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Old 01-20-2016, 09:10 PM
 
1,734 posts, read 1,949,340 times
Reputation: 3901

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Yup! Most of us guessed it! Live off savings, put off claiming SS until the last white-knuckled moment:


The best retirement investment for any market condition - MarketWatch


Written by Harry Hebeler, a real old world gentleman. I can see his point: in real dollars, the difference between my FRA SS income and my aged 70 SS income is within spitting distance of $1000/mo as calculated today, assuming some inflation adders in there.

I am prolly a real sucker for saying this: but I have a nice warm fuzzy about MarketWatch for publishing these kinds of "there, there" soothing articles. When it comes to market timing, I have sh*t for brains.

Therefore I am numbly continuing to max my Roth. I DID increase my Treasuries allocation, and taxable savings now all go to cold hard cash. Not fancy precious metals or whatever. Green Benjamins.

Every so often I look at my infrastructure funds (I are a ingineer after all, and I LIKE big arn [*that's "iron" with a Texas accent*]) and pat them on the head. They were 10% of my portfolio before the steady erosion. They'll come back with a vengeance once the Whitestone Bridge collapses (or some such). Don't get me wrong - I don't hope for the Whitestone Bridge to collapse. Maybe just a little section of the Mid-Town Tunnel. A big enough section to precipitate Congressional hearings and rouse the Plunge Protection Team to put their collective shoulders behind infrastructure (*blush*).

I'm grateful that I've got income producing hard assets outside of the tax-sheltered ones to keep the cat food on the table while I'm whiling away the years till 70. An authentic .75 litre Snow Peak titanium camping kettle - looks like a huge coffee cup. It provides INSTANT audible feedback for dimes and quarters tossed in by drivers while they are stuck in traffic on the Independence Avenue off-ramp. I'm tellin' ya, the ROI on that asset is astronomical. I've done an analysis: the noisier the coin catcher, the more of a competitive spirit you can gen up amongst drivers similarly stuck.

After controlled experimentation, running permutations and combinations, I have found that Fancy Feast goes really well with Thunderbird. Knock down a pint of Thunderbird as an aperitif, and truth to tell, every dinner tastes the same. One of Thunderbird's many unsung benefits.

(This is all, of course, an extended flight of fancy - I am poking fun myself in the predicament of waiting around till 70.5, and analyzing out different ways to make productive use of the time). (The jrkliny model is still the top contender - the Grand National Parks RV Tour). No way Jose am I hanging around in an ingineering tech company.

I do hope somebody chimes in about this article. I really find its tone charming and mannerly - both characteristics in short supply these days.
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Old 01-21-2016, 04:04 AM
 
71,563 posts, read 71,730,589 times
Reputation: 49156
lots of other factors are involved .

don't forget while delaying it isn't all gravy .

you will be spending down invested assets which are gone forever , you are not getting the checks you could , you have zero protection from medicare increases if they are more then colas, there are no spousal benefits available until you file so they can collect .

in our case until i file my wife does not get a 4200.00 a year adder to her own .

most important cola adjustments have nothing to do with your own personal cost of living . your own living expense increases may very well exceed the ss cola adjustments by a mile .

that all can push break even out 22-24 years so it is a longevity gamble instead of a market gamble .


having said that , our plan as of now is to delay ss .

we went to see our team at fidelity who have a new social security optimizer tool for in house use .

our plan now is my wife will suspend her early benefit she started at 62 and will suspend it in august when she is 66.

she will let hers grow until 70 .

i am 2 years younger so at my age of 67-10 months ,and her age 70 i will file restricted application for 1/2 hers .

at 70 i will file and when i do she gets 4200.00 added to her benefit as a spousal adder .

of course that is the plan today but any number of things can alter that including health changes .
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Old 01-21-2016, 07:01 AM
 
Location: NC Piedmont
3,911 posts, read 2,878,614 times
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A lot of these articles are unclear about whether they mean delay collecting or delay retiring. I know it is often because that varies depending on what you have besides SS, but it seems like they should clarify that.
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Old 01-21-2016, 07:27 AM
 
71,563 posts, read 71,730,589 times
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delaying retirement from a financial perspective is always the winner . mentally , most of the time the loser .
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Old 01-21-2016, 07:40 AM
 
Location: Central Massachusetts
4,800 posts, read 4,847,776 times
Reputation: 6379
I completely agree with you RtB. They should clarify that if they mean delay collecting or delay retiring.

