Paid Off College and the Mortgage? What to Do With the Extra Cash.

Retirement savers who’ve paid off their mortgage or have made their last college payment should take a moment to celebrate. Then they should get busy putting their newfound windfall to work.

Given that mortgages and children’s education are two of the biggest budget items for many people, making the last payment on a home or student loan, or ending college savings contributions, can free up a significant chunk of money. Combined with government efforts to encourage catch-up retirement savings, this extra cash can turbocharge 401(k)s and individual retirement accounts.