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Old 06-18-2014, 10:19 AM
 
8,080 posts, read 13,458,974 times
Reputation: 10322

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Quote:
Originally Posted by jmac84 View Post
The reason I plan on taking it earlier is to enjoy myself while I am a younger old guy. I will be doing more at 62 than I will at 82, so I will need more money at 62 than I will at 82.
I am thinking exactly like this ....

The things I want to do with that money are activities & adventures that I probably won't be able to do
at 80 .

By 80 I may be content to sit in a rocker and stare at the birds ...Rockers & bird food are cheap
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Old 06-18-2014, 10:24 AM
 
Location: NYC
2,905 posts, read 1,585,473 times
Reputation: 7931
It won't happen for at least one obvious non-ideological reason: the pols who would would vote on that have a cushy, privileged lifestyle that they want to keep & they know that seniors are the highest voting demographic by percentage. If they made moves to dump it it would cause a major social upheaval & we would clear the decks of the whole group considering this, red or blue.

There is plenty of money sloshing around in DC being used for less necessary things & being wasted, they touch SS & they know they are dead ducks.



Quote:
Originally Posted by Nor'Eastah View Post
What no one is mentioning here (though it may have popped up in other threads) is the fact that SS is underfunded and may not last until any of us reach 82. Unthinkable, you say? Thousands of boomers are retiring every day, way more people than the program was ever designed to handle when it came into existence in 1935.

It's no secret that the young generation now entering the workforce is not getting such good-paying jobs, and may not even be working full-time. It is their contributions that enable our payments. There is a point of diminishing returns with this. Our contributions went to support our retired parents and grandparents; anything remaining (a LOT of it) was expropriated by Congress.

My point here is not doom-and-gloom. It is simply that, the earlier you collect it, the more you will get if the funds eventually run out before you pass on. I took mine at age 63 and am setting it all aside for future expenses. I put in far more than my 40 quarters and suspect that most of you did, too. I only hope it lasts long enough for me to get most of that back, adjusted for inflation. I am not counting on that. Cheers!
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Old 06-18-2014, 11:10 AM
 
Location: OH>IL>CO>CT
5,231 posts, read 8,395,972 times
Reputation: 7185
Exclamation 85% is not the "Marginal Rate"

Quote:
Originally Posted by golfingduo View Post
I believe the break even point is just about 80.

As for being single and having IRA/401k income it might be better to convert it quicker and then take SS at a later date say age 70 for the stated reasons of reaching that 85% marginal rate.
85% is not the "Marginal Rate" applied to SS benefits. 85% is the maximum amount of benefits that become taxable at your specific marginal/bracket rate, after you complete the IRS Form 1040's Taxable SS benefits worksheet.

For instance, my own % last year was 8.82% of benefits taxed at 10% bracket rate, mainly due to pre-RMD IRA withdrawal.
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Old 06-18-2014, 11:17 AM
 
Location: Great State of Texas
86,093 posts, read 72,489,649 times
Reputation: 27565
I took early retirement from my job with a reduced pension.
The numbers worked for me so I did it.
I'll do the same decision making when I turn 62.
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Old 06-18-2014, 11:24 AM
 
Location: The Carolinas
2,003 posts, read 2,017,708 times
Reputation: 6083
All of this talk about "social security running out-of-money.". How come no one ever talks about welfare "running out of money"? That should "run out of money" WAY before social security does, right?

I mean, from my perspective, social security was/is a forced retirement account. Myself and my employer payed in for me. It is--to some extent--mine to take back out. If it's going to "run out", then stop taking it and let me do with it what I wish. . . I'll even sign a paper saying that if you find me in the gutter, then it's my own damned fault and to just pick me up when I'm expired.
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Old 06-18-2014, 11:48 AM
LLN
 
Location: Upstairs closet
4,981 posts, read 8,745,550 times
Reputation: 6451
Even without the considerations of the time value of money, there is stuff I can do next year, that I wont be able to do at 70, 80, 90...you get the drill. To me it is a no-brainer.

Take the money and run!
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Old 06-18-2014, 11:58 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,169,984 times
Reputation: 6691
Quote:
Originally Posted by adams_aj View Post
All of this talk about "social security running out-of-money.". How come no one ever talks about welfare "running out of money"? That should "run out of money" WAY before social security does, right?

I mean, from my perspective, social security was/is a forced retirement account. Myself and my employer payed in for me. It is--to some extent--mine to take back out. If it's going to "run out", then stop taking it and let me do with it what I wish. . . I'll even sign a paper saying that if you find me in the gutter, then it's my own damned fault and to just pick me up when I'm expired.
Not a dime of your money or your employers ever went to be there for you. It all went to support those already on SS. You have no account with money in it for you to take back.
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Old 06-18-2014, 12:16 PM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,577,349 times
Reputation: 5692
We had a client/friend years back who worked like a dog and when he hit 70 he said he was going to take his ss and retire...he died the following year. You never know.
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Old 06-18-2014, 12:27 PM
 
16,092 posts, read 36,571,224 times
Reputation: 6277
Quote:
Originally Posted by golfingduo View Post
I believe the break even point is just about 80.

As for being single and having IRA/401k income it might be better to convert it quicker and then take SS at a later date say age 70 for the stated reasons of reaching that 85% marginal rate.
Hmm, maybe I was thinking 83? What percentage of single men make 80 and how many live much longer than that? My father died at 75.

So you are saying don't take early SS, convert your IRA/401K to Roth (in increments) and then take it at 70?
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Old 06-18-2014, 01:11 PM
 
Location: The Carolinas
2,003 posts, read 2,017,708 times
Reputation: 6083
Quote:
Originally Posted by arwenmark View Post
Not a dime of your money or your employers ever went to be there for you. It all went to support those already on SS. You have no account with money in it for you to take back.

Really? You mean the $20 bills I marked with a mustache on the dead presidents aren't sitting in vault waiting for me to retrieve them? What a shock. Don't be so literal. Thanks!
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