Medicare open enrollment ends Dec. 7! Learn more about reviewing coverage, making changes.
Living on a Budget
From the AARP Bulletin Print Edition, November 1, 2009
Q. I’m 63 and want to retire at 65. My only debt is a $79,000 mortgage. I’m about to inherit $120,000. Should I use that to pay off the mortgage, or should I invest it?
A. Unfortunately, there’s no simple answer.
In today’s environment, cash is particularly valuable because it gives you flexibility. If you have few assets for retirement, consider keeping the mortgage and holding the $120,000 in fairly conservative investments.
If, however, your mortgage carries an interest rate above 7 or 8 percent, it might make sense to pay down the debt or refinance.
Consider consulting a financial adviser (visit www.fpanet.org) before making a decision.
Source: Philip White
Featured AARP Member Benefits
See All >
WayForth Home Transition Management
Free consultation and follow-up plan
Personal Loans from Marcus by Goldman Sachs®
No-fee personal loans
Members can save monthly on qualified AT&T wireless plans
Members can save 50% on prescription lenses
You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
Your email address is now confirmed.
You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age.
You can also manage your communication preferences by updating your account at anytime. You will be asked to register or log in.
In the next 24 hours, you will receive an email to confirm your subscription to receive emails
related to AARP volunteering. Once you confirm that subscription, you will regularly
receive communications related to AARP volunteering. In the meantime, please feel free
to search for ways to make a difference in your community at