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Old 03-30-2015, 09:45 PM
 
Location: Cape Elizabeth
425 posts, read 387,956 times
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You are welcome, but you really didn't have to thank me. I always liked helping people at my job, and now that I have retired, I am glad to keep doing my part. I know all too well how complicated SSA is and I have been very upset for a number of years now how the baby boomers have been left to fend for themselves on the internet.
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Old 03-30-2015, 11:44 PM
 
30,140 posts, read 47,370,265 times
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Very effective illustration of why waiting isn't always the better option
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Old 03-31-2015, 01:45 AM
 
71,706 posts, read 71,829,507 times
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Quote:
Originally Posted by ilovemycat View Post
You may be thinking what is the big deal if I wait until Wednesday, April, instead of March. Well, if my friend, who I worked the comps for- her reduced retirement with March was $1937.00. If she waits until April, it will be 5/9 of 1% more, so approximately a gain of $10.00. For the $10.00 gain, she gave up $1937.00. Divide the gain into the loss, and it takes a person 193 months or 16 years to make up the $1937.00.
here is a chart showing break even while counting the checks you would not get by waiting.

it does not reflect the fact if you delay and retire you will be spending down your portfolio while waiting losing the gains on that money . that can make taking it early a better deal for some.

of course the flip side is if you wait the almost 2x bigger checks at 70 reduce spending from your own money big time.
if that money remains invested than waiting almost always leaves a bigger pile left for heirs assuming average life expectancy especially for a couple who is expected to have at least one of them live until 87 and have a good shot at 90 if they are at least 65..

we have been adding another year of life every 4 years since 2000 . that is something to consider when deciding.


Last edited by mathjak107; 03-31-2015 at 02:37 AM..
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Old 04-01-2015, 07:25 PM
 
2,829 posts, read 1,008,958 times
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Interesting. While I see why many would wait to claim, everyone has to look at their own situation.being single with no kids I have debated that same question wait until 67 or 70 and use my investments or get at 62 and llet my investment ride.
It always goes back to, none of us know how long we will live so while the avg age might be going up, you never know. My grandfather,father and uncle all passed away 79-80 range.
At the end you should feel comfortable with your decision and live your life and not have to constantly worry about wether you made right decision.
Life is short enjoy it
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Old 04-01-2015, 09:43 PM
 
1,168 posts, read 2,404,071 times
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Quote:
Originally Posted by mathjak107 View Post
Think how well a 33/33/33% mix of roths, taxable and traditionals could work while delaying ss.

you could pull as much as 320k over 8 years at barely over a 4% tax rate as well as sell equities at zero tax in a taxable account.

by the time rmds kicked in you would have already gotten rid of 320k worth with 1/2 going through tax free..

the roths would spin off no taxable income , perhaps ss wouldn't get taxed and you still may be in the zero capital gains bracket.

that would be ideal but it takes early planning and knowledge which is generally wasted on the young . few have the knowledge or understanding of all the tax aspects yet of retirement.

all they know is buy index funds and I want my tax deduction now..

What do you mean by "gotten rid of"? do you mean converting 401K funds to Roth funds? or do you mean getting rid of it by living off it? I'm not sure if it was in this thread- but you mentioned while delaying SS it was a good time to convert 401K to Roth- that's what I'm trying to understand- thanks
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Old 04-02-2015, 02:48 AM
 
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Originally Posted by exit82 View Post
What do you mean by "gotten rid of"? do you mean converting 401K funds to Roth funds? or do you mean getting rid of it by living off it? I'm not sure if it was in this thread- but you mentioned while delaying SS it was a good time to convert 401K to Roth- that's what I'm trying to understand- thanks


getting rid of it by spending it down while waiting to take ss. if you are not taking ss and have no other source of income than you would be drawing off the ira money at low to no taxes to live,.

Last edited by mathjak107; 04-02-2015 at 03:55 AM..
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Old 04-02-2015, 02:52 AM
 
71,706 posts, read 71,829,507 times
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Quote:
Originally Posted by exit82 View Post
What do you mean by "gotten rid of"? do you mean converting 401K funds to Roth funds? or do you mean getting rid of it by living off it? I'm not sure if it was in this thread- but you mentioned while delaying SS it was a good time to convert 401K to Roth- that's what I'm trying to understand- thanks

if you are going to be taxed at 25% or higher when rmd's kick in than any conversions you can fill up the 15% bracket with early on and fly the empty seats would be worth it.
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Old 04-02-2015, 07:07 AM
 
1,168 posts, read 2,404,071 times
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got it- thank you
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Old 04-02-2015, 09:43 AM
 
708 posts, read 503,299 times
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I am 62 now and will retire when I am 65. My wife is 61 and retired. We plan collecting her SS this year when she turns 62. She worked 33 years. Can we collect right and have two SS checks? Her's this year and mine when I retire at 65? If someone has the answer to help that would be great. Thanks
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Old 04-02-2015, 09:45 AM
 
30,140 posts, read 47,370,265 times
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Our finance advisor/CPA thinks my husband should wait until 70
But he thinks he might not live past mid 80s--why I don't know--- he is very healthy even though has typeII diabetes and high BP they are both under control and he is not overweight.

Using that chart, it seems the higher the monthly amount you are eligible for at FRA and defer, then the longer it would take you to recover the missing funds--even if the amount at 70 would also be proportionally higher....is that correct??
Or south that vary by monthly amounts themselves??
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