For a larger Social Security check, tap your IRA first

For a larger Social Security check, tap your IRA first
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WED, DEC 05, 2018
YOUR WEALTH
Editor’s Note
Many people these days are worried about having enough to live on in retirement — and rightfully so. What with the soaring price of health care, the ever-rising cost of living and trying to help out your kids, it can lead many a would-be retiree to sleepless nights. What if there was a way to dramatically boost your retirement income? Turns out there is, if you follow this simple strategy.

As writer Annie Nova reports this week, the strategy works like this: Instead of taking Social Security at age 66, wait to claim until 70, when your payout generally will be three-quarters larger. In the meantime, you tap your IRA for daily living. If you start withdrawing from your IRA at, say, 62, your account balance is likely to be smaller by the time you’re 70½ — when you’ll be subject to required minimum distributions. As a result, your pool of taxable IRA money will be less.

And if you’re thinking this won’t work for a lot of people, consider this: It turns out that about 34 percent of beneficiaries who claim their Social Security before 66 — the current full retirement age for most people — have enough money in an IRA to finance the equivalent of at least two years of benefits. A quarter of them had enough to finance at least four years.

For more great stuff like this, please follow me on Twitter @jimpavia and check out CNBC’s Financial Advisor Hub.

5b44bafc1696f.jpg Jim Pavia
@JIMPAVIA
For a larger Social Security check, tap your IRA first
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CONTRIBUTORS
5b460bc98c1ce.png Sharon Epperson
@sharon_epperson
5b44bc0e4b20b.jpg Josh Brown
@ReformedBroker
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