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Old 09-12-2017, 09:02 AM
 
Location: next up where ever I go
588 posts, read 344,756 times
Reputation: 2087

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I am over thinking this and I need some input from those of clearer mind.

Thank you in advance

Turning 62 this month

Have $400,000 liquid assets 2/3 in IRA, 1/3 in cash and bonds 1/3 bonds, 1/3 stocks, 1/3 cash and CD

No debt, live in an apartment and is my biggest expense 50%, moving to a cheaper apartment is not feasible I have three animals (I got the kids in the divorce!) and the rents have sky rocketed so moving isn't going to give me anything

At the present time, from what is thrown off my investments and a part time job I make roughly $25000 a year

I can and do live on $2000 net an month and sometimes less.

I have Obamacare which costs me $57 and pays for my scripts. I am in pretty good shape except for a familial tremor that I have had since puberty. I have a very low out of pocket...$900

Unless I have a major, unexpected illness or injury I should be able to work part time until 70.

Question:

If I were to take early SS @ $891 per month, take from my investments and continue to work, making roughly $5000 a year this is going to move my insurance cost to about $150 per month. I will be bringing in $32000 per year.

If I take early SS and stop taking from my investments I should bring in about what I bring in now...$25000

If I do not take SS and let it grow to $1200 per month @ my FRA 66 and two months I stand to possibly loose some of my principle...which I have not yet touched

Or I could take early SS, continue to take from my investments (dividends and interest only) work my part time job and live the lux life lol! at $32000.

What do you think?

PS: I am one of those orphans so there is only me and my animals. Have a boyfriend but that only means my food bill is higher. He takes me out so it is a fair exchange!

So tell me...the lux life or live frugally and be grateful and wait for the disaster that will take all my income anyway

Thanks again!
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Old 09-12-2017, 09:20 AM
 
Location: Southern California
372 posts, read 448,278 times
Reputation: 559
The simplest answer is that if I were you, since what you're already doing is working, I would keep on with that and let the SS grow a bit.

Is there any reason you need to start, other than that you can?

You won't get your first check until November, anyway (I think, since you have to be 62 for the whole month to be paid for that month), so you at least won't be losing much if you wait.

I'd keep working, adding to my benefit with wages as you are doing, and letting that income stream grow for later.
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Old 09-12-2017, 09:34 AM
 
519 posts, read 430,841 times
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Quote:
Originally Posted by Goin' Coastal View Post
The simplest answer is that if I were you, since what you're already doing is working, I would keep on with that and let the SS grow a bit.

Is there any reason you need to start, other than that you can?

You won't get your first check until November, anyway (I think, since you have to be 62 for the whole month to be paid for that month), so you at least won't be losing much if you wait.

I'd keep working, adding to my benefit with wages as you are doing, and letting that income stream grow for later.
Agreed.
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Old 09-12-2017, 10:03 AM
 
148 posts, read 73,597 times
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Isn't your allocation a little conservative with less than 25% (1/3 of 66%) in stocks? Perhaps a little less in cash and bonds and reinvest some or more in relatively safe dividend stocks that can bring in some money while you defer SS?
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Old 09-12-2017, 10:35 AM
 
341 posts, read 171,166 times
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Why don't you wait until the end of the year before making your decision? Obamacare has so much unknown at this time with premium rate increases or whether subsidies will stay or go away. Even if Obamacare continues with subsides for 2018 there is no guarantee it will continue into 2019.

I am not making any financial decision changes until the dust settles with Obamacare.
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Old 09-12-2017, 11:44 AM
 
6,880 posts, read 7,281,254 times
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I'd wait.
Personally, for me the numbers and income wouldn't be enough for me to feel comfortable, but then, I've always liked a higher cushion than others.

But I'm not you.

I just left a cushy job at 56, now 57, looking for work outside my field. Some people though I was crazy.
But as Oprah once said -- dare I quote her -- "sometimes you just know when it's time."

So if YOU can make the decision and not regret it (even if a hiccup should happen later) -- do it, go for it.
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Old 09-12-2017, 12:59 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,385,819 times
Reputation: 13971
Quote:
Originally Posted by TMKSarah View Post
If I were to take early SS @ $891 per month, take from my investments and continue to work, making roughly $5000 a year this is going to move my insurance cost to about $150 per month. I will be bringing in $32000 per year.

If I take early SS and stop taking from my investments I should bring in about what I bring in now...$25000

If I do not take SS and let it grow to $1200 per month @ my FRA 66 and two months I stand to possibly loose some of my principle...which I have not yet touched

Or I could take early SS, continue to take from my investments (dividends and interest only) work my part time job and live the lux life lol! at $32000.

What do you think?

PS: I am one of those orphans so there is only me and my animals. Have a boyfriend but that only means my food bill is higher. He takes me out so it is a fair exchange!

So tell me...the lux life or live frugally and be grateful and wait for the disaster that will take all my income anyway

Thanks again!
To cover whatever expenses you have I'd use the savings and wait to 70 to take social security.

If your benefit is $891 now by waiting to 66 you should be able to receive $1,185/month or $294/month more.

