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Just read a brief article that suggested collecting social security payments at 62 and then investing that money might be an advantage for many people who already have adequate savings. I’m guessing this has been hashed out here in this forum but couldn’t find it. I realize it depends on the markets and that may be a risky proposition, but at what rate would you need to make this a good idea?
I lean toward postponing to age 70. Seems to be the safe conservate way. In my thinking I assume I or my spouce will live to 100. Thus I am not dying early and if I do die early I will not know I lost the bet.
Just read a brief article that suggested collecting social security payments at 62 and then investing that money might be an advantage for many people who already have adequate savings. I’m guessing this has been hashed out here in this forum but couldn’t find it. I realize it depends on the markets and that may be a risky proposition, but at what rate would you need to make this a good idea?
Delaying ss and spending down invested assets vs taking it early and leaving the assets invested are even Steven at about 22 years ....if you live longer delayed ss can win ......if markets do better then just a 6% real return and inflation stays tame then investing wins with the early benefits.
If you are delaying ,Delaying works well for couples where there is a 47% chance one in a couple will still be alive at 90.
So take your choice , delay and bet on longevity more , or take it early and bet on markets , rates and inflation more
You lose about 6% per year for each year you take soc sec early. So you'd need to make significantly more than 6% return every year to offset the reduction, and reinvest that.
You lose about 6% per year for each year you take soc sec early. So you'd need to make significantly more than 6% return every year to offset the reduction, and reinvest that.
this is wrong ... you don't lose 6% ... the 6% increase is at the cost of spending down invested assets , checks you are not getting , spousal not gotten and no cap on medicare increases . so it is not like a 6% gain would be .
this is wrong ... you don't lose 6% ... the 6% increase is at the cost of spending down invested assets , checks you are not getting , spousal not gotten and no cap on medicare increases . so it is not like a 6% gain would be .
Your benefit rate is lower. The payments are designed to produce the same lifetime total whenever you start taking them.
Delaying ss and spending down invested assets vs taking it early and leaving the assets invested are even Steven at about 22 years ....if you live longer delayed ss can win ......if markets do better then just a 6% real return and inflation stays tame then investing wins with the early benefits.
If you are delaying ,Delaying works well for couples where there is a 47% chance one in a couple will still be alive at 90.
So take your choice , delay and bet on longevity more , or take it early and bet on markets , rates and inflation more
Your benefit rate is lower. The payments are designed to produce the same lifetime total whenever you start taking them.
Not correct again .
Actuarially they are not equally weighted and have not been for years ... because today there is almost a 50% chance of one in a couple seeing 90 it has a big tilt Inherently towards delaying . So it is not neutral ...
But because of other aspects like spending down invested assets , spousal benefits that can’t be had , uncapped Medicare premiums while delaying that edge is usually no longer there and it is a toss up as to which one will leave you better off .
Unless one of you makes it to 90 , odds are taking it early and investing in a balanced portfolio will leave a bigger balance capable of a higher income assuming average real returns .
So you either need to bet on markets ,rates and inflation or longevity more for your income ....neither is a slam dunk but not because ss itself is neutral
Last edited by mathjak107; 12-14-2019 at 04:32 PM..
So did I ..until I was in battlefield conditions spending down invested assets or money that could have been invested while I delayed in one of the greatest bull markets in history.....
Plus my wife did not get a 4500 a year spousal adder until I filed .
When mr ss check kept knocking on the door saying use me it is hard to resist so any plan I had to delay was gone by 65
Last edited by mathjak107; 12-14-2019 at 04:30 PM..
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