Dear Liz: Should we use a $350,000 inherited non-spousal Roth IRA to pay off our mortgage? We have $285,000 left on our mortgage and would like to retire within 10 years. This is our dream home, and we don’t think we can otherwise pay it off before retiring. We have $1.1 million in other retirement accounts, an emergency fund, a $40,000 pension, and no other debt. Our home is worth $900,000.

Answer: In general, paying off a mortgage before retirement makes a lot of sense. Doing so reduces the amount of money you need to take from retirement funds, which can help make those funds last longer.

Being mortgage-free is not a goal you should pursue at any cost, however. You could end up having too much money tied up in your house and not enough in savings or investments. Also, the inherited Roth has significant advantages. Although you must take minimum distributions from the account, those are tax free and can be based on your life expectancy, which means the bulk of the money can continue growing for quite some time.