Despite having been a forum member for a while now, I'm looking for some guidance regarding income growth in retirement and how that affects the often-stated advice to delay SS until age 70.
I'm in my very early 60's, married, newly retired, with a $60k annual pension, and about $2.7M in retirement assets. 85% of portfolio is pre-tax. Goals are to live comfortably and then leave what we can to our kids.
Expenses, all in, including health insurance, lumpy items, and taxes, are about $165k annually. So, I've been planning on a $105k draw from the portfolio to complement the $60k pension until age 70 when substantial SS kicks in. At age 70, the $105k draw is at least cut in half. To me, spending down some of the portfolio now and delaying SS to age 70 seems to make sense giving current health and family longevity. RMDs will be reduced as well.
Now, what happens if some residential rental income is added to the mix in the not too distant future (inheritance)? Looking at something like $7k to $8k per month NET (after expenses).
With the income growth, where pension plus rental income now covers 85-90% of expenses, does it still make sense to defer SS to age 70? Or do the RMDs get too unwieldy (pension + rental income + max SS)?
Without the rental income, I think I'm sold on delaying SS to 70. With the rental income, I'm not so sure. Could it be more prudent to slow the spend rate on the portfolio by taking SS earlier and reducing the size of withdrawals?
Thanks![:happy]( "smile")
I'm in my very early 60's, married, newly retired, with a $60k annual pension, and about $2.7M in retirement assets. 85% of portfolio is pre-tax. Goals are to live comfortably and then leave what we can to our kids.
Expenses, all in, including health insurance, lumpy items, and taxes, are about $165k annually. So, I've been planning on a $105k draw from the portfolio to complement the $60k pension until age 70 when substantial SS kicks in. At age 70, the $105k draw is at least cut in half. To me, spending down some of the portfolio now and delaying SS to age 70 seems to make sense giving current health and family longevity. RMDs will be reduced as well.
Now, what happens if some residential rental income is added to the mix in the not too distant future (inheritance)? Looking at something like $7k to $8k per month NET (after expenses).
With the income growth, where pension plus rental income now covers 85-90% of expenses, does it still make sense to defer SS to age 70? Or do the RMDs get too unwieldy (pension + rental income + max SS)?
Without the rental income, I think I'm sold on delaying SS to 70. With the rental income, I'm not so sure. Could it be more prudent to slow the spend rate on the portfolio by taking SS earlier and reducing the size of withdrawals?
Thanks
Statistics: Posted by BernardShakey — Sat Nov 23, 2024 11:29 pm — Replies 1 — Views 233