Ask Terry Questions withdrawal from IRA vs claiming social security

withdrawal from IRA vs claiming social security

By Terry Savage on August 20, 2019 | Financial Planning / Retirement

Hi Terry, I am 63, recently retired. Our household expenses are covered by my husbands investments, which are substantial. I have ~$290,000 in IRAs. I would like some personal income and do not know if it is better to withdraw from my IRA and defer taking social security, or to draw on social security and leave my IRA to continue to increase in value (hopefully!). My husband is already drawing his social security.
Sue Moylan

Terry Says

Neither!  It is a huge mistake to take SS before your Full Retirement Age — and it is also a mistake to start taking money out of your IRA now!  (You could move your investments WITHIN the IRA to more conservative things like a money market fund.) I know this will sound supercilious — but if you wanted “personal money” you should have kept working and not retired early(or at least before your SS kicks in at FRA).  Maybe time  for a part-time job?  Unless you have a life-threatening situation, please leave your retirement funds  alone.  The odds say that having made it this far you have nearly 30 years to go!

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