Retire Me - Episode 15 - Pay Down My Mortgage or Invest? Key Questions for a Soon-To-Be Retiree

Welcome to Episode 15 of Retire Me!

Today on the show we discuss whether it makes sense to carry a mortgage into retirement, or whether paying off the mortgage is more sensible for a soon-to-be retiree.

We discuss:

    1) Indebtedness of soon-to-be retirees in Canada

    2) The two main schools of thought regarding mortgages in retirement

    3) Our hypothetical couple, John and Jane, and their approach to whether they should

        a. Pay down their mortgage aggressively in the 5 years heading into retirement; or

        b. Re-finance their mortgage, carry it into retirement, and save the rest in their investment portfolio

    4) We explain why a known rate of return on paying down your mortgage can lead to a better outcome than investing in stocks and bonds heading into retirement

    5) The profile of a retiree who can feel comfortable carrying a mortgage into retirement

Resources used in the creation of this episode:

CIBC 2020 Poll of Indebted Canadians

Jonathan Chevreau - Why You Might Want to Think Twice About Retiring With A Mortgage

Jamie Golombek - Mortgages or Margaritas?

CD Howe Institute - Trends Pre-Retirement

Thanks for listening!

Mark

The information in this material is not intended as investment, tax, or legal advice.  Please consult your advisor or tax professionals.