Question: (Luis) I am 65 years old, married & recently retired. I will have significant RMDs starting at 72 based on a projected $2 million in IRAs at 72 (currently about 1.3 million in 80/20 stock/bond mix). I am planning to start yearly ROTH conversions in 2022 until age 72 (from $75,000 to $100,000) to at least the 22% tax bracket based on my taxable income of about $90,000.
My yearly expenses will be about $140,000. My pension will provide about $80,000 of yearly income. I plan to receive my Social Security payments of about $2,400 a month at FRA of 66 & 6 months. I will start to take monthly annuity payments (from a deferred annuity) in January 2022 which, when added to my pension & Social Security, should cover most of my expenses.
I have 2 options for receiving monthly annuity payments. One option is to take the lifetime monthly payment of $1800. The 2nd option is to take the $2600 monthly option for 10 years.
I am leaning towards the 2nd option because it gives me more income over the next 8 years (when I plan to be more active,) before I start taking RMDs at 72. Choosing the 2nd option would leave me with no annuity payments after age 74 so that I would have less income at the same time that I will be taking RMDs & thereby reduce the tax bite, than if I opted for lifetime annuity payments. I would appreciate your perspectives on which annuity option would make the most sense. Also, whether, based on my circumstances, you might feel that taking social security at a different point than at FRA would be more advisable

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