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Old 12-06-2018, 08:31 AM
Status: "Loving life, wife and job!" (set 14 days ago)
 
Location: USA
1,001 posts, read 389,045 times
Reputation: 2725

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Quote:
Originally Posted by GeoffD View Post
Yeah, but don't you need a passport and a retiree visa to move from Iowa to New Mexico? And you somehow have to get over Trump's wall.


Personally, I wouldn't mind having a million dollar house off Artist Road in Santa Fe.
According to certain DC officials, that's the case.

I'll let the OP take my spot once we leave AZ. I love it here but after 23 years, the summers are slowly but surely wearing me out. We'll move to the heart of Dixie once we retire. Winters are only slightly cooler than here but.... trees...four seasons....family. If I say anymore, someone might accuse me of bragging.
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Old 12-06-2018, 02:30 PM
 
Location: RVA
2,172 posts, read 1,269,651 times
Reputation: 4492
Based on the limited information in this thread, I would use that particular 401k to replace your SS income until you are ready to file. IMHO, there is no point in “living on less” so you can have more to spend later. Why do without now, when you are the youngest you will ever be? I don’t understand this propensity to advise people to do with a lower income now, for a higher income later. You want the highest income when younger, when it does you the most “good”. Enjoy your income while you can; the objective is not to die with the most money saved, but the most life lived.

You already have other adequate emergency funds and diverse incomes. By delaying filing, at LEAST the lower SS recipient will come out ahead if they are the survivor. If you file now, with both having the same SS, then neither one can come out ahead. If you (or both of you) live longer, then you have a higher COLA income for life, without an added dependence on savings generating income, as you already have funds for that. If you die, it doesn’t matter to you, and your spouse will STILL be very well off. Don’t do without so “just in case” your spouse can live better than if you were alive!
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Old 12-06-2018, 02:41 PM
 
Location: RVA
2,172 posts, read 1,269,651 times
Reputation: 4492
Quote:
Originally Posted by BC1960 View Post
You can't live on $8,300 a month?
Where did they ever say they couldn’t “live” on $8300/m? They want as much income to do what ever, as they can have... that is sort of the point for financial achievers. If one has an income of $10k/mo, or whatever and plenty of savings for emergencies and LTC, why should they only spend $8300? Because it SOUNDS like plenty to others? Why not “just live” on $4000/mo? The point is not to not spend money you have, but to spend it at a level that makes sense for now and long term planning.

OP clearly stated that their combined pensions were $6600/mo, plus spouse already collecting $1700/mo SS.
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Old 12-06-2018, 02:48 PM
 
71,735 posts, read 71,829,507 times
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you got to love when others impose their ideas about money and lifestyle on others
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Old 12-06-2018, 04:00 PM
DKM
 
Location: Thousand Oaks, CA
2,828 posts, read 1,013,065 times
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Take spousal benefits when you reach FRA, and apply for your own at age 70. Use the 401k to plug the gaps. The increase in SS is valuable enough to do this.
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Old 12-06-2018, 04:08 PM
 
71,735 posts, read 71,829,507 times
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They may not be able to do that unless they were 62 in 2015
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Old 12-06-2018, 04:14 PM
 
2,840 posts, read 1,008,958 times
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Quote:
Originally Posted by NewbieHere View Post
Well yes, it’s in response to your comment about your family health issues and break even point. My SIL’s mom was not even healthy at 60, she didn’t think she could make it, short and fat, now she’s just celebrated turning 90s, in a wheel chair, but not decrepit. So again, you never know. If I happen to live long, I plan to live well, so if I’m dead before that then it’s moot point.
And that’s fine for you. I plan to live well wether I take at 62 or FRA. Whichever decision I end up taking I’ll be fine with. My dad waited until 70 to get his he died at 80 my mom lives entirely on his SS which is not a lot but she is happy. I can adapt and be happy with whatever I have. coming from a family that came to the US with nothing we learned to survive and be happy with whatever we could afford
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Old 12-06-2018, 05:10 PM
 
Location: Idaho
1,455 posts, read 1,157,295 times
Reputation: 5503
Quote:
Originally Posted by 4khansen View Post
I will be 64 and wife and I currently have pension income of $6,600 take home a month along with her social security of $1,700 take home after deductions for Medicare premiums. So total take-home income runs around $8,300 a month.
....

This is my quandary . . . I could hold off on social security until around age 69 and let my social security grow until my take home SS is around $2,500 a month and pay down my 401K to myself, or start social security now and not use my 401k.
....
It's not an exact science I know, but what would you choose to do?
4khansen,

Since you asked "what would you choose to do?", I searched your older posts to have all the 'facts' pertaining to your situation to see what would I choose to do if I am in the same situation.

I am very sorry to learn that your wife has stage IV cancer. My life outlook and attitude about saving and spending had changed drastically last year when our only daughter was diagnosed with breast cancer.

If I was in similar situation as yours, I would not cut back on my living standard to fit our retirement income. For us, knowing that every day that we have with our beloved daughter is a gift, we have enjoyed 'splurging' every so often for some life enrichment, memory building experience with her, our SIL and their pups.

It I was you, I will try to do everything to prolong the life of my spouse. However, I have to consider the strong possibility that I will receive SS survivor benefit. There may be an option for one to receive one's own SS benefit, switch to survivor benefit when the time comes and let one's own SS grow until 70. Unless you get a firm confirmation of this option from SS office, I think the best option is to spend down 401K and delay collecting SS.

Best wishes to you and your wife.
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Old 12-06-2018, 05:21 PM
 
Location: Florida
4,372 posts, read 3,708,767 times
Reputation: 4111
Quote:
Originally Posted by 4khansen View Post
I will be re-retiring from a part-time position soon and have been putting $24,000 a year into a 401k for the last 4 years. Will have about $106,000 in that fund when I retire for good. (at 3% guaranteed interest income)


I will be 64 and wife and I currently have pension income of $6,600 take home a month along with her social security of $1,700 take home after deductions for Medicare premiums. So total take-home income runs around $8,300 a month.


I could take my social security of around $1,500 take home at 64 OR should I take $2,000 a month out of my 401k I funded and put about $400 a month into prepaid income tax a month and use $1,600 a month as income stream? That should last about 55 months.


This is my quandary . . . I could hold off on social security until around age 69 and let my social security grow until my take home SS is around $2,500 a month and pay down my 401K to myself, or start social security now and not use my 401k.


Either way I am not in any great need of the money, and I know if I use the 401k its gone and it would not go away if I didn't use it. Social Security, on the other hand, is a crap shoot. I could die tomorrow and my wife gets nothing from it. (as her social security almost matches mine exactly).


It's not an exact science I know, but what would you choose to do?
I do not use math but security. Postpone SS as long as you can. But thinking security make sure you have money in an emergency fund so you might want to save part of the 401k money if you do not have a fund. Remember your spouse can qualify for 50% of your check if it is more than theirs at your death. Also remember you SS payment grows each year you do not take it and will also get an inflation adjustment.
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Old 12-06-2018, 06:51 PM
 
Location: Upstate, NY
609 posts, read 262,402 times
Reputation: 753
Seems most here advise to delay SS. My thought is that the pension(s) will be there. Take the SS sooner rather than later. Given no pensions, my advise would be the reverse. Also, the Roth is a beautiful instrument, I would take advantage of it by converting each year until you hit RMDs. Watch the tax brackets. Enjoy.
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