Hawkwin wrote:I met with a client today that is looking to save over $200 a month when she drops her COBRA in January. She is delaying SS, taking some IRA distributions this year to then use that to generate dividend income (tax free under current tax rules) while she postpones SS.You say this as though it helps her end up with more money. I think, from playing around with Ray's spreadsheet, that it costs her money. Since it sounds like you are giving paid advice, can you share what financial modeling you are using to convince yourself that you are advising her correctly?I think now I'm clear on delaying SS being useful for three things:- if you tend to throw away money it enforces savings- it's poverty insurance in case you invest badly- it gets you more money if you live a really long timeBut it does this at the cost of you having less money than if you just take the SS money starting at 62 and shove it in with savings. And you'll continue to have less money until around age 90 when the higher payout finally catches up.-IGU-
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