Spend Your IRA First

Another great gem of wisdom from

 SPEND til THE END

Spend your IRA First - That is totally contrary to conventional wisdom.  However, when the authors take you through the concept, it makes very good sense.

The conventional wisdom says to spend your IRA last so the IRA can grow tax deferred and you only have to pay income tax when you withdraw the money.  That is fine if taxes have not gone up at the end of your retirement.  However, many financial writers are predicting that the United States is facing a tax increase to support all the programs where our government spends our money.

The authors also propose to use the IRA funds to delay receiving Social Security until age 70 when you can maximize your Social Security benefits.  This can increase your social security benefits and lower the taxes you pay on social security after age 70.

I ran these concepts through a couple of the best retirement calculators and the calculators say these concepts work.

Read more about why you should spend your IRA first in SPEND til THE END.