Should I lower my mortgage or put my money in a Franklin Tax Free account?

I live in Nevada and I am retiring at the age of 68. Am I better off putting an extra $100,000 toward my mortgage to lower payments about $500 per month, or putting the money in my Franklin Tax Free account to receive approximately $350 per month tax free?

Financial Planning, Taxes
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September 2017

This a question that may be missing some information.  Typically a large prinicple payment to a mortgage would not reduce the payments fgoing forward only shorten the life of the loan.

Before you even consider these options, I would contact your mortgage lender and confirm that this payment would in fact lower the payments.  This is not a common occurence.

In addition, it would be important to know the mortgage interest rate.

I would consider asking this question again with some additional fact to help those answering guide you or find your self a fiduciary advisor like me to help guide you through this decision making process, where you will need to provide additional information.  

Some of the important factors are:

1) Current interest rate of the loan

2) How long do you have left on th eloan

3) Will the loan payments actually be reduced by a large principle payment.

4) What tax bracket are you in?  This will help determine if a tax free fund is even something to consider or if you would be better of with a taxable bond investment.

Best of luck in this process.

September 2017
September 2017
September 2017
September 2017