Considering the information obtained in question 2, should Bill wait until age 67 for his social security benefits? If he waits until 67, how will his monthly Social Security benefit change the answers to question 2? (Hint: calculate his portfolio value as of age 67 and then calculate how long that amount will last if it earns 5 percent annually.)

Mini-Case Bill Petty, 56, just retired after 31 years of teaching. He is a hus- to invest his lump-sum bonus and other accounts now that he band and father of two children who are still dependent. He re- has retired. He also wants to know how much he can withdraw ceived a $150,000 lump-sum retirement bonus and will receive per month, considering he has two children and a nonworking $2,800 per month from his retirement annuity. He has saved spouse. Because he has children, his current monthly expenses $150,000 in a 403(b) retirement plan and another $100,000 in total $5,800. He is not eligible for Social Security until age 62, other accounts. His 403(b) plan is invested in mutual funds, but when he will draw approximately $1,200 per month; however, most of his other investments are in bank accounts earning 2 or he would rather defer drawing on Social Security until age 67 to 3 percent annually. Bill has asked your advice in deciding where increase his monthly benefit amount to $1,550. Mini-Case Bill Petty, 56, just retired after 31 years of teaching. He is a hus- to invest his lump-sum bonus and other accounts now that he band and father of two children who are still dependent. He re- has retired. He also wants to know how much he can withdraw ceived a $150,000 lump-sum retirement bonus and will receive per month, considering he has two children and a nonworking $2,800 per month from his retirement annuity. He has saved spouse. Because he has children, his current monthly expenses $150,000 in a 403(b) retirement plan and another $100,000 in total $5,800. He is not eligible for Social Security until age 62, other accounts. His 403(b) plan is invested in mutual funds, but when he will draw approximately $1,200 per month; however, most of his other investments are in bank accounts earning 2 or he would rather defer drawing on Social Security until age 67 to 3 percent annually. Bill has asked your advice in deciding where increase his monthly benefit amount to $1,550