[USER]

My Fra retirement is in 2 years at 67. I am trying to figure how to best prepare for retirement.

Current income 105,000. No debt except for mortgage 2000.00 a month

HYSA and CD ladders saving 130,000

Brokerage VTI 25,000

Retirement 401K/IRA/Roth approx 750,00

Question 1

At 67 projected amount will be 3,300. At 67, it will be 4,300
I am debating whether to stop working at FRA 67 but not collect SS until much later so my SS will be bigger.

I am accumulating money in HYSA for this purpose.

Is this a good idea? Thoughts on this idea?

Question 2

About 95% in VTI and 5% in V bond fund. Should I start moving money out from VTI to something more conservative to prepare for retirement or keep in VTI?

Question 3

Any good videos, tutorials, books that you can reccomend that gives you guidance on how to prepare for Retirement?

Thank you so much for any thoughts, suggestions, or guidance.

[Scott]

You don’t include your most important # which is your expenses.

I will assume age 70 SS ($4,300) and rough rule of thumb 4% withdrawal on $750k portfolio ($30k) per annum is sufficient. I also assume as you use “I” not “We’ you are single.

1) Yes generally delaying SS is the best annuity you can buy it is fully CPI protected and tax favored as 85% (max) is taxable at the Federal level.

Especially if you don’t need it and/or you plan to continue work after age 67.

Think of this as longevity insurance.

If you have a terminal health condition and may not live long then that might argue for earlier claiming.

2) What is the money for and when do you need it?

For example it might be a good idea to use some of that money (and invest more conservatively) as a delay bridge (ie to draw from 67-70 until you claim SS.

If your goal is to maximize your withdrawal rate most studies show an equity allocation in the 40-70% range is optimal, but as always it depends on your goals and risk appetite..

If you plan to never spend any of it and leave to heirs it cold be more aggressive.

3) Retirement Planning Guidebooks by Wade Pfau, Your guide to a successful and secure retirement by Larry Swedroe.

[Ron]

Wait till 70 to draw. SS ups your annual amt by 8% every yr you wait until age 70.

It will be very hard to get a GUARANTEED return of 8% anywhere in the next few years.

Plus, if you pass, your higher paycheck will go to your spouse for the rest of their life, if you are married.

In my case, taking care of my wife who will outlive me by 20-30-yrs, was the reason I opted to delay taking SS until age 70.

Further, if your genes are such that you will live to 100 or many of your relatives lived beyond 84, then be sure to wait to 70 to start drawing SS.

[Joe]

Personally, I would be de-risking my portfolio and building a more detailed Retirement Plan.

How much de-risking depends on your Goals.

Priorities, Cashflow Needs and Risk Appetite.
You really need a more detailed plan to help answer the question.

[Bill]

Delaying SS is a good insurance policy. It’s a backstop against outliving your money.

Of course, that assumes you are in good health and decent family history.

The government doesn’t know if your are likely to be above or below average, so you’ll need to make your best informed guess.

[Su]

Delay SS as much as the HYSA will last you,
Maybe at 67 decide to work until 68, save a little more.

Maybe the hysa will last you from 68 to 72,
Let’s say you go from 130k to 200k in 3 years.

I think you are well diversified in your assets already, even on the conservative side.

Most of your net worth is on safe assets.

[Rick]

Isn’t this a variant on the bucket strategy which has been shown to be less, or far less, than a good strategy?

You have about $900k in total. 4% rule says that is an annual income of about $3,600 a month.

And most people, if there really spent time understanding the 4 % limitations vs their own personal journey, will find its 5% or 5.5% rule.

So that could get upwards of $4,100 a month.

Why are you worried about waiting for $1k more income?

What are you thinking on putting and keeping so much in cash equivalents which is not how the 4% rule works?

It is like driving with one foot on the brakes.

[Author]

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