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Old 03-10-2016, 07:24 AM
7,795 posts, read 4,383,926 times
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Again, being frugal, it will be hard to "leave money on the table" by taking it early, but at some point you have to start spending it down instead of storing it up (at least if you're single with no survivors).

It'll be a hard habit to break, but I think maybe I can get used to it???
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Old 03-10-2016, 07:26 AM
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Originally Posted by borninsac View Post
What a great statement you made that is definitely food for thought for many who read here. Thanks for your wisdom.
it isn't my wisdom , but the wisdom of quite a few smarter then i am .
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Old 03-10-2016, 07:29 AM
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Originally Posted by elliotgb View Post
Yes, and I was forced into retirement.
But, I had gone to my FA last year to make sure I was positioned to retire and had funds to last into my 90's.
It was all laid out, including the MRD process and I am able to draw down on investments until age 66 (FRA).

It was made clear to me by more than one person that delaying until FRA pretty much guarantees a payout from Social Security that is akin to an annuity. So, I don't need it right now and have chosen to delay.

Some people may need their SS ahead of FRA and there is no one size fits all here.
my feeling is if you need to lay out more than 40% of your savings to delay you can't afford to delay . retiring early and delaying ss is a luxury not many have the resources to do without a pension or other income .

Last edited by mathjak107; 03-10-2016 at 07:50 AM..
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Old 03-10-2016, 08:52 AM
Location: Chicago area
14,374 posts, read 7,916,313 times
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Originally Posted by animalcrazy View Post

First off congratulation on your battle with this horrible horrible disease. I do find your post very interesting. If you were happy being thrifty well that's your choice and nobody can argue it. Now you are suggesting others lean a bit the other way, suggesting others enjoy life while it's still an option. Good for you for doing such an about face but I have to wonder if you would have done this had you not faced your own mortality.

The answer is probably not. Those workaholic habits were a big part of my life for decades. We would work a midnight shift, take a nap for a couple of hours and go work on one of the income properties. That way of life would go on for months until the property was rented.

That work ethic didn't leave me when the property was producing and when John retired two years before me, the money addiction grew stronger. I would work from 3pm until 6am, grab a nap and work from 3pm to 1130pm that same day.

I was totally miserable living like this until I saw the paycheck. I'm high risk for breast cancer and already had a lumpectomy in my thirties. Yet, I neglected to have my mammogram for three years because I was too busy working. Don't ask me how I knew but I knew something was wrong after I left from having the routine exam.

I went for a diagnostic mammogram on John's birthday, of all days, last year. It was terrifying and the technician kept returning over and over for more views. I was convinced that I was doomed, but fortunately, it was nothing serious.

At about that same time our new manager told me that I had to comply with the 12 hour shift requirements but I decided that I'd rather live another couple of decades instead. I had an in for a couple of other jobs but the money became unimportant. Had I not been given a warning I probably would still be a workaholic wage slave. Sometimes something dramatic needs to come along and slap you upside the head.

I don't regret retiring early. For the first time in many decades I feel totally alive and not on automatic pilot. I feel sorry for people who don't have options and didn't plan well enough. I can actually see the whole forest now and it's beautiful.

Oh yeah as far as the super bug goes, I just made it a full year without antibiotics. I'm not sympton free but fingers crossed.

Last edited by animalcrazy; 03-10-2016 at 09:09 AM..
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Old 03-10-2016, 10:09 AM
Location: Idaho
1,452 posts, read 1,153,447 times
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Originally Posted by selhars View Post
Whether a person should be nervous about spending down savings…ultimately I would think… have to do with:
-- how much they have to start with
-- how much and how quickly they draw it down…and….
-- how low they're willing to let it get, before claiming their benefit.
I agree. Other factors for a couple to consider whether to delay collecting SS until 70 are:

1. The ages of the spouses:

If one is older, the staggered delays will help to minimize drawing down the savings. In addition, if you meet the age requirements to be not impacted by the recent changes, you can take advantages of the file and suspend and restricted filing.

2. Whether both retire at the same time

3. Whether one or both retire before Medicare eligible age.

4. Expected longevities.

For our case, my husband retired before me and he is older so it just makes sense for him to delay collecting SS until his max benefit at 70. I can collect 1/2 of his benefit at my FRA and my max benefit when I turn 70.

My husband stays on my insurance policy while I was working until last November. We have free Cobra insurance until the end of this month. What we did not know was that the insurance company expected my husband to have Medicare part B during the Cobra coverage time frame. This was not a requirement in an employer coverage policy. So we ended up having to pay for this missing Medicare part B coverage for a doctor's visit, a lab test and a medical device.

The bottom line is that there are many factors to consider and while it's interesting to learn about other people's decisions, it's hard to find one which fits your situation, attitude and feeling about saving, spending, financial security etc.
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Old 03-10-2016, 11:54 AM
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Of course, you can't take your savings with you, either, so why not spend down savings to ensure a higher monthly income later? Now I'm getting a headache...
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Old 03-10-2016, 12:16 PM
Location: Alaska
5,356 posts, read 16,342,402 times
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Originally Posted by Cameron60 View Post
Do you guys us the social security retirement estimator which accounts for all your earnings?
Any experience as to the accuracy of this calculator if your over 60 and had no earnings last year and no plans of having any in the future.
It is fairly accurate if you put in $0 for your future years. I personally used the downloaded version because I fall under WEP and it was exact.
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Old 03-10-2016, 12:41 PM
Location: Alaska
5,356 posts, read 16,342,402 times
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I retired at 60, spent down my retirement savings and just started taking SS at age 62. The main reason I did so was to leave a bigger inheritance. We want to leave our kids a 6 figure inheritance each vs. them splitting at most, a low 6 figure amount. I believe mathjak107 started a thread years ago that went over reasons for taking SS early vs. later.

One subject I don't believe was mentioned is what are your expenses in retirement? Will taking SS early plus other sources cover them or is waiting a necessity? In our case, my projections show we'll have a 15 year period where all income sources will exceed expenses, allowing our retirement savings to grow. So for us, there was no need to wait.
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Old 03-10-2016, 12:59 PM
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big difference was markets were still in recovery mode a few years ago and were rising nicely . at this stage the next decade is projected to be much more muted and difficult .
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Old 03-10-2016, 01:32 PM
Location: Whereever we have our RV parked
8,766 posts, read 7,695,901 times
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If I were in your shoes, I wouldn't be so OCD about it. If you want to, retire and take SS. Remember that tomorrow is guaranteed to no one. My wife was perfectly healthy until a few months ago and is now fighting for her life. Don't assume you're going to live till 100.
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