[quote=bearishgurl]
I also agree, SK, but when retirees are just starting out and haven’t yet signed up for MC, they’re not yet sure exactly how much it will cost them to live every month. Many feel is better to have more cash cushion until they figure out the lay of the land, including how much their monthly health premium is going to cost going forward and how many hours they may still need to work.
After the dust settles (MC, SS and possibly other pensions kick in) and the retiree knows if they are going to move to or stay in a particular locale, it is easier to make decisions regarding refinancing or mortgage payoff.
IOW, taking out or keeping a small mortgage keeps the retiree’s options open.
Your “friend” is already 65 or older and is a bit more “well-heeled” than the average retiree (asset-wise). In addition, those behind him won’t get to collect their full SS until age 66-67.[/quote]
Concur. Flexibility is a GREAT reason to have a mortgage even if a retiree has the wherewithal to pay it off, recognizing that it does come with a price. In some cases it’s well worth it.
My friend is almost 63, and he is better off than most. He bought right, saved a lot (despite making almost nothing on his investments), doesn’t live beyond his means, and always borrowed appropriately. Now he’s just looking for hobbies.
