Joe Speed is retiring this year at his Full Retirement Age (FRA) for receiving Social Security. Joe can begin to collect $30,000 per year this year. However, he read that he can wait for up to 4 years to begin receiving payments and his payment would increase by 8% a year ($2,400) for each of the next 4 years. With interest rates being so low, he thinks this is a great way to receive an 8% return on investment.

If he does wait, what is his expected return on investment, and what are the pros and cons of waiting or starting now?

Answer rating: 100% (QA)

When the amount of 30000 grows 8 each year at the end of 4 years the amount is 145998 The total r... View the full answer