Last time we discussed Roth Conversions and mentioned the tax rate changes when one goes from MFJ to Single filing, you acknowledged you had not taken that into consideration and finally realized you needed to do so. I don’t see that analysis here. Did you ever get around to considering that?
Considering what? Roth conversions or delayed gratification?
At some point you need to realize that you’ve run out near the end of the rope.
My mom – a depression baby – couldn’t bear to spend her money right up to the end. We told her, “Mom, you and Dad saved all your life for a rainy day. Now Dad’s dead and you are old, THIS is the rainy day you saved for. For goodness sake, spend some of it and enjoy it while you can.”
As for us, we delayed our gratification from our 20’s to our 60’s. Now it is time to enjoy the gratification that we delayed.
Over time, delaying gratification will improve your self-control and ultimately help you achieve your long-term goals faster.
And when you’ve achieved your long-term goal, then what? Keep delaying? Why?
intercst keeps making a motte-and-bailey argument.
There is a minority of people who have the resources to delay SS. Some of these can just barely afford to. The others have so much money that they can easily afford to.
Those that can easily afford to have so much money that the extra SS benefit they collect is essentially pocket change.
There’s 3 groups of people.
- Those who cannot afford to defer SS. They need that money.
- Those who can barely afford to defer. These are doing it on a shoestring.
- Those who can defer without blinking.
Apparently group 1 is 95% of people.
Hence groups 2 & 3 are 5% of people.
Knowing the rapidity which money grows with compounding, I suspect that the majority of this 5% is in group 3.
The only group that needs to think seriously about deferring is group 2.
Group 1 doesn’t need to think about deferring–because they can’t defer.
Group 3 has no need to think about deferring–because they don’t really need the extra SS benefit, they already have plenty enough.
Jim Cramer has a saying about stock management, “Sell them when you can, not when you have to.”
The wife and I were talking about a related thing today. We are glad that we went on cruises in 2006 to 2019. If we had waited until nowadays, we’d be out of luck.
As long as you can afford it, do it now instead of putting it off for the future. When the future comes about, the opportunity may no longer be available.