My wife and I are both retirees. As of now, we have an IRA worth $800,000-plus which is untouched and stocks worth $600,000. We are receiving pensions and Social Security, amounting to about $9,000 a month, but have two mortgages that aren’t paid off. Our primary mortgage has $42,000 left with 2.5% interest but the secondary mortgage is at $160,000 with 8% interest.
I want to know if I should pay my first and second mortgages by selling stock. One third of my retirement funds goes to the mortgages alone, and if I add up all expenses, almost two-thirds are being spent. I am now 70 years old and was thinking of starting to withdraw from my IRA at 73. Should I wait or tap it now?
Paying off both mortgages would bring us into the 22% tax bracket and eventually raise our Medicare premium.
See: I’m 71 and can’t decide if I should pay off my mortgage or get a joint annuity that’s cheaper — what should I do?
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You don’t have to pay your mortgages off by selling your stock. There are a few ways to go about this.
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