74 year old with 250,000. mortage and 325,000. in 401k and IRA. should i take the investment and pay off the house?

Update:

House value is 535,00.

Update 2:

$535,000

12 Answers

Relevance
  • Erik
    Lv 7
    4 weeks ago

    Why worry about it now?  Just pay it off piece by piece.  If you haven't paid it off by the time you die, it won't be your problem.

  • 4 weeks ago

    That's up to you.  Why don't you consult a financial advisor?

  • Eva
    Lv 7
    4 weeks ago

    No. The taxes will kill you. I understand your desire to be debt free, but the worst thing you can do is tie up all your cash in a non-liquid asset.  If you pull 250k out of your retirement funds you will lose approximately 35 - 40% of it to taxes. You'd have to pull all of it out in order to pay off the mortgage. Not a good idea.

  • 4 weeks ago

    At age 74, how much longer do you really think you'll be paying on that mortgage? I don't mean to be harsh, but why pay the house off NOW?  You're obviously not hurting. There's no reason to deplete any more of your assets. 

    Instead, put the house in your will, give it to your heirs, WITH the mortgage, and set the money aside in a trust to be paid out to a devoted grandchild for college expenses or a house of their own. Or set aside something for long-term care for yourself. Don't make your final years a hell because you can't pay for something you need. And please make a strong will. 

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 4 weeks ago

    Nah. Enjoy the money and let your heirs worry about the house mortgage.

  • 4 weeks ago

    No.

    You can the money out in smaller annual increments and your tax hit will be about 80% less. 

  • A
    Lv 7
    4 weeks ago

    if you pay off the house you are not going to have enough to live on,  Keep the mortgage or sell the house and move into a less expensive one

  • Anonymous
    4 weeks ago

    Hope you die of corona old man 

  • Judy
    Lv 7
    4 weeks ago

    No - you'd take a big tax hit.

  • Anonymous
    4 weeks ago

    Is the house worth 300k or 3 million?    You left out a very important piece of information.

    You may not even be able to pay off the mortgage if you liquidate your retirement assets.  Taxes are going to eat a big chunk of that (presuming these are pre-tax not Roth accounts).

    Are you still working?  Can you work?

    Basically, you are screwed.   Your net worth is close to zero no matter what you do.

    My advice?   Get job and take in a roommate to pay rent.

Still have questions? Get answers by asking now.