One way to get at which of these options, each with its own advantages and disadvantages, make the most sense for you is to ask yourself this question: Would your
retirement prospects be better if you had more guaranteed income beyond what you'll already get from Social Security or if you had more in
accessible savings
than you already have in 401 (k) s, IRAs and other
retirement accounts?
The advantages of following Mort's approach are: It more quickly provides the security of debt - free home ownership, which will better enable you to weather any economic storms; in case of an emergency, the wealth in your home is more
accessible than assets tied up in a
retirement plan; and while Rob's return in the 401 (k) could fall or (even turn negative), Mort's interest savings on his mortgage is guaranteed.