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Old 10-09-2017, 05:33 PM
 
Location: Ypsilanti, MI
2,430 posts, read 3,657,283 times
Reputation: 4752

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I went to the site forearmed with the data for questions they asked last-time for which I did not have ready answers, and encountered one new historical question. "Who was the Finance Company for the auto loan paid off in 2009?


I knew their name when we initiated the loan, but I also knew they changed names with the corporate bankruptcies that occurred during the Great Recession. I had a 50% chance of getting it correct and guessed right before the page timed out. I had trouble locating the Pay-off Letter and thought a 50% chance was better than a guaranteed failure with a time-out.


I found the site to be less useful initially than I had hoped. I need to log-in again and explore more. I may even need their on-line assistance to answer my question regarding claiming benefits at age 70, benefit amount, if I stop work before my 63rd birthday.


Should I draw down other investments for living expenses during that 7 year period to minimize future RMD's, or file for SS benefits when I stop work? I need some more data within the next 15 months.
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Old 10-09-2017, 06:20 PM
 
71,456 posts, read 71,629,249 times
Reputation: 49006
there is so much thought and other decisions that go in to when to take ss that no one can give you the correct answer . a simple answer to a complex question will be the wrong answer . it is based on your financial situation , your tax situation , your marriage situation and your feelings about market risk vs longevity risk
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Old 10-10-2017, 04:17 AM
 
Location: Ypsilanti, MI
2,430 posts, read 3,657,283 times
Reputation: 4752
Quote:
Originally Posted by mathjak107 View Post
there is so much thought and other decisions that go in to when to take ss that no one can give you the correct answer . a simple answer to a complex question will be the wrong answer . it is based on your financial situation , your tax situation , your marriage situation and your feelings about market risk vs longevity risk
I agree completely. I am just looking for another data point to assist in making a complex decision. The question I included in my post is not a question I expect to be answered here, rather it is a question that can be/should be answered by my own SS data. This answer, when coupled with our personal financial situation and life goals, will assist my wife and I in making our retirement decisions.

Last edited by MI-Roger; 10-10-2017 at 04:26 AM..
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Old 10-10-2017, 04:26 AM
 
71,456 posts, read 71,629,249 times
Reputation: 49006
there really is no data point there is so much involved .

there are web sites like social security solutions , to name but one that will do full comprehensive work ups based on all the aspects . but depending on the level of work up they charge more and more . even the most comprehensive is still pretty reasonable .

everything from total dollars to tax situations when rmd's are considered to getting your social security taxed is looked at . then you have survivor benefits , spousal benefits and longevity to consider . there are aca benefits to consider as well as being able to use zero capital gains brackets .

depending on your portfolio needs you have to decide if you want to be more dependent on markets rates and inflation as the wild card or more longevity risk based .

as soon as someone says to you take it early, what if you die ? move on . they have little insight in to all the ramifications of what could be one of the biggest financial decisions of your life .
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Old 10-10-2017, 04:48 AM
 
Location: Central Massachusetts
4,800 posts, read 4,842,106 times
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MI-Roger you are correct. You will need to look at your own financial situation (data) to figure out your best solution. Keep in mind to not make it more complicated than it really needs to be. It is as simple as this.

If you have resources to postpone SS to 70 at least one of you should do that. Simply because of longevity. Typically it will be your SS that is the higher of the two and your wife is more than likely to survive you. That is not the case though in every couple. Using savings like IRA's and 401k's to bridge the gap is a great strategy and should be explored.

In my case it took me a while to explain to my wife that spending down from 401k made sense. I slowly explained that even for her it would be very important for her to spend down her 401k to postpone taking her own SS until FRA for maximum benefit in for her.
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Old 10-10-2017, 06:42 AM
 
71,456 posts, read 71,629,249 times
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we found a balance in the middle at 65 .

we found it silly spending down to much in assets delaying . it would take over 800k if we delayed to 70 as well as giving up a substantial spousal benefit while delaying . my wife was due a few thousand a year and can't get a dime until i file so it is not just my checks we give up . it is her spousal adder and we are spending down money that could be invested and have potential good returns .

by delaying the few years we are a bit less dependent on markets and a bit more dependent on longevity .

