U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 01-12-2019, 08:23 AM
 
7,977 posts, read 11,652,026 times
Reputation: 10473

Advertisements

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).

Thanks
Quick reply to this message

 
Old 01-12-2019, 08:32 AM
 
71,463 posts, read 71,629,249 times
Reputation: 49027
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 ?

Last edited by mathjak107; 01-12-2019 at 08:46 AM..
Quick reply to this message
 
Old 01-12-2019, 09:03 AM
 
Location: Florida -
8,760 posts, read 10,829,371 times
Reputation: 16632
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.
Quick reply to this message
 
Old 01-12-2019, 09:06 AM
 
8,180 posts, read 11,900,573 times
Reputation: 17914
Quote:
Originally Posted by mathjak107 View Post
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.
Quick reply to this message
 
Old 01-12-2019, 09:07 AM
 
71,463 posts, read 71,629,249 times
Reputation: 49027
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 .
Quick reply to this message
 
Old 01-12-2019, 11:02 AM
 
Location: The Berk in Denver, CO USA
14,013 posts, read 20,317,250 times
Reputation: 22724
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.)

Go to https://maximizemysocialsecurity.com/purchase and spend the $40.
I did. It is worth every penny.
Play with it. Learn.

Spend a bunch of time reading at https://www.bogleheads.org/forum/viewforum.php?f=10
And, by bunch, I mean 20+ hours.

Then, consider spending $90 for https://maxifiplanner.com/sign-up

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..
Quick reply to this message
 
Old 01-12-2019, 11:06 AM
 
71,463 posts, read 71,629,249 times
Reputation: 49027
Quote:
Originally Posted by MadManofBethesda View Post
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.
thanks ......
Quick reply to this message
 
Old 01-12-2019, 11:14 AM
 
Location: Albuquerque NM
1,656 posts, read 1,521,066 times
Reputation: 3627
Quote:
Originally Posted by davebarnes View Post
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.)

Go to https://maximizemysocialsecurity.com/purchase and spend the $40.
I did. It is worth every penny.
Play with it. Learn.

Spend a bunch of time reading at https://www.bogleheads.org/forum/viewforum.php?f=10
And, by bunch, I mean 20+ hours.

Then, consider spending $90 for https://maxifiplanner.com/sign-up

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.
Quick reply to this message
 
Old 01-12-2019, 11:24 AM
 
Location: The Berk in Denver, CO USA
14,013 posts, read 20,317,250 times
Reputation: 22724
Quote:
Originally Posted by ABQ2015 View Post
So I'm reluctant to spend $40 for the same advice.
Then, don't.
I personally thought it was useful.
Especially for the charts.
But, you know, $40 is a lot of money.
Quick reply to this message
 
Old 01-12-2019, 11:34 AM
 
231 posts, read 96,737 times
Reputation: 682
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.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top