Should I pay off debt before retiring or carry it into retirement?
Entering retirement with less debt lowers your required income, which shrinks the withdrawals you need and eases sequence-of-returns risk. High-interest debt like credit cards or personal loans should almost always be cleared before you stop working, since few portfolios reliably beat those rates. A low-rate mortgage is more nuanced: some retirees keep it and invest the difference, while others prize the peace of mind and reduced cash-flow needs of owning free and clear. Also weigh taxes, paying off a mortgage may require a large IRA withdrawal that spikes your taxable income for the year. There's no universal answer, but reducing fixed obligations before retirement gives your plan more breathing room.
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