A study by the National Bureau of Economic Research shows families lose $1.5 billion annually by prepaying their mortgage instead of funding their tax-deferred retirement account. The study also shows that saving for retirement instead of paying off a mortgage does not increase your risk for default.
If you lose your job and can't make your mortgage payments you can always withdraw from a tax-deferred retirement account to make your mortgage payments. If your financial situations worsens and you do need to file for bankruptcy, your retirement account is protected under the new bankruptcy laws.
This entry was posted on Wednesday, November 22nd, 2006 at 11:28 am and is filed under The Truth about Bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.