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When official data suggested that U.S. annual inflation hit 4.2% in May \u2014 the highest rate in three years \u2014 President Donald Trump had an unexpected response: “I love the inflation,” he told reporters, according to the BBC (1). He went on to claim that prices would “come down like a rock” when the conflict with Iran is resolved. <\/p>\n
The comments highlight just how volatile and unpredictable Trump’s economy has become. Sudden waves of tariffs, foreign invasions, geopolitical crises and spikes in inflation have made retirement planning significantly more difficult. <\/p>\n
Must Read <\/p>\n
JP Morgan sees gold hitting $6,000\/oz before 2027 \u2014 and a gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide<\/a>\u00a0from Priority Gold <\/p>\n This concern is reflected in the polls, as Trump’s approval rating on the economy dipped to a record-low 29%, with 63% disapproval, according to a YouGov\/The Economist poll (2) published in June. A whopping 57% of respondents to that survey also said that they expect the economy to get worse. <\/p>\n If you’re part of that pessimistic cohort, there is one relatively mundane way to boost your financial security: paying off your home. Here’s how a paid-off property can help you in Trump’s economy. <\/p>\n Shield against the cost of living <\/p>\n The rising cost of living isn’t good for anyone, but it’s particularly hard on borrowers and retirees living on fixed incomes. <\/p>\n High inflation can lead to higher interest rates as a way to cool the economy and Dallas Fed President Lorie Logan recently raised this possibility: “I am increasingly concerned that higher interest rates could be necessary later this year,” she said in a recent speech, according to CNBC (3). <\/p>\n Simply put, if you’re looking to move to a new home, refinance your property or downsize, the prospect of higher mortgage rates should concern you. <\/p>\n If your move is unavoidable, trying to get the best rate possible is still worth the effort. <\/p>\n Freddie Mac recommends shopping around, obtaining quotes from three to five lenders to secure the best possible mortgage rate possible<\/a>. Even a small rate reduction can translate into significant savings over the life of a loan. <\/p>\n Story Continues <\/p>\n To make this process easier, places like the Mortgage Research Center (MRC)<\/a> can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details \u2014 such as your zip code, property type, price range and annual income \u2014 you can view mortgage offers tailored to your needs<\/a> and shop with confidence. <\/p>\n But if you’re happy to stay where you are, paying off your mortgage could help you eliminate a major line item on your annual budget. <\/p>\n It also helps you protect your wealth, as real estate is more likely to retain its value when inflation and volatility are rising. Owning your home free and clear gives you the sense of security and predictability you need to navigate your retirement with confidence. <\/p>\n However, paying off your mortgage in retirement may also have some downsides. <\/p>\n Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going<\/a> <\/p>\n A few downsides <\/p>\n Paying off your mortgage in retirement isn’t without its disadvantages. <\/p>\n Firstly, the move is likely to lock up a lot of your cash in your property, which isn’t necessarily liquid. That means you can’t rely on the cash to fund your living expenses. <\/p>\n To be fair, you could easily tap into liquidity through a Home Equity Line of Credit (HELOC). <\/p>\n It’s a revolving line of credit that uses your home’s equity as collateral, so you can borrow and repay funds as needed \u2014 similar to a credit card. <\/p>\n AmeriSave<\/a> offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states. <\/p>\n It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan upfront. <\/p>\n You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process<\/a>. <\/p>\n There’s also a chance that your mortgage is relatively cheap. <\/p>\n As of June, 2026, the average 30-year fixed mortgage rate is 6.5%, according to the Federal Reserve (4), but the rate was as low as 2.8% in 2021. If you managed to lock in a 30-year mortgage at roughly 3% or less, there is an argument to be made about opportunity costs and the fact that your cash can earn a higher return in stocks or bonds instead. <\/p>\n Striking the right balance isn’t easy, but the good news is you don’t have to do it alone. <\/p>\n Hiring a professional financial planner or tax expert can help you make the right decision on this crucial money move. <\/p>\n If you have a portfolio of $250,000 or more, platforms like WiserAdvisor<\/a> can connect you with vetted professionals who specialize in this kind of planning. <\/p>\n Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. <\/p>\n From there, WiserAdvisor reviews its network to match you \u2014 for free \u2014 with up to three vetted, reputable advisors aligned with your specific needs. <\/p>\n You can then schedule no-obligation consultations<\/a> with your matches to determine who is the best fit for your long-term goals. <\/p>\n WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties and specific financial results are not guaranteed. <\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now<\/a>. <\/p>\n Article Sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines<\/a>. <\/p>\n Bbc (1<\/a>); YouGov (2<\/a>); Cnbc (3<\/a>); Fred Stlouisfed (4<\/a>) <\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind. <\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. When official…\n","protected":false},"author":2,"featured_media":543695,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,969,176,61,1095,60,2416,174,175,1611,1544,230745],"class_list":["post-543694","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-donald-trump","tag-finance","tag-ie","tag-inflation","tag-ireland","tag-mortgage-rates","tag-personal-finance","tag-personalfinance","tag-retirement","tag-retirement-planning","tag-trumps-approval-rating"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/543694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=543694"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/543694\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/543695"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=543694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=543694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=543694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}