What is that extra $294 worth? In my mind it is nearly exactly like you saved an extra $70,560 in your IRA accounts. That is withdrawing $294/month for for 20 years. 12*20*$294=$70,560.00. That is as if you saved $17,640.00 to your IRA account every year for the next four years.

Now if you wait another four years to age 70 your benefit will nearly double from what you would receive at age 62 to $1,564.00 monthly. That's $673 more every month or $8,076 more every year.

The difference between age 62 and 70 is as if you saved an additional $161,520 to your IRA or $20,190 every year for eight years.

And another way to look at it is more most of us, not all of us I said "most", this extra social security money is exempt from state and federal taxes whereas your IRA withdrawals are not.

Also, with increased social security benefits this money does have guaranteed COLA's and one thing I am looking for today isn't great dividends but safety, safety, safety and a guaranteed COLA even if not what real COLA is. In construction contracting most of my life I gambled a lot but I don't want to gamble anymore.

We are all different and there isn't any wrong or right answer; you need to do what fits you.

As for me I would not take benefits until I am 70 (one year to go!) unless I was diagnosed with a terminal illness or the like. But then I am not you; you appear to have about four times the retirement savings I have (I spent my money having a good time getting what I wanted out of life) but by waiting to 70 my monthly social security is estimated to be $3,100 tax free dollars every month and with my wife's additional social security of $1,250 tax free every month we don't need millions in a savings account.

So if I were you I would put off collecting to age 70 but then I am not you. You need to do what you are comfortable with.
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Old 09-12-2017, 01:08 PM
 
Location: next up where ever I go
588 posts, read 344,756 times
Reputation: 2087
In answer to your opinions, thank you again,

Waiting to see what happens with Obamacare is wise

I would allocate more stock in my portfolio, however, stocks, IMO, are over valued. If I were to do that, I would when the market cooled a bit with the cash I have on the side

I don't know if I would regret taking SS now, that is a future proposition, spin the wheel and see what happens

As far as a cushion, I am so very grateful that my financial life did so well. It is all in perspective I suppose. I have adequate shelter, good food, healthcare, happy animals, good friends, safety...what more could I ask for.

I like the first poster's attitude...if it is not broken...why try to fix it. The rub is the healthcare. If my premiums go sky high I may have to file for SS. One can only hope that it will not.
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Old 09-12-2017, 01:13 PM
 
Location: next up where ever I go
588 posts, read 344,756 times
Reputation: 2087
Quote:
Originally Posted by nicet4 View Post
To cover whatever expenses you have I'd use the savings and wait to 70 to take social security.

If your benefit is $891 now by waiting to 66 you should be able to receive $1,185/month or $294/month more.

What is that extra $294 worth? In my mind it is nearly exactly like you saved an extra $70,560 in your IRA accounts. That is withdrawing $294/month for for 20 years. 12*20*$294=$70,560.00. That is as if you saved $17,640.00 to your IRA account every year for the next four years.

Now if you wait another four years to age 70 your benefit will nearly double from what you would receive at age 62 to $1,564.00 monthly. That's $673 more every month or $8,076 more every year.

The difference between age 62 and 70 is as if you saved an additional $161,520 to your IRA or $20,190 every year for eight years.

And another way to look at it is more most of us, not all of us I said "most", this extra social security money is exempt from state and federal taxes whereas your IRA withdrawals are not.

Also, with increased social security benefits this money does have guaranteed COLA's and one thing I am looking for today isn't great dividends but safety, safety, safety and a guaranteed COLA even if not what real COLA is. In construction contracting most of my life I gambled a lot but I don't want to gamble anymore.

We are all different and there isn't any wrong or right answer; you need to do what fits you.

As for me I would not take benefits until I am 70 (one year to go!) unless I was diagnosed with a terminal illness or the like. But then I am not you; you appear to have about four times the retirement savings I have (I spent my money having a good time getting what I wanted out of life) but by waiting to 70 my monthly social security is estimated to be $3,100 tax free dollars every month and with my wife's additional social security of $1,250 tax free every month we don't need millions in a savings account.

So if I were you I would put off collecting to age 70 but then I am not you. You need to do what you are comfortable with.
Thank you, your post really puts it down to nuts and bolts of the thing....I am going to try to hold off on taking it.
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Old 09-12-2017, 02:02 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,385,819 times
Reputation: 13971
Another way I look at it is by waiting to 70 it is exactly as if your employer gave you, this is in addition to your salary, a Christmas bonus of $20,190 every Christmas from age 62 to 70. Yeah, that $20,190 after tax Christmas bonus is yours every year and that makes it awful hard to quit. Working full time that's an extra $10.00 per hour added to my hourly pay.

Social security isn't a retirement it's "old age insurance" for against the time you can no longer work and I believe a good portion of people would be better off it more looked at it that way.

Also speaking of ObamaCare and health insurance.

At 65 you will be picking up Medicare and it ain't free. With my supplements it's the best insurance I've ever had but the total cost of Part B, Plan G and Plan D is right at $300 every month and the Part B, currently $134/month, comes right out of your social security benefit so that $891 will be coming to you less $134 so your can expect a check for $757. From here expect to spend an additional $165 or so for the supplements.

In retirement you can never have enough money...
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