#16
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The smart move would be to discuss this with your financial adviser. You will be able to lay out all of your financial issues including all of your personal information you are not able/willing to expose here. If you don't have one imbedded in your personal/liability/life/homeowner's insurance group, you can easily find one locally.
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#17
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I was talking about the expected payout relative to today. Not the political/legislative fix.
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#18
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Seems simple to me, unless you don't expect to live long, delay as long as you can. If you need the money earlier, you need the money....
I'm 72, I waited as long as I could, but then I'm still enjoying my job and still working, I enjoy the mental challenge. I will start reducing my work days over the next few years.
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Fred The secret to life is enjoying the passage of time. |
#19
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Two other aspects of SSI are:
1) If you take early retirement (e.g., at 62) and continue to work, the benefits are reduced $1 for every $2 you earn over an earning limit (which I think is $17,640 in earned income in the year (not investment income)). That changes to a reduction of $1 for every $3 earned in the year before full retirement age ("FRA"). 2) Once you reach FRA the above rule no longer applies but between 50% and 85% of your SSI benefits will be taxed as income is you earn more than $32,000 to $44,000 if you are married. Those limits are lower if you are single. |
#20
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I'm not asking out of total ignorance. Understood, but that is dependent upon issues we won't discuss. |
#21
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Is SS all you will have to live on or do you have other investments?
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Nothing bothers me unless I let it. Martin D18 Gibson J45 Gibson J15 Fender Copperburst Telecaster Squier CV 50 Stratocaster Squier CV 50 Telecaster |
#22
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If that question is for me, the answer is no... I have other assets to live on. If the question is for srick, I bet the answer is the same. |
#23
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Oh man Kerbie...how to respond!
It’s so completely individually-based, it’s impossible to offer advice or even a fair comparison. Here’s where I was and why I did what I did. (Get ready for some heavy reading) First off, the wife started taking her SS benefit at 62. That was seven years ago. She hadn’t worked in years And the SS folks told her to take it because when I started collecting mine hers automatically jumped to 50% of what I would get, which is a lot more money. I retired at 67, so for five of those seven years she was receiving SS and I was still employed...a nice windfall every month. I chose to take my SS immediately upon retirement at 67 for a multitude of reasons. The first was emotional. I worked my whole life and not knowing how long I would live, I’m getting some of that money back NOW. Secondly, as I mentioned, my wife’s benefit jumped to 50% of mine which is over twice what she was getting before. Thirdly and most important of all, we can live quite comfortably on our combined SS benefit. We have no debt...none. No car payments, no mortgage, just a credit card that gets paid off before any interest charges. We have accessible savings for emergencies, a 401k, two annuities and a couple of IRA’s. When I turn 70 and a half, we have to start taking the mandatory minimum withdrawals from our retirement funds and we don’t need that money. Nice problem to have huh. Just so I am clear, we are not wealthy but we planned extremely well thanks to the head bean-counter, my wife. The reason I laid all this out was to show you that what may be right for me means little to you or anyone else depending on your circumstances. The first thing you really need to determine is how much money do you want or need as income and then begin your long term planning.
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Nothing bothers me unless I let it. Martin D18 Gibson J45 Gibson J15 Fender Copperburst Telecaster Squier CV 50 Stratocaster Squier CV 50 Telecaster Last edited by rokdog49; 11-21-2019 at 12:15 PM. |
#24
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Great Question Kirbie
I have 6 years before I hit the 62 years mark. Though I would love not to tap into SS until I hit 70, I need to factor in that my now 2 year old daughter will be 8 when I turn 62. So I need to calculate if it’s better to get full payout at 70 or start early, reducing my payments but adding 10 years of benefits for my daughter. The great unknown of course is how long will I live. I will have to make assumptions when I do the math. I have a couple of years before I have to decide but my goal for the next few years is to get as healthy as I can, which includeds more exercise eating healthy and losing at least 50 (more) LBS.
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#25
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Thanks Rok and Mb... and to all I don't have time to mention. Great responses.
Rok, that's a very interesting situation your wife was in with the disparity between your two amounts. Great choice she made... and that's exactly the kind of situation I'm asking about. And my thanks to everybody for keeping this a tame discussion. May sound crazy, but I'm not really asking advice. That'll come down to my own situation. I'm just curious about how many extraneous factors came into play for everybody. |
#26
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#27
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Seems like there are a lot of us of an age and I am enjoying reading why and how others chose as they did.
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PS. I love guitars! Last edited by TomB'sox; 11-21-2019 at 12:49 PM. |
#28
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#29
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aknow... the question isn't rhetorical at all. I said, "I'm just curious what types of factors entered into your decision..." There is nothing there that is rhetorical. I am not asking anyone what I should do.
CASD57... very good points. Thank you, sir. |
#30
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Given some thought to this for sure. Generally speaking, my understanding is that it can be a wash, for the general population.
In that in the end, the average person gets about the same amount of money, whether they wait and take more, or start sooner and take less. This is just my understanding, of a wider view of it. Therefore, my thinking is take it early. So you make sure to get it. (unless like above you are earning enough that it will reduce substantially. But even then....) My plan is probably to start early.
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