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Old 09-09-2014, 07:26 PM
 
Location: Chesapeake Bay
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I'm thinking that most people are taking SS early simply because they have no choice. Some people posting here have good retirement incomes but it surely isn't true for many.
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Old 09-09-2014, 09:12 PM
 
Location: Los Angeles area
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Default Attiudes - some of them strange

Quote:
Originally Posted by Weichert View Post
I'm thinking that most people are taking SS early simply because they have no choice. Some people posting here have good retirement incomes but it surely isn't true for many.
Without a doubt some people do take their SS at 62 because they are desperate, that is, destitute, and they can think of no other way to have something to live on. But it's pretty hard to know if that represents "most people" out of those who take it early.

My own SS, which I took at 62 even though I didn't need it at all (and still don't) was such a pittance that trying to maximize it just didn't seem worth the effort. I think my original amount was about $103 per month.

In my case, an additional process was at work: When I was 62 I could not imagine living past 70, not because I had some incurable disease or because early death was common in my family, but because it was simply unacceptable for me to be 70, simply outrageously unthinkable. I know other people who lived past that point, including both my parents and quite a few aunts and uncles, but that was just not me. I was almost surprised to wake up on the day I turned 70 about five months ago, but part of me must have known it would happen because I had not made any extraordinary efforts to get rid of stuff in preparation. (About all I had done was prepaid my cremation with the Neptune Society). So now I am pushing 70 and a half and I've accepted that fact.
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Old 09-09-2014, 10:31 PM
 
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Like a previous poster, I too am single (and I have no kids.)

I’ve learned a lot on this board. So I am now thinking more about delaying Soc Sec as long as I can.

Retirement planning for me is also about how I want to live the FIRST part of my post working life -- let's call the them ACTIVE retirement years -- AND the latter retirement years -- which might be less active, as I age. Personally, I just think I need to keep those latter years even MORE in mind than the younger retirement years.

As for retirement I’m moving back to a paid off family home (that’s the plan anyway) so the plan is for no mortgage, and to buy my retirement car at retirement.

Other than about 10K I might put into the house....most of my retirement money will be for travel, travel, travel.

I DO want to retire as soon as possible ..... so my decision is between retiring at 62 and probably needing to take Soc Sec ...or working until 65 so I don’t have to tap my pension and Soc as early. But my FULL retirement age is 67....so we’ll see. I’ve got the numbers on the reduced pension and reduced Soc Sec.

It’s so far out that other than trying to position myself for what I know I’d LIKE to do....and learning more about how to do that better (like Soc. Sec. and taxes) there’s nothing for me to do...accept keep doing what I’m doing for now.

OMG I want to retire so bad. I’m burned out and bored....but like millions who are on the hamster wheel, it makes absolutely NO financial sense to get off. My only HOPE of retiring is to stay on the wheel...until retirement.

The latter years planning includes gifting a VERY little bit away to about a dozen family members. And as long as it’s not within five years of needing some kind of state care it won’t be an issue. But they may not get ANYthing -- because I've already given them a total of thousands. (I want to be done with giving any body anything. But that's another story)

And I SHOULD have at least two years of private pay or nursing home money, so IF I give anything away while healthy all should be fine.

I don’t have LTCI right now – I MIGHT get a ONE-year policy. But I’m not necessarily leaning that way right now.
With what I hope to have, I’ll buy into a continuing care community or stay in the house...whatever...

You can only plan so much for something 10-30 years ahead!
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Old 09-10-2014, 02:09 AM
 
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my opinion is take a linked benefit insurance plan with your emergency money that you would have kept in low paying investments anyway.

you get immediate coverage worth 2 to 2x the value of the policy for long term care, you can get your money back at anytime, the interest that compounds can be taken out tax free and is higher than you can get anywhere else.

your heirs get 2x the policy if you don't use it or borrow it out.

it is like moving your money from your left pocket to your right and having coverage.

gene pastula the inventor of the concept now copied by many was just brilliant when he thought this idea up . i saw him many times on financial shows .

you can get info here on them.

http://westlandinc.com/

Last edited by mathjak107; 09-10-2014 at 02:37 AM..
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Old 09-10-2014, 02:27 AM
 
71,735 posts, read 71,829,507 times
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Quote:
Originally Posted by Weichert View Post
I'm thinking that most people are taking SS early simply because they have no choice. Some people posting here have good retirement incomes but it surely isn't true for many.
most are not , the numbers were 45% of men took it at 62 but that number has been steadly dropping. women tend to file sooner but that is skewed since many like my wife take their own benefit and will get a spousal boost when i file.

marilyn filed at 62 and is collecting now, my plan is to file at 66-1/2 since 70 will really hurt our tax bracket with rmds. at that point marilyn's full benefit is subtracted from 1/2 my full and added to her own.

it usually pays for the lower wage earner to file early and most times that is the wife so women show they collect early ss benefits and while they do it really is different than when the higher wage earner files early.

