Annuities

[TuborgP]

Originally Posted by reneeh63

It seems the main reason people don't wait to collect is that either they conflate WAITING with continuing to work (NOT retiring) or they don't want to dip that deeply (temporarily) into their investments. It is a psychological barrier more than a logical one, for some.

I know I'll go far over a 4% withdrawal rate from 62 through 67 but after that I'll be at 2%.

Is that in a tax sheltered account? If so what about RMD’s at 70 1/2. Even if reinvested the invested money will now if invested in equities be subjected to taxes on the distributed capital gains as will dividends and interest. Investment strategies may need to change to reflect taxation and fund turnover in holdings.

[NewbieHere]

Originally Posted by mathjak107

Well even if we have a balanced fund returning 5-6 % real return, that will will still match the delayed ss ...statistically the odds of a balanced fund meeting its average is higher then the odds of even one in a couple living to 95 which is what it takes to see a 6% real return from ss

Im taking SS at 70 for many advantageous reasons. Iran my TurboTax returns on multiple scenarios and it has confirm my decision. I think you have to look at the whole picture. I did a big Roth conversion last year. This year will be a little bit less. But my tax is going down now. Have a large SS actually ends up being very beneficial.

[leastprime]

Originally Posted by TuborgP

Is that in a tax sheltered account? If so what about RMD’s at 70 1/2. Even if reinvested the invested money will now if invested in equities be subjected to taxes on the distributed capital gains as will dividends and interest. Investment strategies may need to change to reflect taxation and fund turnover in holdings.

This is where it gets interesting. My 3rd reason for choosing an annuity vs keeping IRAs in M&I funds.

[mathjak107]

Originally Posted by NewbieHere

Im taking SS at 70 for many advantageous reasons. Iran my TurboTax returns on multiple scenarios and it has confirm my decision. I think you have to look at the whole picture. I did a big Roth conversion last year. This year will be a little bit less. But my tax is going down now. Have a large SS actually ends up being very beneficial.

i did look at the big picture and it favored not delaying beyond 65 for us ... my wife filled at 62 and with a weak work history she was slated to get a 4500 dollar a year spousal adder . so besides the checks i was giving up , there was 4500 a year in spousal not gotten plus i was spending down assets that were now gone forever and could no longer compound .... there was no reason to keep that up so i filed at 65 ..

[leastprime]

^I'm confused (normal). You and spouse took SS prior to FRA? Rather than to wait and get the ~7% guaranteed SS increases?