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Old 07-02-2018, 04:12 AM
 
64,532 posts, read 66,075,955 times
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Quote:
Originally Posted by SFBayBoomer View Post
For others it can be either stop working (either by retiring with a pension or just stop working by choice), live below your means for awhile (if necessary), and then file at Full Retirement Age.
i am of the opinion that if you can't take your full retirement draw day 1 while delaying than it likely is not a good idea to delay ss .

so that means having enough in assets to front yourself the money until ss kicks in or you don't have enough in assets to safely delay and it should not be an option if you are going to stop working . .

i see little advantage to living on a reduced budget through what likely are the best years you may have from 62 to fra or until 70 . i know i sure would not do it nor would i recommend anyone does that without a real good reason .

delaying works best when you simply lay out what you are not getting and then once a bigger ss check kicks in you go from living mostly on your money to living on ss money and getting a reduction in what you need to provide from your own money .

i filed at 65 and my wife 62 but i have a bumch of little gigs going on in retirement so i made to much to file earlier .
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Old 07-02-2018, 04:29 AM
 
1,935 posts, read 3,299,896 times
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Quote:
Originally Posted by Tonyafd View Post
Find jobs that guarantee pensions and don't be tempted to leave any earlier than the five years that it takes to vest. .
Sorry, but there are very few pension benefit jobs remaining, and the jobs which do still offer pensions may not offer the benefit when you retire. I am not discounting the emotional serenity a pension provides in retirement, just noting this benefit has effectively expired.

Quote:
If a company offers you the cash value of your pension, don't take it. Having that annuity for life is important. You just might live until ninety six. If you don't live until ninety six, you won't be there to care.
Do you believe your employer will still exist in 30+ years, and their pension plan will still exist, and the plan will be sufficiently funded to provide reasonable income for life?

My best advice is for workers to craft their own pension equivalent while working, to provide themselves with a steady income stream after they retire. Cash-outs, 401(k) plans, personal savings and investments, etc. All these can be used to fund your own personal pension equivalence plan.
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Old 07-02-2018, 04:36 AM
 
11,304 posts, read 5,834,479 times
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Quote:
Originally Posted by mysticaltyger View Post
I'd add that there's not guaranteed happy ending with anything.
A happy ending is pretty much a sure thing at the massage parlor.
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Old 07-02-2018, 05:11 AM
 
11,304 posts, read 5,834,479 times
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Quote:
Originally Posted by mathjak107 View Post
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 .
Yep. My age 70 Social Security check would be $43,524 and thatís COLA protected. My girlfriend is around $40k. My house is paid for. Iíd be paying zero taxes on that income. I expect to have way better cash flow than that but hitting 70 with nothing but that Social Security check and my house wouldnít be awful. It spends like someone with a mortgage making $80k after you back out taxes and the mortgage payment.

There is a counter argument to the deferred savings thing. I noticed you were in Bermuda recently spending your retirement money. I went to Bermuda at age 31 with my girlfriend. We rode scooters to remote parts of the island and had sex on the beach. I took 2 years off at age 40. I burned up a bunch of frequent flyer miles and skied the world. I skied Squaw the 4th of July and played 18 holes of golf afterwards. I summer skied for a month in New Zealand. Epic powder days at Steamboat, Whistler, Deer Valley & Canyons. I also got to spend a big chunk of a summer with my father before he got dementia. Iíve skied an average of 60 days my whole life. Iíve sailed my boat in some amazing places. Iíve traveled all over the world. If I hadnít done any of that, Iíd easily have 5x my net worth. Whatís the point? Iíve lived a great life. Iím not going to be in poverty when I stop working.
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Old 07-02-2018, 06:32 AM
 
64,532 posts, read 66,075,955 times
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life should be balance . it is like fighting a war. you have all these different fronts going on and need to support them all . otherwise you win a battle and lose the war
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Old 07-02-2018, 06:49 AM
 
11,304 posts, read 5,834,479 times
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Quote:
Originally Posted by mathjak107 View Post
life should be balance . it is like fighting a war. you have all these different fronts going on and need to support them all . otherwise you win a battle and lose the war
If thatís the metaphor, everyone loses the war. Iím not immortal. Iím 60. Iíve been self-funding my lifestyle for 40 years. Itís statistically unlikely Iíll live another 40 years. Based on my parents, 25 to 30 years is more likely. My parents both were very limited by age 80 so I have 15 to 20 years to fund my lifestyle. Iím not likely to be skiing and sailing at age 80.
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Old 07-02-2018, 07:10 AM
 
Location: Northern Michigan
860 posts, read 405,812 times
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Quote:
Originally Posted by freemkt View Post
I'm listening to this Saturday morning financial radio show - retirement planning, investing, taxes - and they're discussing various options for maximizing retirement income.

