16. Save $1,000+ per month – Pay down mortgage with savings if nearing retirement (age 50-55+)
Take at pre-retirement age (60-62) corporate and private (sponsored) pensions (could be $50,000), together with some savings or not and immediately pay off the remainder of the mortgage, saves you $1,000 per month in mortgage payments so you can retire earlier.
Ask your previous employers including government how much your supplemental retirement income would be (monthly and lump sum), including pensions plans, life insurance policies.
If you have a mortgage, of like 30 years, and you are reaching retirement (lets say you are aged 55), and suppose you still have to pay 5 years worth of mortgage payments, you could go to your bank, ask them to fully finish the mortgage (ask them the amount of home equity still to be paid, don’t include the remaining interest payments), if that is $50,000, then using money from your savings accounts, retirement accounts or 401K, and pay the remaining balance. You will instantly save those monthly mortgage payments and you know your house is yours. Another reason to be able to go into pre-retirement. This also proves that when you save money with the family budget, you can close your mortgage 5-10 years earlier. The interest on those savings or retirements or 401K accounts doesn’t beat the interest cost of the mortgage payments. Even the tax-cost for taking money from your 401K to cover the remainder mortgage payments may be well invested.
Use savings to pay off mortgage and retire earlier; 15 years of savings and 15 years of paying off mortgage could fully pay off a 30 year mortgage. After that, rent out house and get into pre-retirement abroad cheaply for $1,000 per month.
Take at pre-retirement age (62) corporate and private (sponsored) pensions (could be $50,000+), together with some savings or not and immediately pay off the remainder of the mortgage, saves you $1,000 per month in mortgage payments so you can retire earlier.