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Why Paying Off Your Mortgage Isn’t Always Best, by Advanced Financial Concepts

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					     Why Paying Off Your Mortgage Isn’t
     Always Best, by Advanced Financial
                  Concepts

Most people think that paying off their mortgage is the best method to
achieve financial freedom and flexibility. Although generally true, there
are some cases where it can be financially damaging.

Often a person who has just retired wants to take a weight off their
mind by paying off their mortgage. However, the most common means
to do this is by withdrawing a large sum from a retirement plan. This
can be a mistake since pension plans are tax-deferrable and more
flexible than keeping money invested in a house.

Another factor to consider is inflation. Since the original sum borrowed
remains the same, over a long period it becomes worth a smaller
amount in relation to the average income. This means that borrowing
over a long period rather than paying back in a lump sum sooner can
often be beneficial.

About the author: Based in Houston, Advanced Financial Concepts
provides advice to clients wishing to make the most of their finances.
Advanced Financial Concepts was founded by Justin F. Shaw.

				
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