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Old 10-22-2018, 01:53 AM
 
70,912 posts, read 71,262,364 times
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Quote:
Originally Posted by Lovehound View Post
I once analyzed Social Security and pay-outs for various retirement ages. I picked the minimum 62 years old plus a few other retirement age choices. You understand that if you start at the earliest 62 you will be money ahead because retiring at a later age starts later. You've already collected a few years. Money ahead.

What I noticed from my charting is that all the graphs crossed at about age 78 years old. I've long suspected that the whole SSI thing is based on mortality statistics and they just figured most people die about that age. I just checked on Google "us life expectancy" and it says 78.69 years.

So when you reach 62 and each year after, ask yourself if you expect to live longer than 78. When the answer turns to 'no' retire right then!

I think it's best to retire at the standard 100% age depending on your birth year. However, if you stop working for whatever reason and don't expect to resume then take SS as soon as you are eligible. You'll have 16 years of money ahead if you live the standard 78 years. And if you live longer you'll just be happy you retired sooner.
there is no such thing as "the standard 78 years " that is based on from birth not retirement and that still assumes 1/2 go on to older ages .

the older we get the greater the odds of living longer so once infantile death and the sick and accident prone are weeded out ,by the 60's statistics are very different .

a 65 year old couple has almost a 50/50 chance of one seeing 90 and a 73% chance of one seeing 85 . that is a long way from dropping dead at 78 , especially for a couple..

.

Last edited by mathjak107; 10-22-2018 at 02:26 AM..
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Old 10-22-2018, 04:30 PM
 
Location: El Pueblo de Nuestra Señora la Reina de los Ángeles del Río Porciúncula
14,518 posts, read 15,217,736 times
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I was just saying that my observation that the lines crossed at about 78 years old when I was deciding what to do.

Your calculations seem to have neglected something. A lot of people put into FICA and never got anything out of it. They worked a few years and died young. They didn't work enough quarters to qualify. They didn't make enough money to get any benefits or died before they could use them, and maybe didn't have a relative (spouse) who the benefits could be transferred to.

The Social Security is based partly upon the fact that some people pay into the plan but they never receive any benefits.

Please factor that in.
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Old 10-22-2018, 04:40 PM
 
70,912 posts, read 71,262,364 times
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Everything we do in life plays the odds . If we had to plan around the fact some die young we would not bother to save for retirement. In fact I wouldn’t make any long term plans since young people die daily
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Old 10-23-2018, 03:19 PM
 
5,377 posts, read 2,247,643 times
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Years ago, I had a project where I needed to interview 100 residents in a public housing community.

You could divide the residents right down the middle between those for whom public housing was designed, namely the ones who had fallen on hard times and were trying to work their way out, and those who were the permanent residents.

The respondents were guaranteed strict confidentiality, but my blood began to boil when I listened to those permanent residents began loosening up and describing how they made their cash. They could play the system like a piano, cashing their benefits checks. One guy did a lot of handy work and yardwork for cash only. He kept it in a coffee can under his sink. I talked to a lot of people like that.


A different instance was a girl lived in my apartment building. She was an attractive woman who was going to college, earning her degree in finance. Honest to God, she looked, walked, dressed, and talked as if she could have stepped straight out of a Junior League meeting. When she learned I worked out of the apartment, she one day came by and asked if I could walk with her to the bank three blocks away. I did this once a week over the course of several months.

She finally told me that she was a dancer at a strip club at nights, earning her college money because he parents couldn't afford to send her. They lived in another state and thought she was waiting tables. She said her act was basically one of looking like a well-heeled preppy who just liked to shed her clothes on stage and she made bank, a lot more than the usual performers. What's more, she had begun having guest engagements in different cities such as Tampa or Dallas. And, yes, I know she was truly in college because I proofread a couple of her papers.

Instead of using an account, she took her cash and stuck it in a safe deposit box rather than her checking account. Every once in a while, she'd put a few hundred in her bank account, mainly to pay her rent and utilities. When I asked her how much was in there, she simply said, "Six figures."

She invited me to watch her act. I thought that would be kind of weird at the time. And I didn't date her either, being involved with someone at the time. I moved out a couple of months before she was graduating. I have no idea what happened to her.
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Old 03-11-2019, 01:14 PM
 
370 posts, read 127,371 times
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Heres what i thought about and curious about as well. I know most ppl have money in their bank accounts or investments and whatnot. Thus few ppl have a lot of cash in their house or their safe deposit box at the bank.