Retirement is very different for everyone. One person's idea of retirement is certainly different than my own. It just can confuse the whole issue for some. Much like those lists people come up with that say "Here is the best place int eh world to live!" Meaningless dribble I say. Beauty is in the eye of the beholder for heaven's sake!
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Old 01-21-2016, 08:00 AM
 
Location: Los Angeles area
14,018 posts, read 17,737,509 times
Reputation: 32304
Quote:
Originally Posted by jane_sm1th73 View Post
..........................................

I really find its tone charming and mannerly - both characteristics in short supply these days.
Indeed.
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Old 01-21-2016, 11:42 AM
 
Location: SoCal
13,226 posts, read 6,331,374 times
Reputation: 9844
I don't know but I ran one of the calculators from the Boston guy, I think it was maximize SS, I was told to take it earlier than FRA, one year earlier, forget about wait until 70. So I plan to take SS at FRA.
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Old 01-21-2016, 11:59 AM
 
71,563 posts, read 71,730,589 times
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we don't mind waiting until 70 . one of us is certain to live well past .

we want to be less dependent on markets and interest rates . the earlier we take it the more beholden we are forever rather then just a few years now while delaying .
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Old 01-21-2016, 05:04 PM
 
2,294 posts, read 1,561,151 times
Reputation: 2737
Quote:
Originally Posted by mathjak107 View Post
we don't mind waiting until 70 . one of us is certain to live well past .

we want to be less dependent on markets and interest rates . the earlier we take it the more beholden we are forever rather then just a few years now while delaying .
Wouldn't waiting make you " more " dependent? I guess what you are saying is that you can afford to wait.
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Old 01-23-2016, 06:07 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,385,819 times
Reputation: 13971
While I was never rich from the time I was 30 I always earned a higher than normal income with a good number of years, most between 1982 and 1992, I ended up paying the limit on social security taxes. A steady as you go employment history with the longest ever unemployed at two or three days.

One thing I didn't do was save money like I should have. No, we do not have $500k saved away in a retirement account. The reality is we have a lot less than that, a whole lot less.

I started researching social security benefits when I turned 62 and it became very obvious the way I could save myself, the way I could make up for dunce moves, was to delay benefits

Looking at my last statement my monthly benefit increased by $194 simply by continuing to work and delaying taking benefits for one year between age 66 and 67.

Mathjak will correct me if I am wrong but the way I see it the $194 is exactly as if I had save $46,560 which would give me $194/month for a 20 year period withdrawing at 5%.

When I turn 68 this year add another $194 for $388 which is as if I saved $93,120. If am able to put off drawing to age 70 the extra money will be as if I had saved close to $200,000. On top of the money I earn working it is exactly as if someone was giving me a large annual bonus ($55,000?) to put away for retirement.

I worked up our budget and if I had retired and started drawing benefits at FRA we would have been OK and comfortable enough I suppose. We would be OK, we would have had enough to live and eat decently with an emergency fund if needed but... well, I don't like being constrained.

Nearly $800/month extra frees us from a lot of restraints especially when you consider, giving our tax situation, that money will be free of both federal and state income taxes.

$800 will pay for all our our electric, gas, water, sewer, garbage pick up, cell phone, internet, land line and even our property tax because we don't live in a high tax state which frees up a whole lot of our "regular" social security money for things we want to get and do.

"Regular" social security means what we would have received had I started drawing benefits at my FRA.

The biggest bonus to me is if I would happen to pass away before my wife she would pick up my benefit and live just fine and comfortable on her social security benefit alone.

As far as what we do have saved for retirement that money is just going to sit there until I reach 70 1/2 at which time I'll take the minimum and save it.

As I get older the most important thing to me isn't what I have but the security I got.
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