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My husband is 56, I am 42. We were married a year ago for first time. At that same time, my husband elected the "early out" from fed. gov.

He has named me as his survivor for the retirement annuity. In order to pass on the maximum possible from the annuity to me per month, in the event of his death, he will need to receive $220. less per month permanently while he is alive. The montly annuity payment he receives now is not his full retirement since he left early. My maximum survivor benefit would be $1300/mo from his annuity.

Question: is there a smarter way to invest the $220/mo? We just want to investigate before we make paperwork permanent. We have no children. I am self-employed with Keogh. We're beginners here in Fooldom. thanks!

You didn't say what his payout options are but it sounds like he is receiving a reduced benefit in order to pass on spousal benefits after he dies. If he were to take the option of receiving maximum benefits now, when he dies you would receive nothing.

If you could get out a crystal ball and predict when he dies, you may come out ahead by investing the additional $220/month if he lives a long time. But there are many stories of people dying right after retirement without ever collecting their first check.
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