my first check is coming tomorrow .

the reality is that most folks who retire at 62 tend not to have enough in assets to safely lay out the extra dough while delaying .

delaying would not be a good choice if you are retiring at 62 and not going to spend your first extra dime until 70 when ss kicks in . to me that would not be a good choice lifestyle wise .

the idea behind delaying and retiring early is usually you set your draw day 1 based on ss in the mix . then all that happens is the make up of your income shifts from all on you to you and ss when it kicks in . now you spend way less of your own money going forward .

basically it is just a swap of more of your money early on making up the same income and less money of yours making it up down the road .

most americans will spend down far to much delaying and really do not have that option so delaying may not make sense .

for most delaying works well while working .

Last edited by mathjak107; 10-10-2017 at 07:27 AM..
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Old 10-10-2017, 06:53 AM
 
Location: NC
6,543 posts, read 7,956,796 times
Reputation: 13438
Beware that if you have done a "file and suspend" your mysocialsecurity account will have been locked and you cannot get ANY personal information. Furthermore you must change your password every 6 months for that account, only to continue finding no information. And when you turn 70 under those circumstances they do not acknowledge that in a letter or anything. Right now I am in that twilight zone of waiting to see if I get a check, how much it will be for, and if my medicare premium will be taken out of it. If you don't meet the "average" of several situations therefore, you can only communicate by phone (long holds) or in person (long waits).

Last edited by luv4horses; 10-10-2017 at 07:19 AM..
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Old 10-10-2017, 09:32 AM
 
1,687 posts, read 607,568 times
Reputation: 1752
One side of my family is traditionally very long lived, my parents are still full of health and energy at 82, I don't like thinking about/dealing with money so my retirement is heavily annuity-based, so in my case taking soc security at 70 is a no-brainer even though I am pursuing an early-ish retirement.

Tangential question. I have not looked into soc security rules in detail yet (I am 12.5 years away from the 70th birthday), but vaguely remember reading somewhere that one has to apply for soc security several months before the 70th birthday (if one wants to start collecting at 70), but then they count that as starting to collect at 69 (with a certain % of lifelong decreased income) unless you do some additional thing to assure that, starting on the 70th birtdhay, you are indeed given the correct amount for the age of 70 (rather than 69). What is this additional thing that you need to do?
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Old 10-10-2017, 10:33 AM
 
Location: OH>IL>CO>CT
5,225 posts, read 8,384,895 times
Reputation: 7180
Quote:
Originally Posted by elnrgby View Post
One side of my family is traditionally very long lived, my parents are still full of health and energy at 82, I don't like thinking about/dealing with money so my retirement is heavily annuity-based, so in my case taking soc security at 70 is a no-brainer even though I am pursuing an early-ish retirement.

Tangential question. I have not looked into soc security rules in detail yet (I am 12.5 years away from the 70th birthday), but vaguely remember reading somewhere that one has to apply for soc security several months before the 70th birthday (if one wants to start collecting at 70), but then they count that as starting to collect at 69 (with a certain % of lifelong decreased income) unless you do some additional thing to assure that, starting on the 70th birtdhay, you are indeed given the correct amount for the age of 70 (rather than 69). What is this additional thing that you need to do?
When I applied on-line 3 months before 70th birthday to start Retirement benefits at age 70, there was nothing "extra" to do beyond stating that my intended start date to be my 70th birthday.

The SS agent that did the follow-up phone call did try to offer me a 6 month retroactive lump sum, but that would have reduced my monthly payment to the age 69.5 rate. I declined, as my whole intent of delaying was to maximize the monthly. The agent acted surprised at my turndown. Maybe most people jump at the chance of a check for 10s of 1000s. YMMV
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Old 10-10-2017, 11:20 AM
 
Location: NC
6,543 posts, read 7,956,796 times
Reputation: 13438
So, I just tried again to reach Social Security. After 2 min of irrelevant information I was told wait time would be 40 min. I waited 40 minutes, listening to headache inducing music and more useless info. Then the phone went dead. So I called back, went through the unnecessary info and preliminary automated questions again. Was told "we are sorry, too busy, call back another time." And so it goes. No offer for call back either.
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