Sell­ing stocks to pay down mort­gage a false econ­omy for cou­ple

National Post (National Edition) - - FINANCIAL POST - AN­DREW ALLENTUCK

Fam­ily Fi­nance At their re­spec­tive ages of 52 and 49, a B.C. cou­ple we’ll call Hank and Jamie are pros­per­ing. Hank, a man­age­ment con­sul­tant, brings home $7,084 a month. Jamie, a part­time trans­la­tor, brings home $1,700 a month af­ter tax. They have two chil­dren ages 17 and 20, each in uni­ver­sity. They would like to re­tire in eight years.

The $314,000 mort­gage on their $1.2 mil­lion house costs $2,500 a month at 2.1 per cent. It has a dozen years to run. If rates rise to 6 per cent, the monthly pay­ment would go up to as much as $3,000.

Hank and Jamie would like to re­tire with a com­bined, pre-tax in­come of $95,000 a year. That would be about 60 per cent of their present gross in­come. Their $314,000 out­stand­ing mort­gage will not be paid un­til Hank’s age 64 if the present sched­ule is main­tained.

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