Tried to do a search on this topic but didn't find much.
What I am considering, after doing a few years of ROTH conversions, is to begin withdrawing from our Trad. IRA's at age 60 and delay Social Security benefits until age 70. This will maximize our SS benefits and reduce RMD's from the remaining Trad. IRA. at 70 1/2.
A few caveats I can see:
1) We die sooner than expected and lose SS benefits if we had taken them earlier. (Obviously).
2) By delaying to age 70, Uncle Sam reduces future benefits when we would have been grandfathered in if we had taken benefits earlier. ( We may have time to react and be grandfathered in as well).
3) Obviously, we lose out on future gains between now ( we are ages 58/57) in our Trad. IRA's BUT we get an 8% increase in benefits for every year we wait beyond age 62 ( or maybe full retirement age?) for SS benefits.
Not sure we will even need the extra income since we have pensions, but I can see us spending the most money in retirement between ages 60-70 as we want to do most of our traveling during these 10 years, so it is difficult to estimate annual expenses (discretionary expenses) during this time period.
We are 12 years away from age 70, so we have time. What do you think?
What I am considering, after doing a few years of ROTH conversions, is to begin withdrawing from our Trad. IRA's at age 60 and delay Social Security benefits until age 70. This will maximize our SS benefits and reduce RMD's from the remaining Trad. IRA. at 70 1/2.
A few caveats I can see:
1) We die sooner than expected and lose SS benefits if we had taken them earlier. (Obviously).
2) By delaying to age 70, Uncle Sam reduces future benefits when we would have been grandfathered in if we had taken benefits earlier. ( We may have time to react and be grandfathered in as well).
3) Obviously, we lose out on future gains between now ( we are ages 58/57) in our Trad. IRA's BUT we get an 8% increase in benefits for every year we wait beyond age 62 ( or maybe full retirement age?) for SS benefits.
Not sure we will even need the extra income since we have pensions, but I can see us spending the most money in retirement between ages 60-70 as we want to do most of our traveling during these 10 years, so it is difficult to estimate annual expenses (discretionary expenses) during this time period.
We are 12 years away from age 70, so we have time. What do you think?