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Old 07-01-2018, 01:00 PM
 
Location: Prepperland
13,117 posts, read 9,205,456 times
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[Heretic Flag on]
IMHO, Americans would be better off never enrolling into socialist insecurity (FICA).
FWIW, there is no law compelling participation, nor punishing non-participants.
It is 100% voluntary... and the root of socialism in the USA today.

If ever a substantial number withdrew consent, the system would implode, due to the lack of donors versus the rising number of recipients.
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Old 07-01-2018, 01:35 PM
 
Location: DFW - Coppell / Las Colinas
29,931 posts, read 34,535,636 times
Reputation: 35926
Funny story Freemkt... One of my best Buds from college has been a financial / investment specialist who is now at least 65. He has blown all his money on fun with Ex wives, mistresses, drugs and strippers. He thought the good times and good money would never end but 2008 and age pretty well took care of him.

Luckily he got his act together around age 58 and His retirement plan right now is work as long as possible and delay SS as long as possible since he has no savings.

You are in the same boat with no savings. You need to work and delay as long as you can. Stay away from strippers and ex wives.

The funny part to my buddy was he always wanted to me to invest my money with him. I knew how ADHD and impulsive he was from our college days. Glad I listened to my gut reasoning.
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Old 07-01-2018, 01:36 PM
 
64,629 posts, read 66,129,695 times
Reputation: 43046
at least he made good use of his money. it would have been a shame if it went for medical bills .
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Old 07-01-2018, 01:40 PM
 
Location: Knoxville, TN
976 posts, read 425,771 times
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I am single. I retired in April at 61 because I could take a pension and stay in the employee's healthcare system at the employee rate until I am 65. My pension is modest. I have enough savings that I could delay social security, but I have decided not to. I will collect at 62 and live on my cash flow. My income will be 2/3 pension and 1/3 social security. I will enjoy life more under those conditions than if I have to draw down my savings. That's me. That is how my comfort level works. YMMV
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Old 07-01-2018, 01:41 PM
 
Location: DFW - Coppell / Las Colinas
29,931 posts, read 34,535,636 times
Reputation: 35926
Quote:
Originally Posted by mathjak107 View Post
at least he made good use of his money. it would have been a shame if it went for medical bills .
Yeppers, all he has is good memories. All I have is a bunch of money in the bank (and 1 ex wife).

There was a time he could barely rent a room from a lady much like OP. At least he was never a Burger flipper. Today he actually has a pretty good job selling franchises. He moved to a new city and was not content to work minimum wage.

OP could learn a lot from my Buddy. He's actually pulled himself out of a pretty deep debt hole and doing well. His SS should be good when he decides to collect.
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Old 07-01-2018, 02:14 PM
 
64,629 posts, read 66,129,695 times
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working longer is really a very powerful silver bullet to an under funded retirement .

it can actually be the equivalent of having an extra 800k saved .

if you can work longer and delay ss then there are lots of benefits .

ss grows by 6% a year up to fra and 8% after that .

you are still earning money and saving .

if these are your highest earning years you will increase you earnings record and benefit .

you don't take money to live on for those years from invested assets .

you have up to 8 years less of life to support .

all in all this can be the equal to another 800k saved .
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Old 07-01-2018, 02:15 PM
 
9,273 posts, read 7,295,540 times
Reputation: 22765
Quote:
Originally Posted by jetgraphics View Post
[Heretic Flag on]
IMHO, Americans would be better off never enrolling into socialist insecurity (FICA).
FWIW, there is no law compelling participation, nor punishing non-participants.
It is 100% voluntary... and the root of socialism in the USA today.

