Re: Tax free or delayed investments after 65?
A fixed or indexed annuity is a viable option since there are no fees. But only if you don't plan on withdrawing more than 10% per year which is what most of them allow without any penalties.
Muni bonds could also be a viable option but there are a couple of things to consider. First, depending on the size of your investment, you may want to consider purchasing them inside a fund or even better, a unit investment trust. Second, munis are paying relatively low rates and, if interest rates rise, the value of your munis may decrease which means you should probably only consider munis that you can hold to maturity. Of course, if you purchase a fund, there is no maturity so you should select a fund with a low duration to minimize any decrease in value.
Lastly, on a different note, you mentioned that you are taking social security but you didn't mention if your wife is. If you are holding out until she is 70 for the higher benefit, since it sounds like you don't need the income, she may be entitled to immediately begin collecting half of your social security while still allowing hers to increase until she is 70 at which time she can continue taking half of yours or switch to hers if it is larger. There are other questions that need to be answered however but if you are aware of the possibility, you can call social security and get more specific information about your specific situation.
|