Last edited by mathjak107; 09-10-2014 at 02:43 AM..
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Old 09-10-2014, 03:21 AM
 
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Mathjack, was that advice for me or in general....also is asset based LTC -- basically an annuity?
And what's the benefit or pro and con of that vs. the Hybrid Life Ins/LTC policy?

I ask because I have looked at the hybrid policies -- but also you've said that if you were single like myself, you wouldn't have a LTC policy, anyway.
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Old 09-10-2014, 03:27 AM
 
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if you are single it isn't as critical but:

suppose you needed a few years of in home care. wouldn't it be better to have that option rather than run out of your own money and risk medicaid packing you up and shipping you off to a home 100 miles away from friends and family?

or if you paid on your own leave you worrying about running out of money?

being single still requires thought about it..
the linked benefit plans are not annuities. they are life insurance plans that offer long term care benefits greater than even the face value of the policy as well as the offer of giving you back what you put in at any point after the first 2 years ,no interest credited.

personally i rather have regular ltc insurance. if i have to invest all that money so conservativly in the linked benefit plan so it is always there if needed it , it is less costly in the end to just get a regular policy, pay the premium ,invest aggressively with that money you would have sitting in the linked benefit plan and maybe spend a percent or so of those gains for a policy to protect my assets.

to me that is well worth the cost of the regular plan. but if you really do not want to spend the money or don't qualify for a regular ltc policy the linked benefit are the way to go,.

self insuring is the same, you do not know when you need the money so you can't risk having a stroke or accident in the middle of a 50% drop and needing the money.

yeah ,we recovered quickly this time but the folks back in the 70's waited 15 years for a recovery.

so you really have to keep that self insuring money liquid which to me is self defeating.

i was all for self insuring until we were featured in money magazine a few years ago and went head to head against their team of pro's.

they pointed that fact out to me and they were right , if i self insure i have to keep safe and liquid quite a large sum. just what i would give up in gains could pay a policy premuim and leave lots left over.

Last edited by mathjak107; 09-10-2014 at 04:00 AM..
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Old 09-10-2014, 08:25 AM
 
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One more question and then I'll get back to Soc. Sec....

I'm 54...at what age are you getting your policy now?

My cousin was going to get one for him and his wife at 65....and before the could get approve he had TWO health issues, so she got it -- 300.00 a month. And he didn't.

I'm not saying I'll wait 'til 65, but I'm not exactly looking to get it at 55 either. I just don't know.
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Old 09-10-2014, 09:17 AM
 
71,735 posts, read 71,829,507 times
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I am 62 and wife 64.

I was recently diagnosed as diabetic but have gotten it down to just being pre-diabetic with no medication.

I was worried I might be rejected but so far so good. they are sending someone Friday to draw blood from both of us. I assume our medical investigations were okay so far so this is the last step before approval.

the point is you want to do this before stuff happens . there is little savings by waiting. the younger you are the cheaper it is.
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Old 09-11-2014, 08:33 AM
 
Location: Hiding from Antifa?
6,424 posts, read 4,184,634 times
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Quote:
Originally Posted by mathjak107 View Post
one way of cancelling out some of the fact you took ss early is to work and earn over the limit where you have to pay it back. . you will get credit and recalculated at fra for any money you forfeit by working and earning to much.
So, would you get more than the, let's say 84% of fra for retiring two years early, for the rest of your life or would they only, make up what you were penalized? Then would it revert to the 84% for the rest of your life?

Curious since I just turned 64, and I cannot afford to retire now, but I could sure use some extra income right now. I don't want to delay an eventual retirement, though.

I would still get at least 50% of the 84% I assume. Trying to wipe out debts and turn our upside down home, right side up.
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