@PeterD699268 Just read your posting (October 14, 2022) and agree with Gail's reply of the same date. With regard to another plan, have you calculated the amount of SS Benefits you and your spouse will initially forgo should you elect to delay to age 70? Based on the info you provided and the 3 year delay, you will be forgoing $5,000/month ($3,300 + $1,700) for 36 months or $180,000 to receive $1,100 more per month at age 70. It will take you 13 years 8 months to recoup the $180,000. If you factor in a rate of return, you may be closer to $200,000 and 15 years to recoup. If you are using other monies to live on, you need to also factor in the loss of return on those monies that are used. Something to think about.
With regard to paying your spouse compensation for homemaker jobs, I understand the concept. However, it is cumbersome to run payroll and file/pay appropriate FICA taxes. Homemaker is a legitimate job in the Federal rules/regs and earn on average $20,000 to $35,000 annually depending upon how many different jobs the Homemaker performs (i.e. groceries, cooking, washing clothes, child care, etc.) In certain High Cost of Living areas (i.e., Manhattan, etc.), Homemakers may earn significantly more. At a minimum, folks should, at least, take advantage of funding a Spousal IRA ; and, if not eligible, other tax deferred approaches such as Savings Bonds or deferred annuities. You still have time to fund a Spousal IRA for 2022, if otherwise eligible. Good Luck with your plan.
