I may need to buy a more expensive SS calculator, but I have two concerns that seem to be overlooked in these models. They all seem to be "breakeven" calculations. Problem 1 They don't seem to take into account "estate value" which seems to me to be the best determinate the best withdrawal date. Any "death date" before the breakeven date automatically means a lower total estate - you have NO estate value for SS, but the IRA belongs to your heirs. Problem 2 - approx $35Kof SS is tax exempt. Where I live/my budget, $60K is a reasonable income to live on. That means I can withdraw $25K from my IRAs without any taxes, whereas any delay after 62, causes that extra $35K of IRA withdrawal to be taxable, for about a $5K hit on Federal and State taxes. In addition, that $35K continues to grow in the IRA. When I plugged these into a simple "estate value" calculation, early withdrawal won every time. Anyone know of a SS calculator that takes these into account?
Comments
I may need to buy a more expensive SS calculator, but I have two concerns that seem to be overlooked in these models. They all seem to be "breakeven" calculations. Problem 1 They don't seem to take into account "estate value" which seems to me to be the best determinate the best withdrawal date. Any "death date" before the breakeven date automatically means a lower total estate - you have NO estate value for SS, but the IRA belongs to your heirs. Problem 2 - approx $35Kof SS is tax exempt. Where I live/my budget, $60K is a reasonable income to live on. That means I can withdraw $25K from my IRAs without any taxes, whereas any delay after 62, causes that extra $35K of IRA withdrawal to be taxable, for about a $5K hit on Federal and State taxes. In addition, that $35K continues to grow in the IRA. When I plugged these into a simple "estate value" calculation, early withdrawal won every time. Anyone know of a SS calculator that takes these into account?
Post: My Time to Claim
Link to comment from March 26, 2022