Prepay or Defer: An Analysis of the Tradeoff Between Mortgage Prepayment and Tax-Deferred Retirement Savings

This section lists poster sessions as well as concurrent sessions by day, time, and room. Concurrent sessions have multiple presentations. You may search by title, author names, or keyword. A Schedule-at-a-Glance is posted on the Website and will provide the overview. This is the detail.

Prepay or Defer: An Analysis of the Tradeoff Between Mortgage Prepayment and Tax-Deferred Retirement Savings

Thursday, April 11, 2013 at 2:15 PM–3:45 PM PDT

Oxford Room (Breakout Session C)

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Secondary area of focus

Short Abstract

Two major sources of wealth for many households are retirement assets and housing equity. Along the lifecycle leading up to retirement, households face challenging decisions on where to most effectively save their limited excess income, especially as it relates to either prepaying their mortgage or accumulating tax-deferred retirement assets. This paper models the financial tradeoff between prepaying a mortgage or contributing to a tax-deferred retirement (TDR) account, uses the Survey of Consumer Finances to evaluate the influence of other qualitative factors, such as access to a financial planner, on the decision to prepay a mortgage or contribute to a TDR account, and concludes with a brief discussion on how planners might be able to play a key role in helping consumers navigate through anticipated future tax reforms.

2013 Conference

April 10–12, 2013

The Benson Hotel, Portland, Oregon

This section lists poster sessions as well as concurrent sessions by day, time, and room. Concurrent sessions have multiple presentations. You may search by title, author names, or keyword. A Schedule-at-a-Glance is posted on the Website and will provide the overview. This is the detail.