Q I'm a retired teacher, about to turn 62, and I have about $500,000 in 403(b) accounts with Vanguard. I currently am pretty much able to live on my retirement checks, although I typically take out about $5,000 to $6,000 a year from regular savings for trips and various home remodeling projects. I've done some calculations, and expect I'll live to age 83.

My tax man said I should apply for Social Security this year. Should I? And should I convert my 403(b) accounts into IRAs?

DAWN

A I can't say whether you should or shouldn't apply for Social Security at age 62. You will receive a lower benefit than you would receive if you wait until full retirement age. That can be a good move, although I think for most people waiting is better -- but not always.

You already mentioned one critical question: Life expectancy. None of us can pierce the fog of the future. But the longer you expect to live the smarter it is to wait for the bigger payout, and vice versa. Another important question is whether you plan on earning money over the next several years. The rules only allow you to earn a small amount of income before you lose $1 for every $2 earned. Once you reach full retirement age, the earnings limit is lifted.

Another question to consider is whether tapping into Social Security now allows your savings to compound. If you're getting a hefty return on your money, waiting can be a savvy move.

If you take Social Security at age 62 and then regret it when you're 70, you can pay back the money you've received -- without penalty or interest -- and start again at a higher value.

The main reason to roll over a 403(b) -- or a 401(k) -- into an IRA is to have better control over the money.

Chris Farrell is economics editor for American Public Media's "Marketplace Money." Send questions to: cfarrell@mpr.org, or to kaching@startribune.com; put "Your Money" in the subject line.