Part 5/8:
Modeling projections indicates that by age 95, if Jerry waits until 70 and misses out on checks, he potentially reduces the total value of his portfolio by approximately $135,000 compared to filing at 67. Moreover, higher expected returns amplify this effect since withdrawing sooner limits the investment’s growth potential.
Scenario 2: Elaine Bennis
Elaine, on the other hand, has a similar net worth but with a more significant portion in taxable investments (1.5 million taxable vs. 500,000 in a 401(k)). This difference plays a critical role in her decision-making process. Like Jerry, Elaine requires $120,000 annually, but her tax situation differs.