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So I talked to the mob boss that owns my money, um I mean my Morgan Stanley "advisor".
He asked about and told me I should take Social Security at 62 (I am now 62 and a half). Full social security for me is 66 and 4 months.
He rattled off some way of figuring
1833 now
95,316 total not taking, left on the table
673 a month divided into 95,316 = 141 x 12
11.8 years
+ 66.4
equals a break even point of 78
I have no idea what he was talking about, just managed to write this much down as he was talking.
He did say he didn't have any reason to tell me to take soc security now which I thought was funny. I know its because if I don't I might want some money from my MS account and I have never been able to pry their hands off it. Instead they always suggest loaning me money against my accounts in stocks. Lose the stock money and still owe the mob. Right. I know I know its similar to a bank loan but it doesn't feel that way when you are talking to them.
I did a search in city data because I know social security gets discussed a lot but it's all buried in a lot of various posts and most people are married or divorced.
helpful info?
I'm single, always have been.
I know Michigan is not that retiree tax friendly.
I have roughly equal amounts in MS and TSP. A very small acct in MS is IRA but by and large not.
I was living low key/ok on my somewhat small pensions (federal and air natl guard). Its a little tougher now that the Soc Security offset that federal pensions provide till you hit 62 is gone. I was living in an apt but now I'm living rent free in my mothers old home so its a bit of a wash. (I plan on posting sometime in the rent vs. house debate because so far living in a house has been at least as expensive.) Anyway, I'm still mostly within my pension budget if I'm careful. Maybe no trip to FL this year though. Its library books and netflix as a pretty steady diet. I would like to develop a lot I have up north either for summer or full-time but I'm not sure I can afford it.
So, I apologize for yet another social security post but if someone could point out
the main ways of deciding,
the best website,
explain the above....
I'd appreciate it greatly. I'm supposed to make the decision in a month and report back to the mob.
(P.S. G fund TSP netted 15,000 for 2018 and MS in a "3" risk out of 1-5 lost 45,000, thats from 1 Jan not the high plus I probably paid all sorts of fees. I would love to be able to just roll my funds into TSP although I know most do it the other way).
I think what MS is saying is: the break-even point on taking SS at 62 versus 67 years is about 13-16-years. This is when the total reduced-rate amount received from 62-on, would equal the total higher-rate amount received if one waited until 67.
this is not a short answer question and needs loads of details .... the decision involves so many other factors other than what if i die .
are you retiring at 62 and living off your own assets if you delay ?
The OP is already retired; you may have missed the part where the he stated that he was living off of his pensions. You may have also missed the part (since the OP wasn't clear on the issue or ramifications) that the OP's federal pension was reduced at age 62 due to his simply becoming eligible for Social Security. That's an important consideration for federal employees/retirees covered by FERS.
When a FERS employee retirees before age 62, in addition to his basic defined benefit annuity, he also receives a supplement (sometimes referred to as a "Social Security Supplement" even though it is paid by OPM and has nothing to do with SSA) that will pay him an approximation of what SSA would pay him at age 62, but based solely on his federal service. (I hope that wasn't too convoluted.)
So whereas most people just have to make a decision at age 62 about whether they want to simply delay receiving SS, a FERS retiree can suffer a significant reduction in his retirement income by choosing not to elect to take SS at age 62. As I noted earlier, at age 62, his FERS Supplement ends and his income is automatically reduced whether he chooses to take Social Security then or not. Thus, many FERS retirees feel forced to take Social Security at age 62 less they suffer a reduction in retirement income.
but it isn't 17 years if they are retiring and laying out the dough . that increases it to 22 years. it makes a difference when you are spending down invested assets or assets that could be invested as opposed to working and delaying which does not spend down .
This is HUGE decision that involves over a $100K for the rest of your life.
Unless you die next week.
You cannot change this decision. (And, yes I know about the fine print allowing some changes.)
If your annual expenses with Morgan Stanley are more than 0.3%, you are being ripped off. (Mine are 0.15% at Fidelity)
Personally, I think the best place to have your money is at: Schwab, Fidelity, Vanguard.
Educate yourself and manage your own money. Just remember, you are in it for the long haul and don't panic during downturns.
Last edited by davebarnes; 01-12-2019 at 11:14 AM..
The OP is already retired; you may have missed the part where the he stated that he was living off of his pensions. You may have also missed the part (since the OP wasn't clear on the issue or ramifications) that the OP's federal pension was reduced at age 62 due to his simply becoming eligible for Social Security. That's an important consideration for federal employees/retirees covered by FERS.
When a FERS employee retirees before age 62, in addition to his basic defined benefit annuity, he also receives a supplement (sometimes referred to as a "Social Security Supplement" even though it is paid by OPM and has nothing to do with SSA) that will pay him an approximation of what SSA would pay him at age 62, but based solely on his federal service. (I hope that wasn't too convoluted.)
So whereas most people just have to make a decision at age 62 about whether they want to simply delay receiving SS, a FERS retiree can suffer a significant reduction in his retirement income by choosing not to elect to take SS at age 62. As I noted earlier, at age 62, his FERS Supplement ends and his income is automatically reduced whether he chooses to take Social Security then or not. Thus, many FERS retirees feel forced to take Social Security at age 62 less they suffer a reduction in retirement income.
This is HUGE decision that involves over a $100K for the rest of your life.
Unless you die next week.
You cannot change this decision. (And, yes I know about the fine print allowing some changes.)
If your annual expenses with Morgan Stanley are more than 0.1%, you are being ripped off.
Personally, I think the best place to have your money is at: Schwab, Fidelity, Vanguard.
Educate yourself and manage your own money. Just remember, you are in it for the long haul and don't panic during downturns.
The OP is single. How complex is maximize my SS? Does it take your portfolio or whether your state taxes SS and the state tax rate into account? Retirement income levels and whether SS will trigger additional taxes? I am single and have used the free online SS planners. Without spousal benefits or a survivor, the results are simply to take SS at 70. So I'm reluctant to spend $40 for the same advice.
I don't have any insight into the question at hand... but Giesela, your post is so funny. It made me laugh.
Morgan Stanley = The Mob. LOL.
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