I am receiving a legal settlement. I am married. We are both over 60 years old.
2007-01-15 20:36:16 · 8 answers · asked by Curlydu 1 in Business & Finance ➔ Personal Finance
-Husband and Wife over 60 (not much)
-No Debt
-We live under our means
-We are going to put a portion in retirement investments
Wife works part-time
We want to sell this house
2007-01-16 07:26:04 · update #1
You should definitely speak with a Financial Advisor...
There are several things to consider before making a decision such as this. For example, what is the interest rate on the mortgage?
My father received a settlement that was sufficient to pay off his mortgage too, but in the big picture it was not to his benefit to pay it off due to the low interest rate he had verses the interest he could get by investing the money.
You mention you are married as a part of the decision... are you both in good health? Are there any medical concerns in either family histories? Do either of you have Long-Term Care insurance and what are your risks?
You mention also that you're both over 60 years old. Are both or either of you still working? Are either of you currently drawing Social Security benefits? Do you have any children or grandchildren?
In the big picture, remember that Insurance is a poor investment but Investments are poor insurance as well. You should have a proper balance within your portfolio.
Just based on products offered and overall performance, I would recommend to speak to a representative from John Hancock or New York Life... but definitely not someone who had been working for them for less than 10 years.
2007-01-15 21:52:03 · answer #1 · answered by PerfectlyOK2BImperfect 2 · 0⤊ 0⤋
Paying off debt is never the "wrong" answer (it may not always be the absolute "best" thing, but it's never the "wrong" thing).
What is your mortgage rate?
What rate of return do you expect to earn on your investments?
Also, keep in mind that this isn't an "all or nothing" decision. You can always do both.
Another way to think about it: If your house were paid for, would you take out a mortgage to invest?
2007-01-16 08:10:18 · answer #2 · answered by derek 4 · 0⤊ 0⤋
I would. It's a guaranteed return of 7% (or whatever your interest rate is) after tax. That's like a 10% return. Where else can you get that sort of return? And then you won't have to worry about a mortgage and can maybe think of retiring and living with a little less stress... Good luck!
2007-01-15 20:42:24 · answer #3 · answered by kyls 3 · 0⤊ 0⤋
I would. It's a guaranteed return of 7% (or whatever your interest rate is) after tax. That's like a 10% return.
2007-01-15 21:43:43 · answer #4 · answered by Sonu G 5 · 0⤊ 0⤋
If you have other debts, pay off the higher interest rate debts first.
You should also have several months of operating expenses in savings.
And please, please go talk to a financial adviser (or two or three)!
Last year, I took my mother to meet my insurance guy and my Merrill Lynch guy and went over all of her options after my dad died. It was well worth it! Both of us can sleep better!
2007-01-15 20:44:13 · answer #5 · answered by Anonymous · 0⤊ 0⤋
not enough information to be able to answer the question,
how much is the settlement?
what is the balance on your mortgage?
what is your total net worth?
do you any other debts, credit card balances?
2007-01-15 20:47:12 · answer #6 · answered by edoubleyou 4 · 0⤊ 0⤋
yes. as soon as possible.
THEN YOU WILL BE FREE.
i am now.
2007-01-15 20:42:09 · answer #7 · answered by dirtyoldman 4 · 0⤊ 0⤋
as quick as you can
2007-01-15 20:49:43 · answer #8 · answered by John B 4 · 0⤊ 0⤋