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Old 01-14-2018, 05:21 AM
 
Location: R.I.
977 posts, read 605,084 times
Reputation: 4232

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Quote:
Originally Posted by kelly237 View Post
.
My Soc Sec options are interesting.
I can draw on my own SS acct , on my divorced ex's SS (10 year marriage) or as a widow on my late husband's account. I have researched the options and gotten expert advice on that question.
An interesting side note is that if my ex husband were to die I would get his full SS amount (vs 1/2) and
draw about 3400 per month.
As a widow myself considering when to claim a Social Security survivor's benefit is a huge consideration. Not sure where you are getting the $3400/month benefit on your currently living ex husband ? Per the Social Security web site if someone turned FRA in 2017 and claimed at that time the highest benefit they could receive would be $2,687/month. If that same person delayed to 70 and began collecting that higher benefit in 2017 it would be $3,538.

If you are figuring that $3,400/month benefit is what your currently living ex husband would likely receive at 70, the only way you would be entitled to claim that benefit would be if he lived to and claimed at 70 and upon his death you would be entitled to receive his age 70 benefit and give up your own in the process since you can't collect both. If he dies between 62 and his FRA and not yet collected, the highest amount you would be entitled to would be his FRA amount and you have to be your own FRA to collect that maximum benefit. So if that $3,400/month benefit is what you figured your ex husband's age 70 benefit would be, his FRA amount would be 32% less which would be $2,392 which would be the highest amount you would be entitled to claim at your own FRA. An if you decide to claim early anytime from 60 to just before your FRA that amount gets reduced and there is reduction chart on the Social Security web site that given you the reduction percentages.

In my situation my late husband died at age 49 which was long before he was eligible to collect his earliest benefit. In this situation Social Security does some type of calculation looking at my late husband's past earnings history to figure out had he worked to his FRA what would his benefit likely be. For me to be eligible to claim my late husband's FRA benefit even though had he lived he would have turned his FRA of 66 this year, with me turning 61 next month I could have 1st claimed a reduced benefit last year, but to get what would have been his maximum FRA benefit I will have to wait until my own FRA age which is 66.6. Unlike one's own benefit with delaying claiming beyond their FRA that benefit grows, that is not the case with survivor's benefits.

For some people their survivor's FRA benefit is higher than their own age 70 benefit so it would not make any sense for them to not claim their survivor's benefit at their FRA because that benefit will not grow beyond that amount. Depending on the situation it would make sense for them to claim their own lower benefit at 62 then jump to their higher survivor's benefit at their FRA. In my situation my benefit is higher than my survivor's benefit from 62-FRA, but I will claim my lower survivor's benefit at my FRA and collect it for a little over 3 years and then claim my own age 70 benefit which will be in the ball park of $3,400/month. I will loose around $9,000 a year x 3 years = $27,000 to do this, but at 73 having an additional $9,000 of COLA adjusted annual income going forward I feel gives me better inflation protection than my TSP/401K which is tied to the stock market. And for me who has a low tolerance for risk, most of the money in that account will be in the G fund which does not have great growth potential but does not have much loss potential either.

Lots to consider regarding when to claim a survivor's benefit vs when to your own. And although the goal being enhancing retirement financial security is the same for all, claiming strategies from one person to the next can be as different as night and day because there all so many other factors to consider in the decision making process.
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Old 01-14-2018, 05:32 AM
 
71,537 posts, read 71,712,424 times
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survivor benefits are very tricky because there are so many rules and amounts that apply .

if both parties took ss earlier than fra and one dies it can get very confusing because there are so many variables .

but usually if that is the case and your own benefit is not higher at 70 than it never pays to delay taking survivor later than 62 .

that is because there is what is called the widows floor . to avoid to steep of a double cut if say the husband filed early and has a reduced benefit and the wife takes survivor early they use a multiplier off the full amount .

so at 62 a widow gets x.81 of her spouses full even though they filed early . waiting until 63 or 64 get you the same x.81 . only 60-61 is reduced as 60 for a widow is the husbands full x,71
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Old 01-14-2018, 01:15 PM
 
8,080 posts, read 13,460,711 times
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Nightengale212

Quote:
Originally Posted by mathjak107 View Post

survivor benefits are very tricky because there are so many rules and amounts that apply .
Isn't that the truth.
It's been a while since I worked on getting definitive answers about my SS options.
Finally made an in person appointment and think I got correct info. I will review all that and
let you know. I may be wrong about the amount if Ex dies..Doesn't matter. Not using that
possibility for any planning basis and wish him a long life.
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Old 01-14-2018, 01:33 PM
 
8,080 posts, read 13,460,711 times
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Quote:
Originally Posted by DaveinMtAiry View Post
. This is a perfect plan but can you afford a home in a beach town?
I am surprised at how many small homes are on Oak Island in the 200-225 range. That is what my townhouse should sell for.
Just talked with a friend today who is familiar with the rentals on Oak Island.
The houses that are in my budget are on the Island but not first or second row beach houses.
He thinks that the houses in the area I would be buying in may not rent well because
it wouldn't be very close to the beachfront.
I had thought they would rent but for less.
I have the other option to work a few days a week. Wilmington is just 30 minutes away for more Speech Path opportunities.