Like when should joint filers start taking Social Security and/or start withdrawing from retirement plans? Should they convert to a Roth? Better to tap the 401(k) now in order to delay filing for SS, or to file now for SS and let the 401(k) grow until you reach 70 1/2, when RMDs are required? The scenarios are dizzying for couples, but even singles have uncertainty.

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 does not sound like fun. How do people actually make these decisions? Are they happy with their decisions, or do they come to regret them - is there a lot of second-guessing?.

Is there a path to a happy ending?
Some are happy with their decisions, and some regret them. There IS a lot of second-guessing- best case is to have that out of the way BEFORE filing. I'm STILL deciding on when it's best to file for my benefits, and I have been retired for seven months.

I'm glad you are looking at this; it is the first step to whatever 'happy ending' you can find. And for what it is worth, it is easier to be happy with your decision when it was a well informed decision, and was the best choice of your options available. Some of the replies you got here were good, and there is a lot of research involved in making the best decision- but you are on the path. My first question to you would be:

1) Do you have your SS account set up, and can access your history and SS statement?

This is vital research as to what your available options are. If you don't know where you sit in the 'filing date' decision matrix, it is a coin-toss as to what the best date to file is. Once you file, THAT DECISION SETS YOUR SS INCOME FOR THE REMAINDER OF YOUR LIFE. You might be able to recover from a bad decision, but then your options become a) get another job and work through retirement, or b) live in poverty. Neither are great options.

Next, bookmark https://www.ssa.gov/ as a fountain of good information. It can't tell you what you need to do, (sorry), because everybody that visits there has a different financial need, and no one answer fits all. Nevertheless, there are some great links that describe HOW THE SYSTEM WORKS. LEARN ITS RULES so there will be no surprises.

Next, answer these to yourself honestly:
2) Assuming you are not in failing health, would you be able to hang on to work longer and delay SS until the checks become bigger?

3) If the answer to 2) is NO, then if you retired before 65, would your SS check be able to meet your obligations as far as living expenses and medical coverage?

4) If the answer to that one is NO, do you know what resources are available to you at your income level? If yes, would you be able to use any of the aforementioned resources to help? These can turn a difficult situation into a manageable one.

Like the posters said, it is a complex decision, not to be made lightly.

Good Luck!!!
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Old 07-02-2018, 07:33 AM
 
64,532 posts, read 66,075,955 times
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Quote:
Originally Posted by GeoffD View Post
If that’s the metaphor, everyone loses the war. I’m not immortal. I’m 60. I’ve been self-funding my lifestyle for 40 years. It’s statistically unlikely I’ll live another 40 years. Based on my parents, 25 to 30 years is more likely. My parents both were very limited by age 80 so I have 15 to 20 years to fund my lifestyle. I’m not likely to be skiing and sailing at age 80.
no , many people live a balanced life . they have money to spend pre retirement and a nice sum saved for retirement . the problem others have is they pull from one front to sure up the other front and then they lose the war . you need money for both pre retirement living and also start accumulating a healthy sum for retirement life
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Old 07-02-2018, 08:47 AM
 
Location: Tennessee
20,955 posts, read 15,267,317 times
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On an individual level, most people, especially those at lower income levels, would probably be better off with a defined benefit pension. On a larger scale, we've seen what happens when pensions benefits are overpromised and underfunded.
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Old 07-02-2018, 11:12 AM
 
Location: USA
6,171 posts, read 4,948,777 times
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Quote:
Originally Posted by Serious Conversation View Post
On an individual level, most people, especially those at lower income levels, would probably be better off with a defined benefit pension. On a larger scale, we've seen what happens when pensions benefits are overpromised and underfunded.
With my grandparents for example, the pension was what they lived off of. SS was just pocket money for them to do whatever.
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