Hi Larry, I am 65 and my wife is 63. We are both in good health. We are both retired. We live on my pension, which usually increases each year, plus withdrawals from deferred compensation accounts (traditional IRAs and a 457 plan). If I start Social Security at full retirement age and if my wife takes the spousal benefit at the same time we will replace the amount we are withdrawing from our deferred compensation plans. One of our financial goals is, upon our deaths, to leave money for family members and charities. To do this it appears that trying to leave as much money in our deferred compensation plans and investing primarily in stocks, is better than continuing to take money out until we each reach 70. What flaw if any do you see with this plan?

Hi. I don't know if you'd call it a flaw, but the earlier you start drawing your benefits prior to age 70, the lower your monthly benefit rate will be for the rest of your life. And, starting your benefits before age 70 will also lower the monthly benefit rate that your wife could potentially receive as a widow. However, if your wife will qualify for spousal benefits while you're still living, she couldn't start collecting those benefits at least until you start drawing your benefits. And, spousal benefits do not get higher if a person waits past their full retirement age (FRA) to start drawing them.

It's true that other than survivor benefits no one could inherit anything from your Social Security account after your death, but it seems like you might come out worse off if you start drawing your benefits early and then end up needing to withdraw funds from your savings to pay for living expenses that aren't covered by your lower monthly Social Security benefit rates. It sounds like you and your wife should strongly consider using either our basic software program (https://maximizemysocialsecurity.com/purchase) or our Maxifi planner software (https://maxifiplanner.com/?gclid=EAIaIQobChMIwua0iOev9gIVR21vBB2x2ALCEAA...) to fully analyze all of your options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry