Fast Forward - MA5/26 - Paying Down Mortgage with Pennies on the Dollar

About

The fear is specific. Retirement is coming and the thought of carrying a mortgage payment with no employment income to cover it is enough to make anyone want to fast track the pay down. So that's what most people do. They throw every available dollar at the mortgage and compromise everything else in the process. But the problem was never the mortgage balance. It was the cash flow needed to service it. For one couple in their mid fifties, we re-amortized the mortgage to lower the payment and put the freed-up cash flow into a policy built to cover that payment in retirement. A second policy covers retirement income and daily needs. If one of them passes away, the death benefit clears the balance with pennies on the dollar, tax-free.