Should I Pay Off My Mortgage Before Retirement or Invest? WSOC TV [Video]

Inflation hits people on a fixed income the hardest.

Say you’re retired. You’re living off a pension or Social Security (plus drawing down your retirement investments, which include plenty of bonds). It hurts when your dollar keeps losing purchasing power.

It can be scary to be in that situation with a large mortgage obligation. So traditional wisdom says you need to finish paying your mortgage before retiring.

We’re in a strange time as far as mortgage rates, though. The financial crisis in 2007-08 created an environment where the federal government artificially lowered mortgage rates for a decade-plus.

Now that interest rates have normalized, the housing market represents a stark contrast. Those locked into low-rate mortgages sometimes feel stuck in their current home. And those wanting to buy sometimes feel locked out due to relatively expensive home prices coupled with rates double (or more) what they were a few years ago.

But all the focus on the current housing market leaves out another consequence. Especially when it comes to the …