Retired and wants to pay off House and HELCO

Hi Clark
We are retires and would like advice :
My wife and I have aquired over $740Kin IRA and Roth also have $ 1500 in pensions a month
SS will pay about $ 4000 a month. We still have $52K on the home at 2.65% and $19K on the HELCO at 8.75%. Question should we pay off both or just the HELCO?


I don’t think Clark reads these boards…but some smart and capable people do. Based on the limited information you provided:

  • Payoff the HELOC. That’s a no-brainer.
  • Assuming the mortgage is fixed at 2.65% then I would not pay it off. You can earn more than that in money market funds. Put your extra funds here.

Things that you didn’t disclose…where would the money come from to payoff the HELOC? What does your current monthly income and expenses look like?

I could take it from my $200K in my Roth to pay off the HELCO.

We would have $ 1500 after all fixed and budgeted expenses