Early Retirement Years

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Frequently Asked Questions

A: No. Social Security is based on your best 35 years of income. The worst case is that you aren't improving your benefits. If you have less than 35 years on your work record though, you may be improving your benefits slightly.
A: No. I believe that you are concerned about the earnings limit penalty which causes a $1 penalty for every $2 over earned over $16,920. Fortunately, there is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full Social Security benefit for any whole month you are retired, regardless of your yearly earnings.
A: Without knowing all the facts, I believe the non-IRA is the answer. Assuming similar rates of return, the growth of the Roth is tax deferred while the non-IRA interest is taxed as it is earned. Also, the Roth is a better estate planning tool. The non-IRA will be directed by your will and subject to probate; whereas, the Roth has named beneficiaries and is not subject to probate.
Submit a question to  Matthew Hanshaw, CFP®, NSSA®

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