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Food for thought about the impact of waiting until 70 for SS and using investments in the interim. What are you going to be doing with that increased SS benefit and did you really spend all of the money you drew down? Will any of the age 70 benefit be used for investing? If so that minimizes the long term consequence of using investment money. Of course the higher the benefit the dynamics change.
I worry that my numbers aren't right because they are so different from current spending, but right now there are 2 tuitions, max retirement funding, health insurance and out of pocket medical for a full family , extra cars and insurance for young drivers, large mortgage payment, etc. But the numbers I have say that some may actually get put in savings. Not a lot but some. We'll see...
I worry that my numbers aren't right because they are so different from current spending, but right now there are 2 tuitions, max retirement funding, health insurance and out of pocket medical for a full family , extra cars and insurance for young drivers, large mortgage payment, etc. But the numbers I have say that some may actually get put in savings. Not a lot but some. We'll see...
With Time my friend you are in the being crunched stage.
While my city data handle is OLD DUFFER, I guess I am not that old.
I am a retired person, age 62. I stopped working this year but have decided to not start collecting Social Security until I turn 70.
Once I turn 70 I will be collecting $2400 a month in benefits. If I collect benefits at age 62 my monthly benefit will be about $1500 a month.
But to wait until I am 70 to collect I have to take an average withdrawal of about 7% a year from my retirement nest egg. That is a very high percentage but it temporary for eight years. Once I start collecting Social Security at age 70, my withdrawals will go down to 3%.
So if you retired and are waiting to collect Social Security until you are 70 years old are you taking out a large percent of your retirement nest egg until you reach that age?
Are you married?
In my humble opinion if you are the answer is you want to delay collecting even if it means going through all your savings if she will rely on your social security as a survivor.
Good stock market, bad stock market it does not matter if you have social security that is protected against inflation.
And then there is that question what if you live to 94 like my Aunt did?
I am 68 and while I count the days if I can put off collecting for just two more years I will collect in excess of $3,000 while my wife currently receives half my FRA benefit because I just squeezed in by 6 days last February. As far as my wife and I are concerned, given our spending habits, with the amount of benefits we will receive we won't need no stinking savings. I really like that feeling.
With Time my friend you are in the being crunched stage.
No kidding; I can identify line items on my current budget that are going away completely in the next few years that add up to over half my monthly budget. Even though I can see that in black and white, it still worries me that it just can't be right when I work on a retirement budget. I have to remind myself how lucky I am; most of America manages this part of life with that smaller budget or even less.
I discussed this with a former and retired social security regional manager. He said take SS as soon as you can. What is your life expectancy? There is no estate associated with SS so if you die then all you put in is gone. I have had a number of friends who have either died from cancer, strokes and heart attacks before age 70. One or two died in car accidents. I realize that is anecdotally but my point is there is more to ponder than cold hard numbers. I took the money early as I could and have not regretted it. It would have taken years for me to break even and frankly, I do not anticipate living all that far beyond 70 which I am now.
Each person has their own numbers and their own stomach for risk. Best of luck.
I discussed this with a former and retired social security regional manager. He said take SS as soon as you can. What is your life expectancy? There is no estate associated with SS so if you die then all you put in is gone. I have had a number of friends who have either died from cancer, strokes and heart attacks before age 70. One or two died in car accidents. I realize that is anecdotally but my point is there is more to ponder than cold hard numbers. I took the money early as I could and have not regretted it. It would have taken years for me to break even and frankly, I do not anticipate living all that far beyond 70 which I am now.
Each person has their own numbers and their own stomach for risk. Best of luck.
With all due respect George, I do not see how anyone ever comes out ahead betting on their own death coming earlier than most.
Last edited by ReachTheBeach; 06-08-2016 at 08:34 PM..
Understand. However, everyone has an idea of their family health history plus their own health status. If you have parents with cardio issues, then you are more likely to develop same. I am simply suggesting to take everything into consideration when you lay down your "bet". My people do not typically live beyond mid 70s so my decision was based on how many years it would take to break even.
Best.
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