The plan has always been for my wife to take her SS benefits at age 62 and I will take mine at 70. In 1.5 years, I will need to make a decision on whether to turn on my wife's SS benefits at age 62. Since, I'm the higher earner, I will delay my SS benefits until age 70 (12 years from now).

Lately I have been thinking about delaying my wife's benefit until age 67 (her FRA). However, I will need to bridge the 5-year gap (from 62 -67) with some guaranteed income. Such as taking a certain amount from her 401k and buying a product such as an annuity, CD ladder, bond ladder, etc. I have determined that she will need about $31,500 per year for 5 years. With this approach, it will allow us to draw down on her tax-deferred account and reduce RMDs in later years.

I would like to know the pros and cons of this approach and what is the best product (bond ladder, CD ladder, SPIA, MYGA) to generate $31,500 per year in guaranteed income for 5 years. If annuity is the best option, how much would it cost and is an annuity transferable on death?

Lately I have been thinking about delaying my wife's benefit until age 67 (her FRA). However, I will need to bridge the 5-year gap (from 62 -67) with some guaranteed income. Such as taking a certain amount from her 401k and buying a product such as an annuity, CD ladder, bond ladder, etc. I have determined that she will need about $31,500 per year for 5 years. With this approach, it will allow us to draw down on her tax-deferred account and reduce RMDs in later years.

I would like to know the pros and cons of this approach and what is the best product (bond ladder, CD ladder, SPIA, MYGA) to generate $31,500 per year in guaranteed income for 5 years. If annuity is the best option, how much would it cost and is an annuity transferable on death?

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