[M2inOR]

Here is one perspective and opinion.

We purchased a new home in Marsh Bend, 2019. Bond was $31,000 @4.33%

15year mortgage after 20% down and 2.875% interest rate.

Easy decision, as we have taxable savings and pension income, and untapped IRAs with many investments.

If we have too much income, we get penalized with IRMAA surcharges for our Medicare premiums. Ouch! As we got hit because of our 2019 income. We reduced our taxable income in 2020, and 2021 might be lower so those IRMAA surcharges may disappear next year.

Since our investments in taxable as well as tax-protected IRAs are returning much more that the bond and mortgage interest rates, we don't mind the monthly mortgage and yearly bond payments.

Remember, money taken out of your IRA is ordinary taxable income, unless you have a Roth. We don't. Selling investments from a taxable account also increases your income.

Our goal is to minimize taxable income each year, taking out only enough to live on, take vacations, and to pay our bills.

Many, many articles will educate you. Unfortunately, math is required.

Finally, if you have too much cash, no investments, then yes, use that cash to pay things off. Each family has unique circumstances that will guide your decision.