Should You Save For Your Retirement Or Pay Off Your Mortgage?

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.

Michelle Singeltary writes in the Washington Post about a friend of her’s who hit the retirement age:

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.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (, he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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