A couple in good health, both retired, with a $1.6 million nest egg, $4,500 monthly from Social Security, and a $260,000 mortgage at a 3% rate contemplate paying it off or investing the money elsewhere. They haven’t paid income tax in years and live in a state with no income tax.

Options include paying off the mortgage from savings, resulting in a reduction of monthly withdrawal from their portfolio. Withdrawing $260,000 could impact investment returns, but they have enough savings to potentially last over 30 years. Rising living costs and healthcare expenses are concerns.

The couple’s low mortgage rate is beneficial, and not all debt is bad. Credit card debt, with high interest rates, is considered worse than a mortgage. While mortgage interest rates are fixed, investment returns are usually higher, potentially benefiting their financial security in the long run.

Read more at Yahoo Finance: We’re in our 70s with a $260K mortgage at 3% interest and $1.6 million in savings. Should we pay off our house in full?