If ever a substantial number withdrew consent, the system would implode, due to the lack of donors versus the rising number of recipients.
How better off? Explain. Americans aren't good savers. For its flaws, at least seniors get a little something.
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Old 07-01-2018, 02:19 PM
 
64,629 posts, read 66,129,695 times
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most Americans are not only terribly savers but they have even worse discipline when it comes to investing . ss is the consolation prize and it can be a darn good one . a working couple who max's earnings can see more than 80k in ss and that is today .

the lower they earn the better the ss deal they get . what you are paid proportionately by ss decreases as you earn more .
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Old 07-01-2018, 02:53 PM
 
Location: Ohio
18,014 posts, read 13,243,316 times
Reputation: 13822
Quote:
Originally Posted by freemkt View Post
Turns out most people actually file for SS at 62. It's not clear how many are forced into it by health issues and/or unemployment.
No, they don't. I don't know where you got that information, but it's wrong. The average age is 64, and as of May 2018, there are 59,312,000 beneficiaries and 44,984,000 are 65 and older.

Of the remaining 14,328,000 receiving benefits, 10,345,000 receive Social Security Disability, which is made up of 8,634,000 disabled workers, plus 1,710,000 spouses and children of disabled workers.

That means only 3,983,000 under age 65 are receiving Social Security retirement benefits.

There are 43,024,000 retired workers (the rest are spouses and children receiving benefits).

So, only 9.25% of workers between ages 62 and 64 are receiving retirement benefits.

https://www.ssa.gov/policy/docs/quic...stat_snapshot/

If the majority of people retired at 62 years, or if even a large number retired at 62 years, then the percentage of people between 62 and 64 years would be significantly higher.

If 1/3rd of the people took retirement at 62 years, then the percentage of retirees under age 65 should be at least 20%-25%, but it isn't.

Quote:
Originally Posted by freemkt View Post
I don't have retirement savings, so my only question is when to file for Social Security. But then I would be forever second-guessing my decision.
That's an intensely personal decision, for which there are no generalizations or cookie-cutter templates and if you think some web-site has the answer, you're sadly mistaken.

It depends entirely on your personal health, family history of longevity, employment situation, current financial situation and anticipated future financial situation.

If your family has a poor history of longevity, then you should retire early so you can enjoy life for 6-10 years before you die. If your family is like mine and has a habit of living 87 to 100+ years (even before it was fashionable to do so), then you'll want to consider delaying until full-retirement age.

If your personal health is poor, and especially if your job negatively impacts your physical or mental health, you should consider early retirement. You're not eligible for Medicare until age 65, but you most likely would qualify for Medicaid to cover costs. So long as you don't have $2,000 in cash in a bank or other assets like stocks and bonds, and your home is valued at $500,000 or less, and you only have one car, you'll qualify for Medicaid.

If your employment situation is tenuous, or your job negatively impacts your physical or mental health, you should consider retiring early, if for no other reason than to extend your life.

For your current financial situation, you might experience a reduction in income on Social Security, but that may be offset by Food Stamps and HUD Section 8 housing. If you know what your monthly Social Security benefit is or might be, your HUD rent is the greater of 30% of your monthly income or 30% of the gross rent, minus the utility allowance for gas and electric. You can contact landlords in your area that cater to the 60+ or disabled crowd. Because of the huge differences in Cost-of-Living in the US, your HUD eligibility is entirely dependent upon the county in which you live. If you don't qualify in your county, check a neighboring county. You can have Social Security benefits and other income totaling $56,000 a year and still qualify for HUD in many places in the US. On the other hand, if your income is greater than $14,000 annually, there's a lot of places where you won't qualify.

It's unlikely there will be drastic changes to your income for your future financial situation. From January 2000 through May 2018, CPI-W has increase an average of 2.4% per year, and Social Security COLA has increased 2.2% per year, so there's only a 0.2% difference. Since costs in some of the 83 metropolitan statistical areas analyzed have not increased or have not increased as high, you might actually benefit from COLA. If you were drawing $1,600/month in Social Security in 2000, then you'd now be receiving $2,267/month, due to COLA increases. The COLA for 2019 is likely to fall in the 3%-5% range based on CPI-W so far.

Once you've examined your situation, you'll have to make the decision best for you, which might not be the same decision someone else makes.
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Old 07-01-2018, 02:58 PM
 
64,629 posts, read 66,129,695 times
Reputation: 43046
lots of valuable info
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