Ask Terry Questions I Bonds/ Social Security

I Bonds/ Social Security

By Terry Savage on November 04, 2023 | Financial Planning / Retirement

Saw you on WGN the other morning and you said it might be time to sell the I Bonds bought last year. It shows I would have 10,880 if I cashed out now. Should I move that to my Fidelity account and purchase T Bills? I already moved most of my bank savings to T Bills. Even the money market account is paying 4.98%. I will have to wait until 2024 to cash because the extra income will impact my plan.
Can I rollover my pension account to an IRA? If I do so would that money be considered income?
Everyone says that you should wait to take social security. I expect to maybe live to 80. Neither parents nor grandparents made it to that age. I figure better to take the money when I can so I at least get something. I took the monthly amount SS said I would get per month at each age and multiplied by the number of months. At age 77 all the amounts are within a couple thousand dollars of each other. Am I thinking about this incorrectly?

Terry Says

I don’t know how old you are, but your questions reveal you need some unbiased help in managing your finances.
If you haven’t reached full retirement age, then don’t take Social Security early.
If you’re pretty sure you won’t even live to the average age for women who are already in their sixties (that is 88), then go ahead and take Social Security at full retirement age.

Do you have a “pension” from work? If so, when you retire from work you may be given the opportunity to do a lump sum rollover into an IRA. That would avoid any taxes until you actually withdraw the money.

In your case, if you have I-bonds, just hang on to them for 5 years.
Since you already have a TreasuryDirect account (where you purchased the I-bonds, you can make any NEW investments in 6-month T-bills.

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