[DrC]

“As a rule of thumb I tell people that if you’re still paying a mortgage past the age of 50, you’re doing it wrong.”

For those who failed to take your sensible advice (such as the individual raising this question), I don’t understand the following logic:

“It’s probably safe to assume that you’re going to need basically the same amount in retirement as you’re living on now.”

If someone currently is spending 25-30% of their annual income on housing payments and they pay off their mortgage the very day they retire, won’t their retirement expenses be about 20-25% lower? The only on-going expense once the house is paid off are taxes and insurance, or do repair costs in retirement magically rise to equal the amount previously paid to the mortgage lender?

[goat granny]

Everyone should remember that at age 71 you have to take out what the government determines based on your life expencency....(and for some reason they need to know the age of your oldest child) neither myself or my financial guy know why this is necessary.

I have to take out double what I have taken out for the prior years....puts me in a higher tax bracket so I will probably be paying more income taxes which I haven't had to pay outside of what I tell my guy to deduct from my IRA.

[EVO X]

If someone currently is spending 25-30% of their annual income on housing payments and they pay off their mortgage the very day they retire, won’t their retirement expenses be about 20-25% lower?

No, medical expenses will likely eat that up.

[B4Ranch]

>>or do repair costs in retirement magically rise to equal the amount previously paid to the mortgage lender?<<

Looking back I have to say they do because now you have time to all those little things that you contemplated years ago such as putting in the brick fireplace, extending the deck, correcting the irrigation flaws. You know those little things that you could get by without doing when you were working.