Social security question.... (55, pensions, acquaintance, spouses)
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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?
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...
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.
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.
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
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?
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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