Really the same working options are available whether I live in Raleigh or Oak Island, so I see no reason to not move there. The exact timing for selling & buying and
where to live while house shopping are things I am figuring out.
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Old 01-14-2018, 02:29 PM
 
6,880 posts, read 7,278,655 times
Reputation: 9786
I don't mean to be a naysayer, and maybe it's my ignorance showing, or I just plain can't relate.
OR of course, I've just misunderstood what the OP's financial picture is.

But there is no way in the world I think she can actually retire now at 60. (My definition of retire is not work at all).
I don't think 500K is that much money. More than many, and nice to have, but not enough to truly retire at 60 -- and never work again. Not if you really want to have options and be prepared for what life could really throw at you -- in terms of the negative unexpected.

Also, OP have you said how you'll pay for buying new cars (even if used), or home maintenance, or a major home issue say -- 10-20K -- which would be addition to regular monthly expenses?

If it's true that the Soc Sec. figures you've mentioned are for you're FRA which is 66 -- then you'd have to live for six years right? So would you start drawing down the 500K at age 60? Unless there's other income you'd like to mention or clarify (don't worry about "complicating" matters the more info provided perhaps the better the responses might be.)

Again if you're going to work part time, that's not retiring. That's cutting back to work part-time.

Personally, I'd work at least part-time until Medicare age or within a year of it, but that's just me. (I also want to do a lot of traveling, and not have to penny-pinch about it, or only find the best deals, or nickel-and-dime my lifestyle.)

Whatever you decide..... good luck to you.

Last edited by selhars; 01-14-2018 at 02:38 PM..
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Old 01-14-2018, 03:00 PM
 
8,080 posts, read 13,460,711 times
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Quote:
Originally Posted by selhars View Post
I don't mean to be a naysayer, and maybe it's my ignorance showing, or I just plain can't relate.
OR of course, I've just misunderstood what the OP's financial picture is.

But there is no way in the world I think she can actually retire now at 60.
Appreciate the input..


For me it's all math.. Calculating monthly expenses, savings, social security, and estimated life expectancy.
Then calculating the odds for having enough money to last that period of time.

Cars, extra expenses are in my budget for the most part.

But with that said, you are right about planning for the unexpected. I should add more to my monthly estimate to allow for replacing appliances,costly repairs and unexpected thing.

Yes you are correct that if I fully retire I would use more savings/investments between 60 & 67, and need less after soc. sec kicks in. The worrisome thing would be a huge market downturn during those years with higher withdrawals.
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Old 01-14-2018, 03:06 PM
 
8,080 posts, read 13,460,711 times
Reputation: 10322
Regarding the car questions..

I have a $ 300 per month zero interest car loan on a new Rav 4.
Not the type to need new autos but my 12 year old high milage Highlander needed more work than
it was worth to keep.

I did not mention the car loan in my post because the payment is factored into my monthly
expenses. Because it is a 0% interest loan I have no reason to pay it off early.
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Old 01-14-2018, 03:17 PM
 
Location: Massachusetts
207 posts, read 131,974 times
Reputation: 533
Kelly - I wanted to give you a heads up. A friend of mine bought a beautiful retirement home on Oak Island. He ended up selling it within a year or two because he and his wife couldnít take how crowded and busy it was. It wasnít as sleepy as he hoped. Be careful before you buy. Good luck.
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Old 01-14-2018, 03:24 PM
 
8,080 posts, read 13,460,711 times
Reputation: 10322
Quote:
Originally Posted by HopHillers View Post
Kelly - I wanted to give you a heads up. A friend of mine bought a beautiful retirement home on Oak Island. He ended up selling it within a year or two because he and his wife couldnít take how crowded and busy it was. It wasnít as sleepy as he hoped. Be careful before you buy. Good luck.
The roads coming on & off the island are congested during peak vacation times in the summer. The rest of the year it is pretty peaceful. I have spent a lot of time there.. Where did your friend move to that was
less crowded ??
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Old 01-14-2018, 03:54 PM
 
Location: Massachusetts
207 posts, read 131,974 times
Reputation: 533
Quote:
Originally Posted by kelly237 View Post
The roads coming on & off the island are congested during peak vacation times in the summer. The rest of the year it is pretty peaceful. I have spent a lot of time there.. Where did your friend move to that was
less crowded ??
He moved to Beaufort, NC near Moorehead City. I didnít know how familiar you were with Oak Island. It sounds like it will work for you. Best wishes.
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