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Old 03-28-2015, 04:10 PM
 
238 posts, read 544,729 times
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Deciding on when to start taking social security is so difficult, it gives me a big, fat headache !!! Does anyone take their SS early (62 yo) instead of taking from their investment portfolio? I can't pass our SS to our heirs but I can pass on to heirs a lot of our portfolio. Plus when I look at the portfolio's return, I'm thinking I'd rather hold onto those monies. I know my thinking is flawed since no one seems to do it, but where/how is it flawed?
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Old 03-28-2015, 04:16 PM
 
30,129 posts, read 47,361,961 times
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It isn't flawed in sense of saying world is flat is flawed...
Every person's situation is specific to your (your spouse if you have one) situation.
It is like an abacus -- sliding scale of +/- choices that might not add up to same total if you do it vs someone else.
You can try to work out various math computations to show how the numbers change but part of it is just luck as to which comes out the best (IMO).
Make the best choices you can, try to have a fallback position if you can, and don't be second-guessing yourself every 2 mo...
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Old 03-28-2015, 04:21 PM
 
Location: Colorado Springs
4,846 posts, read 4,962,112 times
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SS at 62 means you'll need to fund health insurance to bridge to Medicare at 65. That can be very expensive.
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Old 03-28-2015, 04:30 PM
 
2,296 posts, read 1,563,056 times
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Quote:
Originally Posted by Vision67 View Post
SS at 62 means you'll need to fund health insurance to bridge to Medicare at 65. That can be very expensive.
Can be...but some of us have that fully or partially covered through a former employer, Obamacare, etc.
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Old 03-28-2015, 04:52 PM
 
Location: WA
5,396 posts, read 21,404,537 times
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And taxes make it even more complicated... if you are drawing from an IRA (not roth) you are taxed on every dollar while SS may be taxed at only 85%... but that will push up your income... and eventually you or someone will pay taxes on the IRA dollars but at what rate?

Not only do you need a decent calculator but a good crystal ball is required to really know the options.
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Old 03-28-2015, 04:57 PM
 
238 posts, read 544,729 times
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We're covered with medical/dental thru a pharma retiree plan; prolly one of the better ones before they started putting ceilings/limits, so not concerned in that area. We've been 'retired' for a few years; turning 62 yo this year and re-looking at finances and how we can 'better serve ourselves'. Really don't care whether we leave anything to heirs (aka not mandatory), but if we can structure things to our benefit and leave some leftovers, why not? Thanks

Maybe it's the tax thing as to why more ppl don't draw from ss earlier. We're currently drawing from a pension and the interest from our portfolio.
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Old 03-28-2015, 05:00 PM
 
Location: SoCal desert
8,093 posts, read 13,238,618 times
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Quote:
Originally Posted by margarets1 View Post
Deciding on when to start taking social security is so difficult, it gives me a big, fat headache !!! Does anyone take their SS early (62 yo) instead of taking from their investment portfolio? I can't pass our SS to our heirs but I can pass on to heirs a lot of our portfolio. Plus when I look at the portfolio's return, I'm thinking I'd rather hold onto those monies. I know my thinking is flawed since no one seems to do it, but where/how is it flawed?
This is what I've done, even though I didn't need to.
I have a pension and haven't touched the investments yet either.
SS will start in a few weeks (applied online Jan 1) - and will be going straight into the portfolio.
No reason to wait in my case. I don't really care if others think it's 'flawed'.
It's mine and I wanted it now
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Old 03-28-2015, 06:03 PM
 
5,397 posts, read 6,540,598 times
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I took my SS at 63.5. Have pension and IRA. happy with SS at 63.5 and should have done at 62. but still OK
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Old 03-28-2015, 07:34 PM
 
238 posts, read 544,729 times
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I want to begin SS draw now, so I can spend it!! :-) Is that wrong/unwise? We currently have no debt so I want to buy a piece of real estate. Hmmm, wise?
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Old 03-28-2015, 07:53 PM
 
Location: Upstate NY
35,529 posts, read 10,525,236 times
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Quote:
Originally Posted by mathjak107 View Post
6% from 62 to fra than 8% from fra to 70 . but it is alot less when you figure in the checks you are not receiving.
Yes, and lot of people forget that--which is what the SSA is counting on, and which is why they removed the "Break Even" calculator from their site (people should calculate it on their own).

When to begin collecting is a very personal decision with many variables, but no one's going to convince me that the SSA doesn't hope we all delay, delay, and delay....then die.
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