Asked by Kare007  |  Submitted May 02, 2017

Is it better to pay down my mortgage balance or have an emergency fund on hand in retirement?

The monthly payment is perfectly doable. Not sure if I should reserve my cash for unforeseen expenses.

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  Answers  |  2

May 02, 2017

Hi Kare007

There are always unforeseen expenses.

"The mistake with uncertainty is the belief that there is an antidote."
-- Einstein

As a suggestion, add the "excess" of your expenses into the emergency fund. Keep in mind, there is more to retirement than paying down or off your mortgage.

You may contact us directly to discuss your situation in greater detail. No obligation.

It's not what you make; it's what you keep that determine your lifestyle.

$commenter.renderDisplayableName() | 10.01.20 @ 20:48


May 09, 2017

Hello Kare007! Depending on your income situation it can be good to carry a mortgage balance for several reasons; interest is tax deductible, and it's good for your credit to carry a loan that you pay on time and keep current. You should always have an emergency fund as well, so I would try to balance the two.

Mary Rose Lemons
Mortgage Loan Originator in Glen Allen, VA | 05.10.17 @ 12:01

This is a great tip. I recommend meeting with your financial advisor on a consistent basis as needs and times change. Just like your annual checked with a Doctor, our finances need an annual check up as well. Your financial advisor can obtain a mortgage analysis from your mortgage professional and help structure you financial future to fit your needs

$commenter.renderDisplayableName() | 10.01.20 @ 20:48