Solutions 4 Financial Independence: 11/14/17

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BRIDGEPORT, W.Va (WDTV)- Question: I am getting ready to turn 62 and plan to retire. I will have Social Security, company pension, an IRA rollover, and a Roth. I was thinking about taking some money out of my IRA because it has a lifetime income benefit which my Roth IRA does not. The only catch is the benefit would be one percentage point higher (5 instead of 4) If I wait until I am 65 to start.

Answer (John Halterman, Beacon Wealth Management): "Roger, you definitely have a lot of things to consider. Congratulations, I love the fact that you were able to retire at 62. It sounds like you’ve done amazing job at saving money.

In terms of the income benefit, it sounds like you have something that gives you a lifetime benefit as you stated. It is reduced if you take it before the age of 65. There’s no doubt about it.

You’re only talking about three years. And because you’re only talking about three years, that one extra percentage point is a big deal. I would definitely wait if you have money to be able to do that."

Question: What are some things to consider?

Answer (John Halterman, Beacon Wealth Management): "He mentioned he has a Roth IRA, and because he has a Roth IRA and he’s talking about a three-year gap, what I would really consider is depleting the money from the Roth IRA first. That money is going to be tax-free because he is beyond the age of 59 1/2.

Then, if you can run that age 65, then he would be able to take that one percentage point higher. Which if he lives for 30 years, is huge. Definitely wait if you can and complete that Roth IRA."