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Old 04-23-2015, 03:49 AM
 
71,626 posts, read 71,751,865 times
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there are excellent sites with real pro's on the subject that can do total work ups like social security solutions to name just one.

they are pretty cheap in the scheme of things considering how much you can leave on the table with one slip up.
i think they get anywhere from 49.00 bucks to 250.00 for a complete analysis looking at all aspects , assets , allocations and projected averages on it , interaction with rmd's and suggested options you have..
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Old 04-23-2015, 05:42 AM
 
Location: RVA
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Not sure if you meant working longer or shorter. Longer, you never lose benefits, even if working and collecting. If youwork in excess of the allowed amount, the amounts are reduced, but then added in later in a sort of reduced additional credit. How that is figured has never been discussed, but its also an option. Mathjak is right; if you ar uncomfortable using or unsure how correct you might be as to using what option SS option, and have complex enough assets, it is easily worth the $250 to make sure you arent making even a $500 a year mistake! The earlier you retire and he more you own, the more important it is. Even as verification that your approach was best, is well worth it. I have 5 years before I have to make the decisions. I'm just get my experience and lumps in now, so I can be more prepared and ready for the reality. Whenever I have bad weeks at work (like no days off for 3 weeks), leaving at 62 seems awful nice. (I get the missed days later as comp time, but its not really the same).
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Old 04-23-2015, 10:31 AM
 
Location: Mount Airy, Maryland
10,463 posts, read 5,930,681 times
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Quote:
Originally Posted by Perryinva View Post
Not sure if you meant working longer or shorter. Longer, you never lose benefits, even if working and collecting. If youwork in excess of the allowed amount, the amounts are reduced, but then added in later in a sort of reduced additional credit. How that is figured has never been discussed, but its also an option. Mathjak is right; if you ar uncomfortable using or unsure how correct you might be as to using what option SS option, and have complex enough assets, it is easily worth the $250 to make sure you arent making even a $500 a year mistake! The earlier you retire and he more you own, the more important it is. Even as verification that your approach was best, is well worth it. I have 5 years before I have to make the decisions. I'm just get my experience and lumps in now, so I can be more prepared and ready for the reality. Whenever I have bad weeks at work (like no days off for 3 weeks), leaving at 62 seems awful nice. (I get the missed days later as comp time, but its not really the same).

Regarding the first part of your post are you saying if I file at 64/6 and still work my benefits will be reduced but I will be credited and reimbursed for that reduction when I do finally stop working? That would be great. Will my working also effect my wife's benefit as she will be filing as 1/2 of my FRA benefit?
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Old 04-23-2015, 11:43 AM
 
Location: RVA
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RE : the first part, yes. If you collect and work, your SS benefits will reduce, but you get them back as a modified DRC (delayed retirement credit) when you stop working. It does not affect your wifes benefit at all, regardless. If she is geting a benefit adder becuaee of some reduce spousal credit, it will also not increase, as it would if you did a delayed filing.
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Old 04-23-2015, 05:29 PM
 
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But remember every dollar you give back while working can take 16 years or more to get back fully.

There are no free lunches ,everything has a negative side.
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Old 04-23-2015, 06:33 PM
 
Location: Cape Elizabeth
425 posts, read 387,495 times
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Quote:
Originally Posted by Perryinva View Post
RE : the first part, yes. If you collect and work, your SS benefits will reduce, but you get them back as a modified DRC (delayed retirement credit) when you stop working. It does not affect your wifes benefit at all, regardless. If she is geting a benefit adder becuaee of some reduce spousal credit, it will also not increase, as it would if you did a delayed filing.
No, you do not get it back as a modified DRC, you get a recalculation of your reduction factor, after you reach FRA, and they only permanently reduce your benefits by the actual number of months you received full checks before FRA. It is called ARF.

It does affect your spouse's checks, or your children, or any dependents who are receiving based on your own work record. But in a way that is good, because between the amount of both their checks, the amount they are over the limit gets eaten up faster.

So, if you work, earn $30720 and in 2015, the limit is $15720, that leaves $15000, which then is divided in half. So SSA cares about $7500.00.

If a worker's and spouses benefits total $2500 (he is getting 1800 and she is getting 700.00 monthly), it would take 3 checks to hold back the excess earnings. Then after FRA, those 3 reduction months (and any others in subsequent yrs. before FRA) get added back to the workers Primary Ins Amt.
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Old 04-24-2015, 02:20 AM
 
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i think the best compromise for those on the fence about delaying vs spending down assets is to do a wait and see kind of thing.

the biggest damage to a retirement time frame is the first year or two . a downturn while spending down has the same effect as a trader having a string of losing trades early on.

it can eat up excessive amounts of money that will be gone forever no matter how much markets bounce back.

so why not play it be ear. i am retiring in july . if we take a steep drop i will file for checks in january and leave assets alone.

but if we are up or only down a bit i would hold off filing since excessive spending down out of the gate is not a problem. .

i think that gives a good balance to the age old question.
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Old 04-24-2015, 04:04 AM
 
Location: Mount Airy, Maryland
10,463 posts, read 5,930,681 times
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Quote:
Originally Posted by ilovemycat View Post
No, you do not get it back as a modified DRC, you get a recalculation of your reduction factor, after you reach FRA, and they only permanently reduce your benefits by the actual number of months you received full checks before FRA. It is called ARF.

It does affect your spouse's checks, or your children, or any dependents who are receiving based on your own work record. But in a way that is good, because between the amount of both their checks, the amount they are over the limit gets eaten up faster.

So, if you work, earn $30720 and in 2015, the limit is $15720, that leaves $15000, which then is divided in half. So SSA cares about $7500.00.

If a worker's and spouses benefits total $2500 (he is getting 1800 and she is getting 700.00 monthly), it would take 3 checks to hold back the excess earnings. Then after FRA, those 3 reduction months (and any others in subsequent yrs. before FRA) get added back to the workers Primary Ins Amt.
Not sure I fully understand this. To maximize my wife's benefit I plan on filing at 64 1/2 but plan to work for several more years. Clearly I will be earning more than $15,700, no doubt more than your $30,720 example. What would the estimate SS check reduction be at $30,720 and say $50,000? And once I stop you are saying that reduction will somehow be calculated back into my monthly payments resulting in an increase over my origunal benefit amount should I stop working at 64? If so it will be impossible to calculate if I got it all back since life expectancy is unknown.
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Old 04-24-2015, 04:42 AM
 
71,626 posts, read 71,751,865 times
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there are different rules for earnings in the year before you are fra. you are allowed to earn more in that year than other years prior . once you reach fra there is no limit on earnings

but i would think 64-1/2 is to far away yet for that. every dollar you giver back will take 16-17 years to recover once adjusted at fra. that can be quite an old age since you don't start getting it back until fra and it is paid a little bit each year .

Last edited by mathjak107; 04-24-2015 at 04:52 AM..
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Old 04-24-2015, 06:53 AM
 
Location: Mount Airy, Maryland
10,463 posts, read 5,930,681 times
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I see that but I can't see waiting until FRA to start drawing, again that would force my wife to wait until she is 68 1/2 and that's just not the plan. At this point I'm more concerned with reducing her SS benefit should I continue to work. Will her check be effected or just mine?
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