Q. Conventional wisdom says you should defer taking Social Security until at least your normal full-amount date, or age 70. Does that hold up if you don’t need the age 62 amount and invest it instead? I’m looking at a state municipal bond fund yielding 3.32 percent tax-free or an ETF of preferred stocks yielding at more than 6 percent.
A. Your idea is to take the extra lifetime income you’ll receive if you wait to claim, convert it to a lump sum of cash and put that cash at risk in municipal bonds. Essentially, you’re asking if it’s a good idea to gamble with guaranteed income. Generally, it’s not.