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the biggest factor to making poor decisions is the fact that most people do just that . they ignore the enemy
they never really learn the other side of things . you see it all the time right here in our economic forums .
those who have strong beliefs that things are a certain way high five , support , only read and parrot the views that are like their own .
they never really get in to the head of the other side to learn it from their view .
so they make their decisions based on believing their own bull .
many have been left quite poorer for it as they predict their doom and gloom .
so i have learned that if you want to really make a valid choice you need to learn the other side well enough that you can effectively argue for it as much as against it with good strong facts .
when you sleep with the enemy it should kind of leave you questioning your own views ..
You are very kind to them. I let them be poor or shoot themselves on the foot. One has to face one's action. I just ignore people who are complaining too much. I must admit, I have my quotas of people complaining, after that I can't stand it anymore.
....did I do it right. Took the age of 80 as an ending point, went to the SS website and got the estimated benefits for ages 62, 67 (FRA) and 70. Forget 70...not gonna happen. From 62 to 80= 216 months....from 67 to 80= 156 months, using those timelines, I multiplied the benefit starting at each age, times the number of months (216 & 156), and then divided the difference between the two totals by 12 months, and came up with the monthly difference in benefit if I retired at 62.....it ended up being a small amount less to cut loose at 62, and even though Medical Insurance may be the road block (will need to work the numbers at that time), if we can fund the Insurance, I see no reason to work beyond 62.....Wife disagrees. I know it's just estimates, but being 57 and 62 is around the corner, I want to be sure I'm figuring this correctly....on the upside, I also have a Pension, and love my job.
The medical insurance is a HUGE deal!
Insurance from 62 through 64 could cost you $12,000 or more a year just for one person. And it's not great insurance.
If you get a tax credit, you'll still have to pay for it up front, so if you can't pay that, you can't retire.
Another thing to think of when retiring...if you are retiring, anyway and trying to decide whether to start drawing SS or waiting, and using retirement benefits for 62 to 65, don't wait. It'll cost you more to use your savings, because of the loss of compounded investment gains on that money.
If insurance is no problem (you get ins. through your employer's pension or whatever), then you don't have to worry about that.
Another thing to think of when retiring...if you are retiring, anyway and trying to decide whether to start drawing SS or waiting, and using retirement benefits for 62 to 65, don't wait. It'll cost you more to use your savings, because of the loss of compounded investment gains on that money.
It's not so simple as that. Yes you will lose the compounded interest for 4 years but you will gain the additional SS benefit for the rest of your life. For someone born in 1950, the reduction in benefit to take it early is 25%. Basically the question is whether 25% X FRA benefit amount X life-expectancy is greater or less than the compounded savings withdrawals. The latter will depend on the interest rate you would get on investment and the amount you withdrawal. The interest rate for many people is unknown - it depends on how well stock and bonds do.
If you think you're not going to live a long time, or if you think you can get a high rate of return on investment, you will be better not delaying SS. If you don't know and you don't need it, it would be better to wait. IMO.
you need better than a 6% real return which is after inflation from a balanced portfolio to beat ss by age 90 . that is pretty tough today with rates this low starting out .
the problem is not the premiums , it is the fact all these policy's have hihger deductibles and co-pays .
i pay about 6k a year in premiums but have a 4k exposure too . on average i use about 300-400 a year in ductibles and co-pays .
My premium is almost $12,000 (but I get a partial subsidy). I forget what the deductible is because I haven't used it yet (if I can find a dr. to take it). I have to change policies every year. The co. I had last year withdrew from the state.
I don't go to the dr. at all since Obamacare, and now the new one coming down the pike. I will lose my insurance once the new program is passed, since I can't afford the premiums. I'm hoping I don't get sick or injured before I can get Medicare, and that the Medicare cuts won't be too drastic.
The amount of the premium depends on your AGE and the geographical area you live in, and whether there is any competition where you are.
Meanwhile, those of you sitting around waiting to maximize every dollar are just getting older and good retirement years are just passing you by.
I am living on less, enjoying every day, and I am FREE!
You all assume too much...health and longevity plus financial security is not guaranteed. Take it while you can, is my recommendation to anyone who can swing it NOW. Life is too short to waste any more of it on working for others.
But I like my job, to me it's fun.
I'm approaching 69, still working full time and I am not taking social security yet as I have every intention of waiting to age 70.
There is one thing that makes me feel secure and that is knowing I can quit working today and we would be able to live very comfortably.
I don't see myself retiring at 70 either but see myself working until I just don't want to anymore. Maybe 75 or 80?
With taxes it would be very foolish to collect SS benefits as solid 25% of 85% of our combined SS benefits would be gobbled up by taxes.
Most men in my family tree live to see 90, both grandmothers saw 100+ so I am counting on at least 90 in my calculations.
One plus is while we have more my wife and I could live very well on our SS benefits alone.
I never thought about calculating a break even but living well whether it's 6 months or 35 years.
My premium is almost $12,000 (but I get a partial subsidy). I forget what the deductible is because I haven't used it yet (if I can find a dr. to take it). I have to change policies every year. The co. I had last year withdrew from the state.
I don't go to the dr. at all since Obamacare, and now the new one coming down the pike. I will lose my insurance once the new program is passed, since I can't afford the premiums. I'm hoping I don't get sick or injured before I can get Medicare, and that the Medicare cuts won't be too drastic.
The amount of the premium depends on your AGE and the geographical area you live in, and whether there is any competition where you are.
It's not so simple as that. Yes you will lose the compounded interest for 4 years but you will gain the additional SS benefit for the rest of your life. For someone born in 1950, the reduction in benefit to take it early is 25%. Basically the question is whether 25% X FRA benefit amount X life-expectancy is greater or less than the compounded savings withdrawals. The latter will depend on the interest rate you would get on investment and the amount you withdrawal. The interest rate for many people is unknown - it depends on how well stock and bonds do.
If you think you're not going to live a long time, or if you think you can get a high rate of return on investment, you will be better not delaying SS. If you don't know and you don't need it, it would be better to wait. IMO.
You also have to remember that your social security check will not be taxable at full amount while your withdrawals from 401k investments will. Also when you reach RMD you might be forced to take larger withdrawals at full tax payments that might put you at a higher tax rate. Also you are assuming your investments are always going up and not suffering some down years.
There is a lot to think about and many moving pieces, there is not one answer that fits everyone.
I'm hoping to retire at 62 in next three years but will use investments to get me to FRA, but health insurance is the biggest expense in that picture and with current administration I will have to wait and see what happens on that front.
those rmd's can be very painful when a spouse dies and you have to file single and lose an ss check . high rmd's can also get you a jump in medicare premiums .
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