Using Your 401(k) to Pay off a Mortgage
By Cayucos Wealth
Published On March 15, 2024
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The question of whether to use retirement savings to pay off a mortgage comes up often, and it’s understandable why. Reducing debt before retirement feels appealing, especially when monthly cash flow becomes a bigger focus. This article walks through the real pros and cons of taking that approach.
It highlights the potential advantages — like freeing up cash and eliminating interest — but also the very real trade-offs, including taxes, reduced retirement assets, and the loss of long-term investment growth. For many people, the answer isn’t obvious until all angles are considered.
If you’ve been weighing this decision, this piece offers a helpful overview of what to think about first. It’s a good reminder that the “right” move depends on your broader financial picture, goals, and tax situation.
Read the article
https://www.investopedia.com/articles/personal-finance/101315/using-your-401k-pay-mortgage-pros-and-cons.asp