I skimmed the paper, but note that it was written in 2007-2008. A LOT has changed since then, financially. While technically it makes sense, and there's a lot of good information in there, I find it a bit dated in some of its assumptions.
I've been working on tax scenarios for the past week or so (TurboTax 2010 is free online)... I did an IRA to Roth conversion and also worked 6 months in 2010 - the taxes on the IRA are incredibly higher if I pay it all in 2010 or half in 2011/2012. So at least that is settled. Pay in 2011/2012.
I was trying to not take SS yet. However, I think I've revised my thinking. I invest actively and I'd like to keep growing my investments. Getting the SS money means I'd have to remove less from various accounts. I have IRA, Roth IRA, and taxable money, 60% in the IRA. I'm doing very well on my investments - I'm mostly in high-dividend stocks that have had significant unrealized capital gains. I'm still looking for new opportunities for high yield stuff and I'm willing to take some risk to get it. (This is just background.)
The thing about SS... the breakeven point for me - where the total money I get by delaying to 65 or 66 is greater than the total money I get if I take it now - is about age 77. I've had health issues. I come from a long-lived family but I can't count on it for me.
So I've pretty much decided to start SS in 2011. It won't affect my taxes much and it will give me an income stream. That is more comfortable for me. OTOH, I actually have enough cash to live on for months... I'm still pondering what to do.
Thanks for posting the article though - it's always good to read what other people's thinking is on this subject.
I've gone to several free dinners at good restaurants by financial planners, just to hear what they say. Sharks! They want to take all my money and manage it, and charge me for the privilege, and make less than I make on it.
But the meals were good ;-)