Im receiving approx. 180,000. Im 54. On SSD. Coleect alimony and small pension. Do I pay off my 90,000. mortgage or buy an investment summer home for that price. I also have 3 smaller debts 5200.00 plus 11,000 plus 3200.00. Should I pay these off too or let them ride out? Where do I put the 65,000 that's left If I pay all debts? Im on SS I cant open Roth.
The key to what you are asking is "If you do not pay of these loans, can you earn a safe rate of return that is higher than the interest you are paying on these loans". The answer right now is that without taking on risk, no. Fixed interest rates right now are next to nothing and I would think that you do not want to put the money at risk via stocks or bonds. A possible solution might have been putting the funds in a fixed indexed universal life insurance policy where you would no longer have to pay tax on it again, and it is safe. The problem with that in your case, is that being on SSD, you may not be insurable at this point. You could look at the money you save in mortgage payments as giving yourself a raise in income. I hope this helps. Best of luck!