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I belong to AAA and I bought my last car through them. Ordered what I wanted, saved $3K and they bought my used car and he showed me the car, test drove it, signed papers and walked out of office. Simple as that. I took advantage of interest free payments for a few years.
I belong to AAA and I bought my last car through them. Ordered what I wanted, saved $3K and they bought my used car and he showed me the car, test drove it, signed papers and walked out of office. Simple as that. I took advantage of interest free payments for a few years.
Very good indeed!
Buying my car was a good learning experience. In the end I got what I wanted despite the cheap sales tactics
If you are not planning to defer your SS benefit until age 70 you should do that first before buying an SPIA. (I.e., use savings to cover your benefit until 70, so in effect buying yourself a higher SS check).
Sorry to sidetrack the discussion a bit, but this is one of the few no-brainer decisions that exist in personal finance, assuming you are the higher earning spouse or you are single.
absolutely . this has to be one of the biggest financial blunders made over and over ... there is no commercial annuity that offers what delaying ss does for the price . for what you would give up in checks there is no annuity you can buy that
pays as much
is cola adjusted
passes to a spouse
and may have either no taxes on it it or only up to 85% is taxed
absolutely . this has to be one of the biggest financial blunders made over and over ... there is no commercial annuity that offers what delaying ss does for the price . for what you would give up in checks there is no annuity you can buy that
pays as much
is cola adjusted
passes to a spouse
and may have either no taxes on it it or only up to 85% is taxed
And this is from someone who recently posted a bunch of negative comments about delaying social security.
i posted both sides of delaying vs taking it early ... i posted the advantages of delaying and the disadvantages , go look again . i pointed out to you it was not an 8% return for all the reason s i listed but the advantages are surely in my posts . they both have disadvantages and advantages .
this is the disadvantage of delaying tht i pointed out to you when you said it was an 8% return , which it is clearly not .
Quote:
Originally Posted by mathjak107
it is not an 8% return ... it is zero return on investment for as much as 22 years , as your costs are the checks you are giving up , the assets being spent to live on or in the case of having a pension you live on , the fact you can't invest that ss money you are not collecting , also included in the price of admission is the fact you can't get spousal adders and your medicare premium is uncapped until you collect .
so while income increases 8% you are in effect BUYING that increase ,so it is zero return until you at least make up the costs of getting that extra dough which can take as long as 22 years to see your first penny of roi.
it takes until 90-95 to see a 5% - 6% real return delaying ss which is about on par with taking ss early and letting that money not being spent stay in a balanced fund .
there are no free lunches for us .
KITCES
just look below at one of my posts with the advantages of delaying .
Quote:
Originally Posted by mathjak107
Delaying ss may be helpful in getting an aca subsidy from 62 to 65 if you need health insurance. That can be worth thousands
Only up to 85% of ss is taxed compared to all of your retirement money that is taxable .... so there could be a tax advantage to delaying instead of more portfolio income ... also many states don’t tax ss ..... reducing rmds by spending down iras may help keep the rmds from triggering medicare surcharges based on income .....especially for a spouse who may be a widow filing single .
When you delay properly the income stays constant all the way through from day 1 ..you don't wait 8 years to first spend a dollar more . All that happens is the consistency changes .
Delaying can help let you use the zero capital gains brackets to generate tax free income , which if you were collecting may end up outside the zero percent bracket .
Delaying can buy time for more Roth conversions without getting in to higher brackets
Like I said when you see breaking even mentioned, it just means their retirement planning knowledge is limited generally.
If they had a handle on all the issues involved they would understand why breaking even is the least important or likely not even on the list of pros and cons
Last edited by mathjak107; 12-24-2019 at 08:03 AM..
I qualify for SS benefits and Medicare. However, I haven't contributed for the past 25 years.
Starting next 2020 I will be 62 and will start contributing again. I will be doing some freelance work which allows me to pay into SS.
I am hoping to do this up until maybe 68 or 69.
Starting 2020 my income will be from rental property only which if I understand can't be used towards SS unless it's taxable.
Is this correct?
If I have say $10,000 taxable income after write offs can I use this towards SS?
Not unless you are paying fica taxes and all the assorted payroll taxes on it.. only earned income counts and you have to pay all payroll taxes on the income like it is your job
O.k. I will be doing some translation work next year that will bring me around $7500.
The funds will be wired into my BOA account from an overseas bank. I will submit the invoice and receipt to my tax accountant.
This $7500 will goes towards my SS and I will pay the required taxes.
I will be filing a married joint return starting 2020. My wife isn't a US citizen but she has a green card and SS#
However, she has never worked in the US. (I have lived and worked outside the US for almost 30 years but recently returned to manage my rental property.)
She will qualify for half of the SS money I receive as well as Medicare.
Basically I hope to earn enough in SS to cover all Medicare costs for the both of us and perhaps a bit more.
Right now I'll get about $500 a month in SS if I start collecting at 70 and don't make any further contributions.
Last edited by john3232; 12-24-2019 at 06:54 PM..
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