For now, we are keeping some funds in our tax deferred IRA. This allows us to withdraw money each year to at least match the (recently generous) standard deductions for true tax free earnings.
This we know. You can decide to take smaller payments for a longer period of time, or larger payments for a shorter period of time. Of course, if we knew the date of our demise, the decision when to start in order to maximize our benefit would be easy. For myself, and I suspect for most HD readers, the decision either way is not going to dramatically alter their lives. I chose to start at 62. I enjoy seeing that payment go into my account each month. It makes feel good. Sure, I might live longer than my so called "break-even" point, thus making my decision appear as not being maximized. I can handle that easier than the alternative. But if that's the downside of living longer, I'll take it. Also, my state does not tax SS, but they do tax IRA distributions. I'll take my chances that my money will grow and pass that on to my kids. I can't do that with SS.
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For now, we are keeping some funds in our tax deferred IRA. This allows us to withdraw money each year to at least match the (recently generous) standard deductions for true tax free earnings.
Post: Contrarian Thinking About Roth Conversions
Link to comment from October 16, 2025
This we know. You can decide to take smaller payments for a longer period of time, or larger payments for a shorter period of time. Of course, if we knew the date of our demise, the decision when to start in order to maximize our benefit would be easy. For myself, and I suspect for most HD readers, the decision either way is not going to dramatically alter their lives. I chose to start at 62. I enjoy seeing that payment go into my account each month. It makes feel good. Sure, I might live longer than my so called "break-even" point, thus making my decision appear as not being maximized. I can handle that easier than the alternative. But if that's the downside of living longer, I'll take it. Also, my state does not tax SS, but they do tax IRA distributions. I'll take my chances that my money will grow and pass that on to my kids. I can't do that with SS.
Post: Rehashing the age 70 thing. Tell Dear Dickie what is it that he doesn’t get about SS at age 70?
Link to comment from August 21, 2025