Advice for boomers: Pay off your house

What's the best route as you near retirement: Use extra money to pay off the mortgage or pad your investments? That question deserves a new look in light of the recession, argues Mr. GoTo, a baby boomer and blogger who comes down on the side of paying off the house.

The No. 1 reason: A guaranteed rate of return of 6% (or whatever your mortgage rate is) tax-free. "Compare that to what we have experienced in the markets recently," Mr. GoTo says.

• Bing: What's your home worth?
  

No doubt the big debate has been revived in many baby boomer homes as nest eggs take a beating on the stock market. Mr. GoTo says it's a winning proposition to invest in your home sweet home. (This of course assumes you don't have any higher-interest debt.)

Here are a few more reasons from a post at Go To Retirement called "Striving for a mortgage-free life":

• The tax benefit of mortgage interest is often overstated. You're getting a tax break only on the amount of interest that exceeds the standard deduction, he says.

• If the home is paid for, a financial catastrophe such as an illness will be easier to bear.

• You'll have peace of mind. "This is an intangible benefit but it may be one of the most important," he says.