I am 32 years old, I have paid off my mortgage. I am increasing my 401K contributions to put me into a lower tax bracket like I would be if I had mortgage interest to deduct. Sounds great right? But the problem I have with my plan is, I could die before I retire, so is there a better way to build wealth?
Yes, and you could die next week so why save the money at all. Using your logic their is no point in saving.
Once you’re 59 and a half you can start taking out the money without penalty even if you aren’t retired. Keep putting the money in the 401k. Not only do you get an initial tax deduction, but the money also grows tax free until you take it out.
You might also want to consider contributing to a Roth IRA…you can take out your contributions from a Roth IRA at any time.