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Old 01-02-2016, 02:28 PM
 
Location: Central Massachusetts
4,800 posts, read 4,865,465 times
Reputation: 6379

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Quote:
Originally Posted by Burkmere View Post
I'll be 62 in Sept and have been debating about whether to take Social Security early. With investment money plus my pension plus some land rental income I can pretty much live comfortably . However having another 20,000 also be nice. I am just trying to figure out if I work part time will I make more than the 15 grand that I can make in wage income withthout having some of the Social Security withheld. I guess in reality I could make about 30 grand because a dollar for every two I make would be withheld and I guess I would get it back starting full retirement age.

I guess my only hesitation is that maybe I would find a part-time job that would pay $30,000 that I would like and then it really wouldn't make any sense to take Social Security early. I definitely am not going to look for a full-time job with a full-time salary but possibly part-time gig if I like it.

Any feedback or ideas about my situation? LOL
So I will leap here. If you have a part time gig that can give you 15k annual that you like. It would make up for taking SS at 62. A job that pays that much part time will be about $14 per hour. Not a lot of that kind of part time gig. You could probably find 3/4 time at 10 and that would be the equivalent. Just my two cents. If you find a part time that can serve and allow you to postpone taking SS until 65 you would be better served in two things. One it keeps you active. Two it allows you to gain more in SS until you collect.
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Old 01-02-2016, 02:40 PM
 
2,297 posts, read 1,570,253 times
Reputation: 2747
Quote:
Originally Posted by golfingduo View Post
So I will leap here. If you have a part time gig that can give you 15k annual that you like. It would make up for taking SS at 62. A job that pays that much part time will be about $14 per hour. Not a lot of that kind of part time gig. You could probably find 3/4 time at 10 and that would be the equivalent. Just my two cents. If you find a part time that can serve and allow you to postpone taking SS until 65 you would be better served in two things. One it keeps you active. Two it allows you to gain more in SS until you collect.
Thanks for your post. If I'm going to limit my part-time to 15k or less...maybe even a little more...then I'll take ss early. As Mathjack has pointed out it takes 22 years or so to break even...what I'm contemplating is what if I get a part time job in which i can earn 30k a year...such as consulting, etc...then it would be a mistake to take early ss as they will keep it all....until I'm FRA.

Seems once you start taking it early, you'd better be pretty sure you aren't going to be making 30k in wages ever again...

It's a good "problem" to have I guess....
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Old 01-02-2016, 02:41 PM
 
Location: Austin
29,557 posts, read 16,536,989 times
Reputation: 8095
Quote:
Originally Posted by mathjak107 View Post
one other reason and that is they can give you back your own money at a draw rate greater than you can safely take it from yourself ..

they can give you your money back at a draw rate of 6% right now , you try drawing 6% of your own money and unless sequences are most favorable you can't sustain that rate safely .

because you need to keep so much more powder dry on your own because the same exact average return can make a 15 year difference in how long the money lasts just on the order of the gains and losses so you can't spend as much . .

you may die with a lot of money at the end left over if sequences are fine but you couldn't spend it for fear of poor sequencing and the unknown . .

that is why 96% of the time folks die with more then they started with using a 4% safe withdrawal rate . you just don't know how you will end because the worst cases would have run out of money while average scenarios playing out left you with more than you started . .

so if you protect against the worst scenrio's we had then you end up with to much unspent if things are just average .
That's exactly what I mean by shifting the investment risk to the insurance company.

If we knew when we are going to die, these decisions would be much easier.
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Old 01-02-2016, 04:21 PM
 
2,952 posts, read 1,649,546 times
Reputation: 5292
Quote:
Originally Posted by Robyn55 View Post
You aren't "making" 6%/year. You are getting some interest and some of your principal back - the total of which is 6%. It's kind of like making a mortgage payment (where part is interest and part is principal). BTW - I'm assuming you're talking about a SPIA. Although your annuity could well be a different "flavor".

Are you sure Forethought is part of Mutual of Omaha? It seems to have been an independent company that was acquired by another company - Global Atlantic:

Global Atlantic Completes Acquisition of Forethought Financial Group

Robyn


I'm not getting back any of my principle. This annuity is not being annuitized.
We aren't drawing a dime from it. We own a business & are living off income from that business.
What you are talking about is an immediate payout for an annuity. They are not the only kind available. Those do not give bonuses. That I know of.
We got a bonus too on our last we had for 10 years. Good deal for us cause we put only part of our net worth into these. The Bonus isn't paid out the way mathjak states. It is all put in at the opening. If you take money out early you lose a declining part of it every year you have it till year 10. When we annuitize.
ASSUMPTIONS on here are unbelievable. lol

90% of people who buy annuities, can't afford to hold on to the for the years signed up for. Poor planning, they put too much or all their money in them. Which is why they aren't a good deal for most. If you can afford them, they are a good deal. If you are getting deep into, well if this happens, and this doesn't, I live this long & she lives till she's X. Then you are gambling with you and spouses future. Never mind thinking that medicare will take care of you.
The gov't is fully behind the reverse mortgage issue because that keeps spouse in home & money freed up for LTC. Used to be 34% of homes were paid for in full, heard is even higher now,

Perceptions on here are pretty crazy about people one doesn't even know.

My apologizes, my whole life/ltc care policy is part of mutual of Omaha.

