johnstoeckel
Confused about dryer sheets
- Joined
- Nov 15, 2013
- Messages
- 1
I'm wondering if there is some general guidance about the trade-off between taking SS earlier vs. drawing income from investments.
I'm currently age 60 and retired, but my spouse is age 58 and planning to work two more years. We're living off her income until she retires.
When she retires, we'll need some income. Some of that will come from her pension and some from drawing on investments. I'll be age 62 at that time and could start drawing SS which would reduce the amount we would need to draw from investments. Or I could delay drawing SS to age 66 or 70 and draw more from investments to supply our income. Of course, we'll have the same decision to make with her SS a couple years later.
I tried modeling these scenarios with FIRECALC and it seems to indicate that delaying SS for myself and my spouse would be the best approach. I used "Given a success rate, determine spending level" on the "Investigate" tab and ran scenarios with both of us starting SS at age 62 and both of us starting SS at age 70. With a 95% success rate, the FIRECALC calculated spending level increases quite a bit (about 8%) when I delay SS for both of us from age 62 to age 70.
Wondering if there's some general guidance on the trade-offs involved and if the way I modeled it in Firecalc makes sense.
Thanks much.
I'm currently age 60 and retired, but my spouse is age 58 and planning to work two more years. We're living off her income until she retires.
When she retires, we'll need some income. Some of that will come from her pension and some from drawing on investments. I'll be age 62 at that time and could start drawing SS which would reduce the amount we would need to draw from investments. Or I could delay drawing SS to age 66 or 70 and draw more from investments to supply our income. Of course, we'll have the same decision to make with her SS a couple years later.
I tried modeling these scenarios with FIRECALC and it seems to indicate that delaying SS for myself and my spouse would be the best approach. I used "Given a success rate, determine spending level" on the "Investigate" tab and ran scenarios with both of us starting SS at age 62 and both of us starting SS at age 70. With a 95% success rate, the FIRECALC calculated spending level increases quite a bit (about 8%) when I delay SS for both of us from age 62 to age 70.
Wondering if there's some general guidance on the trade-offs involved and if the way I modeled it in Firecalc makes sense.
Thanks much.