Paying off your mortgage before you retire offers immense peace of mind and financial freedom. In the early 2000s, I took a significant risk by taking on a $1,220,000 mortgage to buy a house in San Francisco at just 28 years old. When the financial crisis hit in 2008, the stress was overwhelming, especially with job security on the line. However, by 2012, I managed to sell a property for a profit and erase a hefty mortgage debt, which was incredibly liberating.
The real turning point came when I decided to buy another house but chose to use cash from selling stocks after a long bull market. This decision to purchase without a mortgage came from the unforgettable relief and better deal leverage that came with not having mortgage debt. This experience solidified my belief in the benefits of being completely debt-free, especially as you approach retirement.
Financial strategies vary widely, and while some may prefer to invest rather than pay off a mortgage early, I advocate for eliminating debt. The freedom from monthly mortgage payments allows for a less stressful life and more financial flexibility. This has been particularly reassuring during economic downturns, like the recent global pandemic, which contrasts sharply with the anxiety I felt during the 2008 crisis.
Living mortgage-free has not only reduced our living costs but also provided a sense of security that is hard to quantify. If you’re contemplating this move, consider the potential to live more boldly with fewer financial burdens. Whether it’s a matter of shifting your investment strategies or enhancing your risk tolerance, the absence of a mortgage can be a game-changer, especially as you near retirement.
Ultimately, achieving financial independence and a worry-free retirement might mean prioritizing mortgage payoff over other investments, especially in uncertain times. This approach has certainly allowed my family and me to live more calmly and confidently, regardless of the economic climate.
