I did a simple calculation. Collect at age 62 and invest all of it. What is collected in year 1 is invested for 5yrs, year 2 collection is invested for 4yrs and so on and accumulates till age 67.
Compare it collecting 34% higher amount at age 67.
What I found is all you need is 2.75% return on money you collect at age 62 to match 34% more collected at age 67 and investing at the same return of 2.75%.
You may not get guaranteed return for 1yr investment unless it is 10yr treasury but if you have down payment money to buy real estate, current interest rate on mortgage is 4.75%. Even after tax deduction of 33% 3.2% is better than 2.75%.
What do you think?
Compare it collecting 34% higher amount at age 67.
What I found is all you need is 2.75% return on money you collect at age 62 to match 34% more collected at age 67 and investing at the same return of 2.75%.
You may not get guaranteed return for 1yr investment unless it is 10yr treasury but if you have down payment money to buy real estate, current interest rate on mortgage is 4.75%. Even after tax deduction of 33% 3.2% is better than 2.75%.
What do you think?
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