Part 6/8:
If Elaine files for benefits at 67, she utilizes more accessible funds from her taxable account while minimizing withdrawals from her 401(k) until mandated at age 75. This likely results in a better cash flow position, maintaining liquidity and limiting tax burdens.
Under similar investment assumptions as Jerry, if Elaine waits until 70, her checks will be larger, but her ability to navigate taxes favorably offers substantial benefits. The difference in portfolio value at age 95 shows slightly positive growth when she delays filing, indicating a more advantageous position despite earlier withdrawals.
Key Takeaways
From these cases, key conclusions emerge about the timing of social security benefits: