The Hidden Tax Hit in Early Retirement Planning Paying off a home mortgage has long been touted as a smart financial move for retirees, freeing up cash and eliminating debt.
However, many individuals are finding that this straightforward approach may not be as simple as it seems. Leslie and Rick, both 57 and 59 respectively, plan to retire soon with an investment portfolio valued at $2.
5 million. They want to use some of these funds to pay off their $200,000 mortgage with a 4% interest rate. But should they prioritize paying down debt or keeping their investments intact?