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Old 03-27-2016, 04:34 AM
 
Location: The Berk in Denver, CO USA
14,098 posts, read 20,505,197 times
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Quote:
Originally Posted by ABQ2015 View Post
But would you make the same decision if #1 and #2 were not the case (i.e., single and parents died in early 80s)? I assume #3 just means that you have income from investments and/or pension, not that you are actually working. I agree that delaying SS is a good idea if you have a spouse or longevity genes or if SS will be your main source of income. But I'm single with a significant pension (not all that dependent on the stock market) so don't really see the point of waiting.
1. Probably not.
2. Probably not. I play around with MaximizeMySocialSecurity.com more than I should.
3. Work. I bill $90/hour for my time. So, I don't work many hours. Have not touched retirement funds.
4. Pension is $405/month.
5. Cfiresim says can stop working any time now with almost guaranteed safety.
6. I worry about being poor, a relative term/condition.
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Old 03-27-2016, 04:38 AM
 
72,425 posts, read 72,342,482 times
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Quote:
Originally Posted by ABQ2015 View Post
But would you make the same decision if #1 and #2 were not the case (i.e., single and parents died in early 80s)? I assume #3 just means that you have income from investments and/or pension, not that you are actually working. I agree that delaying SS is a good idea if you have a spouse or longevity genes or if SS will be your main source of income. But I'm single with a significant pension (not all that dependent on the stock market) so don't really see the point of waiting.
i see no reason to delay either in your case .
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Old 03-27-2016, 05:09 AM
 
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I'm 66 and waiting until age 70. It feels like what's right for us.
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Old 03-27-2016, 05:14 AM
 
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delaying can be a big tax help .

the irs gives us a great gift every year . if you have no other taxable income , we can draw up to 23k tax free from deferred accounts which were deducted at possibly high tax rates.

you can even draw up to 40k and pay about a 4.50% tax .

so over 8 years you can draw as much as 320k from your ira's and pay zero tax .

by delaying ss not only may you be able to take advantage of tax free money but the ss increases while delaying .

at least today you are better off with the higher ss check then the higher rmd's because only 85% of ss is taxed , at least up until today .

just another point to think about .
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Old 03-27-2016, 05:28 AM
 
Location: NY in body, Mayberry in spirit.
2,710 posts, read 1,783,420 times
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Quote:
Originally Posted by Newporttom View Post
We made the decision to NOT take it at 62. Primarily to ensure my wife gets higher amount if I go first. Was $18,516 back then. Now at 64 and 9 months it's $22,884. At 70 it will be almost $33,000.

I track what our retirement income would be every month (I invest for income), so the first of every month I log onto our SS accounts and get the new total if we retire immediately. Most people don't know that if you are past 62 and not drawing, the figure gets updated every month. It's very satisfying to see the results of waiting each month.

So, yes. I am happy we have waited.
Just curious here. If you started at 62, you would collect 148,128 by age 70. With the difference between 62 and 70 being 14, 484, it would take over ten years to get to the break even point.
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Old 03-27-2016, 05:32 AM
 
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it can take longer then that . if you figure lost checks and spending down invested assets as well as spousal benefits that can't be had it can run 22 years to break even from waiting 62 to 70 .

but the rewards come very quickly from that point . if one in a couple lives to 90, and that has almost a 50% chance ,you can see a 5% real return after inflation . that is almost a stock like return from what amounts to a gov't bond .
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Old 03-27-2016, 07:08 AM
 
Location: RVA
2,180 posts, read 1,282,216 times
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I know my father wishes he had delayed a few years. He is fairly uneducated and was told be all his friends that he had to file at 62. Never even heard of delaying. He didn't need the money, and banked what he collected in a stick fund and panicked in the 2008 bust sold he stock "to cut my losses" and lost more thalf of it. He got a monthly statement, and could not be convinced that any loss was recoverable, especially since he didn't need the oi ey at that time.

If you need the money, file early. If you can afford to delay, especially if its relatively easy to, and need the years of lower income to manage the tax consequences of your IRA/401k, then it makes sense as a longevity annuity. It is never about "breaking even". It's not a contest. It's about your quality of life IF you live to an old age. So studies have shown that not ah ing to take more out of IRA later because your SS is lower, allows for a larger IRA than if you took early.
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Old 03-27-2016, 07:12 AM
 
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on most of the retirement forum polls #1 regret seniors have over and over is they wished they delayed once they realized they really did live .
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Old 03-27-2016, 07:48 AM
 
Location: Close to an earthquake
890 posts, read 683,361 times
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For me at age 61 and pondering pulling the plug more than I ever have, I've analyzed the FRA versus age 70 decision to exhaustion and come to the conclusion that I'm fine if I do and fine if I don't. So I think I'll just wait until approaching FRA and then look at it again knowing that it's not all or nothing - can delay FRA and then change my mind the next day.

It's sort of like something I discovered years ago when driving to work in rush-hour traffic. I found myself pondering with miles to go whether I should take an early exit to avoid a traffic bottleneck or take the exit closer to my office. One morning, I caught myself in an intense monkey-mind state deliberating whether I should or shouldn't and then in a "Eureka moment" decided that I didn't have to decide until I approached that early exit. Work commuting was mentally-easier thereafter.

I like the discussion about longevity risk versus market risk. Other than wife's measly $80,000 IRA, we have nothing else in the market if you don't count rental income as being in the market.
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Old 03-27-2016, 07:53 AM
 
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when you know enough about the pro and cons thoroughly enough you should be able to argue with yourself just as well either for against it .
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