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Old 06-03-2014, 03:33 AM
 
Location: Vermont
1,018 posts, read 1,421,479 times
Reputation: 1994

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I think SS creates headaches for everyone with all the rules and scenarios. You can run the numbers every which way to Sunday and drive yourself crazy. If you retire early, you either draw SS or take out what you need from your savings. There is no perfect plan for everyone as the rules and markets change so much that planning for now is ok, but planning for later is next to impossible.
My plan is to position myself so that it won't matter one damn bit whether I take SS early or late. Retirement shouldn't be full of stressful decisions and 2nd guessing, but finally relaxing body and mind.
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Old 06-03-2014, 03:36 AM
 
71,651 posts, read 71,777,271 times
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in theory you are right but for many not maximizing planning creates much more stree and anxiety in retirement then not working saves.

for most of america it is crucial they maximize every penny in retirement they can muster as most retirements are already underfunded for a stree free life.

i know so many spouses who will be devastated finacially because their spouse took early ss and their survivor benefits will be a fraction of what a full benefit would have been.

they are finding it tough now to make ends meet and the death of a spouse,the loss of an ss check and slashed survivor benefits will be financially crippling.

others left over 100k of additional spousal benefits on the table because they didn't know how to play the game.

for most americans when to take ss and how to take it can be the biggest lifetime time financial decision they will ever make.

running out of money before you run out of time can be most UN-GOOD!

with couples 1/2 life at 86 today ,folks are living longer then ever. not alot older but more of us are making it to an older age.

while the 1/2 life is 86 for a couple the fact is we still die after that point at the rate of 50% of the group a year.

so 1/2 of the group makes it from 65 to 86 but die fairly rapidly after that point.

that still requires planning for quite a while so as not to outlive your funds.

Last edited by mathjak107; 06-03-2014 at 03:56 AM..
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Old 06-03-2014, 05:04 AM
 
Location: in the miseries
3,302 posts, read 3,581,162 times
Reputation: 3810
Quote:
Originally Posted by Mr5150 View Post
So if one takes SS at 62, in order to invest, they better have some other income going on. There is that penalty on SS if you have earnings and are not yet 66.

As for me, I will wait until 67. I think one's monthly income has more of an immediate effect on lifestyle than what one's total lifetime benefit received. Month to month is what counts in my book.
But ss will recalculate at FRA. If you don't receive a full benefit in any given month because of earnings.
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Old 06-03-2014, 05:07 AM
 
Location: in the miseries
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I for one would rather use other peoples money first (ss) than use my own.
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Old 06-03-2014, 08:13 AM
GLS
 
1,985 posts, read 4,848,058 times
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Quote:
Originally Posted by luvmyhoss View Post
I for one would rather use other peoples money first (ss) than use my own.

Ok, if you are going to use MY money first, at least put it to good use. I see you are a "Master musician". Play something relaxing for me so I can listen to it on the way to work.
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Old 06-03-2014, 08:51 AM
 
Location: NYC
2,916 posts, read 1,590,302 times
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Well, it's actually your insurance policy you have been paying into your entire (taxable) working life.
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Old 06-03-2014, 08:57 AM
 
Location: Central Massachusetts
4,800 posts, read 4,850,322 times
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You both make interesting points. Here are my take on them

Quote:
Originally Posted by evilnewbie View Post
The way I see is this...

2) If you didn't die and invested it, how much would 150k+ over 10 to 20 years of investment make you? So now, that 77 and 82 becomes irrelevant because you have all the SS money and a ton more by investing it...

and you are more than likely to die and profit then to die and not profit...
First off you are talking dollar cost averaging and not a big drop of 150k. So take that out of the equation. By that I mean you are talking about taking early at 62 and over the years the amount of money you are coming up with will be 150k. You do not have that in the beginning. So theory or no that is not something to shout out about because you will probably come up with about 250k in 10 years. The flaw then is after 70 and a half if not invested in Roth. But why would you do that if you are married and expect your spouse to outlive you.

Quote:
Originally Posted by mathjak107 View Post
in theory you are right ...

while the 1/2 life is 86 for a couple the fact is we still die after that point at the rate of 50% of the group a year.

so 1/2 of the group makes it from 65 to 86 but die fairly rapidly after that point.

that still requires planning for quite a while so as not to outlive your funds.
The whole point here is that none of us get out of here alive.

So what I will say here is everyone needs to evaluate whether or not to take SS early or at 70 or any point in between. Each person has their own circumstances and needs. Some of us might not want to leave anything to heirs or at least a reduced amount. All of their working lives they skrimped and saved for retirement then live on less in order to leave as much as they can to their off-spring. To that I say "NUTS". We saved that for us to use.

So here is a scenario and see if this fits. I have income that I have earned and saved. I use that when I retire. It will last past our FRA. In fact I believe at a 4% rate of withdrawal I should last 30 years. At FRA I file and suspend since we are already receiving income and do not anticipate using it. At nearly the same since spouse is just a few years younger she files, suspends and takes spousal. We either use it or save it. At age 70 we take our SS. If I out live her or she out lives me we are still covered. If I outlive her I will have more income then she would outliving me but we plan to live and enjoy life.
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Old 06-03-2014, 01:59 PM
 
Location: in the miseries
3,302 posts, read 3,581,162 times
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Quote:
Originally Posted by GLS View Post
Ok, if you are going to use MY money first, at least put it to good use. I see you are a "Master musician". Play something relaxing for me so I can listen to it on the way to work.
Choose a tune
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Old 06-03-2014, 03:15 PM
 
Location: Vermont
1,018 posts, read 1,421,479 times
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Quote:
Originally Posted by luvmyhoss View Post
Choose a tune
How about "Take this job and shove it!" ?
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Old 06-03-2014, 06:12 PM
 
Location: in the miseries
3,302 posts, read 3,581,162 times
Reputation: 3810
Quote:
Originally Posted by harpoonalt View Post
How about "Take this job and shove it!" ?
My favorite number.
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