Do most ppl here keep much cash in their house or apartment? If so, im guessing its probably not more than 1k or 2k max? Are there lot of ppl that keep a lot of money in safe deposit boxes? I heard ppl do that because they dont want money in the bank right? Such as those ppl who get gov benefits or things like that? I heard this a while back but do ppl still do this now? The risk of putting money in deposit box is if something were to happen to it. Like i heard stories of ppl drilling holes through the bank safe and getting to bank deposit boxes and taking everything out. Does anyone know how common is that?


Also im curious about something else. Say a person has all their money in the bank and investments and let say now they owe a ton of money suddenly to the IRS or some court case etc where any money in their bank account would be taken. Or if they cant pay their mortgage etc. And i heard about the garnishing of wages. If that is the case, wouldn't it make sense to have a good amount of cash stacked somewhere for personal use in case something like this happens? Example someone suddenly owes a ton of money for something and any money they make, its taken out of their bank account. Or they don't work or have no job and do not have money anymore. But if they have cash under their mattress so to speak, well they can use that to buy things etc right? Would this make sense? I mean imagine someone get sued or garnished wages, and then all the money is in bank account. But if you have say 5k or 10k or 25k or 50k hidden somewhere, well at least you have money to buy the essentials right? Because i hear about ppl oweing a lot of money or something happens and they are broke... and when i say broke, i mean like not enough to buy food etc. Thoughts on this?
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Old 03-12-2019, 05:23 AM
 
5,938 posts, read 6,830,507 times
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Quote:
Originally Posted by ericjustin2 View Post
Like i heard stories of ppl drilling holes through the bank safe and getting to bank deposit boxes and taking everything out. Does anyone know how common is that?
That probably happens about as often as an FDIC insured bank fails. At least with the bank failure you have some recourse to get your money back, though.

Quote:
But if you have say 5k or 10k or 25k or 50k hidden somewhere, well at least you have money to buy the essentials right? Because i hear about ppl oweing a lot of money or something happens and they are broke... and when i say broke, i mean like not enough to buy food etc. Thoughts on this?
Most people use a credit card as their "emergency fund", should something happen to their main bank account. And it doesn't have to be something relatively unusual like wage garnishment. It could be something as simple as your debit card gets shut down due to a fraudulent charge and you don't have easy access to your money for a few days.

Keeping cash at home is probably common, too. I doubt that it's more than a thousand or so in most cases, though.
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Old 03-12-2019, 05:30 AM
 
70,912 posts, read 71,262,364 times
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Our accounts at fidelity were shut down for 10 days .. we use that core as our main account for all bill paying and atm money ...their own hacker team found my wife’s info for sale on the dark web ..

So luckily we have a local account with chase we could access while all money was moved to new accounts ,new checks ,new cards were set up..

On the other hand we lost atm access here in nyc and even some bank access both after 9-11 and again after sandy .

So we plan accordingly
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Old 03-12-2019, 02:52 PM
 
Location: Texas
9,172 posts, read 3,547,368 times
Reputation: 18990
I know someone who doesn't have a bank account. He uses money orders to pay for things that he can't use cash for. He's not a poor person, he's just paranoid about having a bank account. How he handles his finances is his own business, of course.
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Old 03-16-2019, 05:57 PM
 
4,693 posts, read 1,169,041 times
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My grandfather didn't love banks. But when he had several hundred thousand dollars from his business and banks were paying 15% interest on CD's, he decided they were ok. When he died, we were told he buried money in the back yard but we never found it.
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Old 03-16-2019, 09:46 PM
 
Location: Forest Service Cabin 90% of the yr
83 posts, read 22,463 times
Reputation: 96
To assume folks are working under the table is disingenuous.

I wish we could go 100% cash free but it isn't possible. Privacy is so important.

We have a debit card from a bank account attached to an EBAY seller acct

We have another Money Market Checking Acct

And one regular checking acct

I look forward to the day we cash checks our paychecks at a cashing facility but it won't happen anytime
soon

We could easily have another great depression where banks just fold up. The world, and it's morals, only get worse each passing day
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