Last edited by foundapeanut; 01-02-2016 at 04:59 PM..
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Old 01-02-2016, 08:36 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,972,970 times
Reputation: 6723
Quote:
Originally Posted by foundapeanut View Post
I'm not getting back any of my principle. This annuity is not being annuitized.
We aren't drawing a dime from it. We own a business & are living off income from that business.
What you are talking about is an immediate payout for an annuity. They are not the only kind available. Those do not give bonuses. That I know of.
We got a bonus too on our last we had for 10 years. Good deal for us cause we put only part of our net worth into these. The Bonus isn't paid out the way mathjak states. It is all put in at the opening. If you take money out early you lose a declining part of it every year you have it till year 10. When we annuitize.
ASSUMPTIONS on here are unbelievable. lol

90% of people who buy annuities, can't afford to hold on to the for the years signed up for. Poor planning, they put too much or all their money in them. Which is why they aren't a good deal for most. If you can afford them, they are a good deal. If you are getting deep into, well if this happens, and this doesn't, I live this long & she lives till she's X. Then you are gambling with you and spouses future. Never mind thinking that medicare will take care of you.
The gov't is fully behind the reverse mortgage issue because that keeps spouse in home & money freed up for LTC. Used to be 34% of homes were paid for in full, heard is even higher now,

Perceptions on here are pretty crazy about people one doesn't even know.

My apologizes, my whole life/ltc care policy is part of mutual of Omaha.
Ok - so you were confused about who issued your annuity (and I think you said you passed a memory test ).

But could you please tell us exactly what kind of annuity you have? What flavor? And what the terms are. The fees as well.

If you can't explain it to us in pretty accurate terms - then you don't understand it yourself. Sometimes when I'm looking at something new - I'll write it up on a chatboard. And whether it's an investment idea or a recipe - if I can't write it up in a way that makes sense - then I toss it out the window.

Like Frasier used to say - I'm listening. Robyn
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Old 01-03-2016, 01:38 AM
 
72,051 posts, read 72,068,214 times
Reputation: 49605
i lost track but if this is the annuity with the 50k bonus i bet you will never make use of the 50k bonus without annuitizing since the above description i wrote is how they work . you only get a little percentage each year of that 50k added to your draw when you annuitize . it never becomes part of the death benefit either .
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Old 01-03-2016, 05:46 AM
 
72,051 posts, read 72,068,214 times
Reputation: 49605
i guess the easiest way to explain it is your account carry's two values . if sub accounts are involved like investments there can be even more balances and they all have different purposes .

in a typical annuity with bonus dollars or links to index's you actually have 2 account balances .

the protected income value of the account is the balance used for computing your income amount . this balance contains the bonus money they give you . it is not a real account balance in the sense you can take all that money out or leave it to heirs .

it only serves as an account balance off which you draw a small percentage each year .

then you have your actual growth account balance , that is your amount of money you can take with you or leave to heirs .

bonus bucks are not included in that growth account number .

so while the bonus sounds good you really only see a very slight up tick in income from it and certainly it is never your money in the sense you can take it out or give it to heirs . .

only your growth balance ever leaves not the protected income account balance .

you can see a pretty good analysis of these calculations here .

https://www.youtube.com/watch?v=DW7jA2CP5wI

Last edited by mathjak107; 01-03-2016 at 07:15 AM..
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Old 01-03-2016, 09:00 AM
 
39,330 posts, read 20,445,404 times
Reputation: 12812
Quote:
Originally Posted by mathjak107 View Post


not everything in life is about rolling the dice for more wealth . many times the game changes from trying to grow richer to not trying to grow poorer .
Exactly. People are trying to make sure they and their family will be taken care of but many people don't get it. They call it greed.
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Old 01-03-2016, 09:14 AM
 
72,051 posts, read 72,068,214 times
Reputation: 49605
many investors always have a vision in their head that they do not need guarantees because they believe the markets past is going to play out again . i am guilty of this too and have not made any provisions to insure our income with at least a partial guarantee at this point .

it isn't as much greed as it it is we are skeptical of insurance products and anything not held directly in our hands .

a few more years like this past one and that thinking may be quite harmful to our retirements if we are already pulling sizable withdrawals .

we are so far delaying ss so these withdrawals with little gains or even losses are not good if you are newly retired . they are not quite as problematic once you are retired with a decent up cycle under your belt .

but day 1 they are like a trader having a string of losing trades .
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Old 01-03-2016, 10:33 AM
 
2,952 posts, read 1,649,546 times
Reputation: 5292
Quote:
Originally Posted by Robyn55 View Post
Ok - so you were confused about who issued your annuity (and I think you said you passed a memory test ).

But could you please tell us exactly what kind of annuity you have? What flavor? And what the terms are. The fees as well.

If you can't explain it to us in pretty accurate terms - then you don't understand it yourself. Sometimes when I'm looking at something new - I'll write it up on a chatboard. And whether it's an investment idea or a recipe - if I can't write it up in a way that makes sense - then I toss it out the window.

Like Frasier used to say - I'm listening. Robyn
Right now in my life we are remodeling, a very ill husband, and running a business. All huge life challenges. I'll excuse myself for the slip up. But of course your type wouldn't.

Since you are such an internet know it all on annuities, you should be able to tell me what I have. Oh that's right, you did that with no success at all. There are dozens of different types of annuities. And yet you pick one and run with it as if its the truth.

I'm not even trying to explain to to anyone. Just giving out where one can get the info for those who want to investigate more. Those with an open mind, obviously not for you.

Have a great day!
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