retirement

7 real retirement worries to focus on

Should I pay off the mortgage?
Should I pay off the mortgage? © rSnapshotPhotos/Shutterstock.com

What you're worried about: You want to pay off the mortgage before you retire.

What you should be concerned about instead: Do you have enough money to pay for property taxes, maintenance and general retirement expenses for the next 25 to 30 years?

"In a low mortgage interest environment, it doesn't make sense to pay off your mortgage," Di Vincenzo says. "When you can earn 4 (percent), 5 (percent) or 6 percent in a corporate bond fund and you're paying only 2.75 percent on your home mortgage and you get a tax deduction -- the math doesn't add up.

"I have seen people pull out a lump sum to pay off their mortgage. It hurts people who are on the borderline of having enough resources to get through retirement. I hate to see people end up with a reverse mortgage."

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