bills pay almost no interest. The stock market is shaky but in overall decline. Real estate keeps going down in value. Businesses are reluctant to hire. We’re on the verge of a double-dip recession. Businesses think it is most prudent to be in cash. To stay liquid in these uncertain times.
Should she take some of her retirement money and pay off the mortgage on her condo, which she refinanced only a few years ago? I think she shouldn’t take this option off the table. It would take about half of what she has saved to pay off her mortgage. However, it will get rid of her largest monthly financial obligation.