Delaying Social Security to 70 Could Add $115,000 to A Widow’s Lifetime Income

Core Insights - The article discusses the financial challenges faced by widows, particularly a 66-year-old widow managing $1.6 million in investments and $700,000 in home equity after her spouse's death, emphasizing the urgency of retirement planning [2][3] Financial Considerations - The primary financial concern for a 66-year-old widow is whether her assets can generate sufficient income without depleting the principal too quickly, with the traditional 4% rule suggesting a withdrawal of $40,000 annually from a $1 million portfolio [5] - Current market conditions complicate retirement planning, as stocks have performed well (S&P 500 up 16.8% over the past year), while bonds have shown minimal returns, leading to potential volatility risks in a heavily equity-weighted portfolio [6] Strategic Paths - A recommended strategy is to rebalance the investment portfolio towards income and stability, shifting from an 85% stock allocation to a more conservative 60/40 or 50/50 mix to reduce downside risk [7] - The Schwab US Dividend Equity ETF (SCHD) is highlighted as a viable option, offering a 3.81% yield with a low expense ratio of 0.06%, and includes established dividend-paying companies like Coca-Cola, Merck, and Chevron [8]