Your mortgage will play a major role in your retirement planning. If you're like most people, your mortgage is your biggest debt and your house is your most significant asset. So your mortgage is a significant consideration in determining your net worth, and how much money is available to you. It also factors into your tax deductions or lack thereof, as well as your estate planning.

So for planning purposes, you'll need to take a look at the fund you intend to use for supporting yourself through your retirement years, and decide whether your current mortgage arrangement is helping sustain that fund or not.

Perhaps a bigger mortgage will help you invest more upfront cash into that fund. Or a smaller one might allow you to invest more cash flow into it. Maybe a reverse mortgage, which enables you to make use of the equity you already have invested in your home, would be the best option for your retirement planning.

It really depends on your individual situation. Factors to consider include how much you already have saved, what you'll need to save, and what you expect the return on your current investments to be. Please keep in mind that this is only for informational purposes, and that you should consult with appropriate professionals for mortgage, tax, legal or financial planning advice.
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