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  #16  
Old 11-21-2019, 10:14 AM
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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  
Old 11-21-2019, 10:31 AM
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Quote:
Originally Posted by Kerbie View Post
With all due respect, robj, that may get into a conversation we don't want to have here. I understand the need to know, but this isn't the best place.
I was talking about the expected payout relative to today. Not the political/legislative fix.
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  #18  
Old 11-21-2019, 10:58 AM
valleyguy valleyguy is offline
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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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  #19  
Old 11-21-2019, 11:00 AM
sdelsolray sdelsolray is offline
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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.
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  #20  
Old 11-21-2019, 11:17 AM
Kerbie Kerbie is offline
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Quote:
Originally Posted by DenverSteve View Post
The smart move would be to discuss this with your financial adviser.
Agreed, Steve... I am my financial adviser.

I'm not asking out of total ignorance.

Quote:
Originally Posted by robj144 View Post
I was talking about the expected payout relative to today.
Understood, but that is dependent upon issues we won't discuss.
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  #21  
Old 11-21-2019, 11:32 AM
rokdog49 rokdog49 is offline
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Originally Posted by srick View Post
Same decision tree in place here Kerbie. My math is a little simpler, as I am still working at age 66 and hope to work until 70 at which time, the benefit will be about $48,000 per year. IMO, that is such a significant jump (from $26,000 - $48,000), that it's worth delaying as long as possible.
Yes, but God forbid if you pass away at 71, not so much.
Is SS all you will have to live on or do you have other investments?
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  #22  
Old 11-21-2019, 11:37 AM
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Quote:
Originally Posted by rokdog49 View Post
Is SS all you will have to live on or do you have other investments?
Hi Rok,

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.
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  #23  
Old 11-21-2019, 11:58 AM
rokdog49 rokdog49 is offline
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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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Last edited by rokdog49; 11-21-2019 at 12:15 PM.
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  #24  
Old 11-21-2019, 12:01 PM
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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 itís 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  
Old 11-21-2019, 12:13 PM
Kerbie Kerbie is offline
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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.
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  #26  
Old 11-21-2019, 12:22 PM
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Quote:
Originally Posted by Kerbie View Post
I would like to hear thoughts about the decision of when to start taking Social Security payouts. I can see my expected payouts from ages 62 to 70, I understand how to calculate the future value of money and I know about the magical 8% annual return. I'm just curious what types of factors entered into your decision about taking the payouts early, at full retirement or delaying until 70.

Let's stay away from unrelated comments to derail the thread. I've got the decision coming up and you guys represent a wide sample of intelligent opinions. It's a personal decision and everybody's situation is different, but I'm curious if anyone has an idea that hasn't occurred to me yet. Thank you very much for any help you can offer.
There is no answer to a rhetorical question. Spend the $ if you need it, you could die today.
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  #27  
Old 11-21-2019, 12:25 PM
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Quote:
Originally Posted by aknow View Post
There is no answer to a rhetorical question. Spend the $ if you need it, you could die today.
Maybe not a specific answer and I feel the question is real, not rhetorical, the OP just wants to know how others did it and why to see if it would apply in their situation. Nothing wrong with that.

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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Last edited by TomB'sox; 11-21-2019 at 12:49 PM.
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  #28  
Old 11-21-2019, 12:59 PM
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Quote:
Originally Posted by Mbroady View Post
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 itís 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.
Just remember any income over $17640 they hold back $1 for every $2 you make over the $17640,. So like me that would eliminate my SS and and my daughters part,. So im waiting till FRA,. I was ready to take it this year at 62 but couldn't because of my income.
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  #29  
Old 11-21-2019, 01:06 PM
Kerbie Kerbie is offline
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Quote:
Originally Posted by aknow View Post
There is no answer to a rhetorical question.
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.
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  #30  
Old 11-21-2019, 01:07 PM
DoryDavis DoryDavis is offline
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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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