how to manage survivor’s benefits
I am 66, still working making about $66,000. I started claiming my survivor’s benefits (husband, died 6 yrs ago). I have not immediate plans to retire. His benefits are about $2300/month. I have been able to get by, stay in my home (altho I still have a mortgage, just re-financed to lower the payments). I have very little credit card debt. I want to put aside money to fix my house (mostly paint on the inside) and but also reduce my income tax debt from this Soc Sec. I have been thinking of putting $1300/month in my IRA; is this a good strategy? My conventional IRA is about $90,000 now and my employer 403b/pension combination is about $70,000, and equity in the house is over $150,000.
Terry Says
OK, you really should have a session with a FIDUCIARY, FEE-ONLY financial planner — one who agrees to fully disclose all fees and put your interests first. There is a link to the Wealthramp matching service to put you in touch with these planners in one of the blue boxes on the top right corner of my website.
Butlet me take a general stab at this. As long as you are working you can contribute $7,000 a year to a tax-deductible IRA. If taxes move higher, this will make even more sense. But in six years you will be required to start withdrawals. Keep that in mind.
But you have bigger decisions to make at this point — about whether you will stay in your house, and how long. And how much you can withdraw from your accounts to make your money last your lifetime. And how it should be invested meanwhile. That’s where a financial planner can help you specifically. Just make sure your planner will say in writing that he/she is a FIDUCIARY.
