Episode #87: Mailbag – Paying Off Your House

Today’s Smart Money Question:

Join us as we feature your email questions. We’ll cover paying off your house and financial planning for married couples.

(Click the featured times below to jump forward in the episode)

Here Are Just A Handful Of Things You’ll Learn:

1:28 – Alan Is Considering Paying Off His House.

He’s hesitant because he doesn’t have many other tax deductions, but he has $100,000 in the bank, and he owes $25,000 on the house.

2:03 – The Dangers Of Sitting In Cash.

Alan isn’t earning much on his cash, and when you factor in inflation, he’s probably losing money as his cash sits in the bank.

2:50 – Considering Tax Deductions.

Alan says he doesn’t have many tax deductions. In reality, he needs to consider whether he’s actually getting a deduction on the amount he currently owes. His payments might simply be paying back the principal.

3:12 – Matt’s Recommendation.

Matt likes the idea of Alan paying off his house. He then suggests Alan establish a home equity line of credit. This line of credit would give him the option of using his house as collateral.

5:02 – Further Considering Taxes.

We get caught up in looking at tax deductions, but we really need to analyze whether the deduction is actually helping us. Matt examines the tax implications of Alan’s decision.

16:26 – Couples Planning.

Sometimes one spouse doesn’t want to be involved in financial planning. While couples can make that work for a short time, both spouses really need to be involved in the planning process. Because one spouse will statistically precede the other in death, the other needs to be ready to manage their finances once they’re on their own.

18:46 – Going It Alone.

You don’t want the surviving spouse to be clueless when it comes to their finances. Coupled with the emotional weight of a death, untangling finances can quickly become a nightmare if they’ve been left in the dark.

The Answer:

Paying off your house as you prepare to retire comes with several benefits. Don't be so caught up in alleviating your tax burden that you miss out on other potential opportunities. - Smart Money Questions

Tweet This

Do You Have A Smart Money Question?

Ask Matt your smart money question. Click here.

GOT A SMART MONEY QUESTION?

Do you have a question that we haven’t covered yet? Just leave me a message and your question just might be on my next podcast!

Why Ask A Question?

Although everyone’s situation is different, your question might help hundreds of other people who are in the same boat. Don’t be afraid of the answers, be afraid of not asking the question!

What Do You Get?

The clearest answer I can give on how to address your retirement question and links to resources that may help you.

Don't Have A Microphone?

Just fill out the form below to ask your question!

SCHEDULE A TIME TO MEET

It’s fast and easy to make an appointment with Matt. You can start with a 30-minute conference call or meet in-person at the office in Malvern, PA.

Book Appointment

Contact

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Smart Money Questions and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. ©2018 All written content on this site is for information purposes only. Opinions expressed herein are solely those of Old Security Group and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Fee based financial planning and investment advisory services are offered by Old Security Group a Registered Investment Advisor in the State of Pennsylvania. Insurance products and services are offered through Old Security Trust Corp. Old Security Group and Old Security Trust Corp. are affiliated companies. The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any State other than the States of Pennsylvania, Delaware and Maryland or where otherwise legally permitted.