74 year old with 250,000. mortage and 325,000. in 401k and IRA. should i take the investment and pay off the house?
House value is 535,00.
- ErikLv 74 weeks ago
Why worry about it now? Just pay it off piece by piece. If you haven't paid it off by the time you die, it won't be your problem.
- babyboomer1001Lv 74 weeks ago
That's up to you. Why don't you consult a financial advisor?
- EvaLv 74 weeks ago
No. The taxes will kill you. I understand your desire to be debt free, but the worst thing you can do is tie up all your cash in a non-liquid asset. If you pull 250k out of your retirement funds you will lose approximately 35 - 40% of it to taxes. You'd have to pull all of it out in order to pay off the mortgage. Not a good idea.
- Christin KLv 74 weeks ago
At age 74, how much longer do you really think you'll be paying on that mortgage? I don't mean to be harsh, but why pay the house off NOW? You're obviously not hurting. There's no reason to deplete any more of your assets.
Instead, put the house in your will, give it to your heirs, WITH the mortgage, and set the money aside in a trust to be paid out to a devoted grandchild for college expenses or a house of their own. Or set aside something for long-term care for yourself. Don't make your final years a hell because you can't pay for something you need. And please make a strong will.
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- SumDudeLv 74 weeks ago
Nah. Enjoy the money and let your heirs worry about the house mortgage.
- A HunchLv 74 weeks ago
You can the money out in smaller annual increments and your tax hit will be about 80% less.
- ALv 74 weeks ago
if you pay off the house you are not going to have enough to live on, Keep the mortgage or sell the house and move into a less expensive one
- Anonymous4 weeks ago
Hope you die of corona old man
- JudyLv 74 weeks ago
No - you'd take a big tax hit.
- Anonymous4 weeks ago
Is the house worth 300k or 3 million? You left out a very important piece of information.
You may not even be able to pay off the mortgage if you liquidate your retirement assets. Taxes are going to eat a big chunk of that (presuming these are pre-tax not Roth accounts).
Are you still working? Can you work?
Basically, you are screwed. Your net worth is close to zero no matter what you do.
My advice? Get job and take in a roommate to pay rent.