Another reason to reconsider owning a home

An employee at my job site stopped by today to say goodbye. I learned last week that she has retired (accepted an earlier out) but is taking medical leave for the remainder of the month – on orders from her doctor.

This employee told me today that with her pending retirement, she will take a $30K cut in pay. She needs to find a part time job to make up the difference. She provides financial support to her mother. And this employee has not paid off her mortgage. This employee is in her 50’s.

Funny I spoke with a contract employee at through job site this afternoon. He is retired but is working his present job to supplement his income. He told me he still has a mortgage. This employee is in his 60’s.

As everyone is well aware, the economy has drastically changed. Employers attempt to push out older workers because they costs more with salary and benefits compared to a newly hired employee.

I say all of this to point out an obvious fact: employees can no longer expect to remain in their current position until he/she is retirement eligible. So, if you have a hefty mortgage by age 50, you won’t pay off the balance as quickly as one hopes.

Maybe an alarm bell shall ring to symbolize to people between 45 – 50 that they must pay off their mortgage before age you 50!

Is it worth taking out a mortgage at  age 25, age 35 if the time needed to pay off that mortgage has been reduced?

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