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 06-11-2019, 12:01 AM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492

Advertisements

Quote:
Originally Posted by HeelaMonster View Post
I am with you in waiting until 68-70, but you must be a rare bird (or have paid in at the max for 40 years). If so, good on you! Almost no one is receiving the max benefit (currently $3770 at age 70), and most are receiving $700-1800 per month....
Yes, I will have paid in over the max for 39years through 2020. Since predicted future SS amounts are in 2019 dollars, $4k/month is not much of a stretch in 8-9 years. The closer I (hopefully) get to 70, I know the harder it will be to ignore that “free” $4k/mo. It makes little sense to go past 69, since you always have the option of paying back the last year, and starting at the higher age 70 amount if you want.
Reply With Quote Quick reply to this message

 
Old 06-11-2019, 12:10 AM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492
Quote:
Originally Posted by MI-Roger View Post
It basically it a wash with regards to how much income you collect from SSA whether you file at age 62 or 70. With one variable, life expectancy.
  • If you have a serious medical condition or conditions which medical experts tell you will result in a shortened life expectancy, then you should file at 62 based on this known issue.
  • If you are convinced that you will live beyond the average life expectancy value of 85 years, for whatever reason, then wait until you are 70. But remember, you could step off a curb and be run over by a bus at age 69-1/2 regardless of your genetic and family history.
And don't forget the 'gotchas'.
  1. If you choose to delay until age 70 you must have other investments or income streams sufficient to sustain you until that age. This alone precludes many from waiting.
  2. If you file early you must have other income to compensate for the permanent reduction in your early benefits.

Don't be like my M-I-L and file at 62, convinced her SSA benefit would automatically increase at age 65.
Exactly correct. It is longevity and risk insurance, especially for a married couple. If my spouse were to predecease me before I filed, I would likely file then, as a large part of it is survivor benefit for the lower earning spouse. DW collected at 62, as the difference in waiting was not a factor in retirement income for us.

It is far easier for me to imagine being 85 and older, with a higher COLA income, and less dependent on my investments. I know it is unlikely that my mind will be Warren Buffet sharp at that age. IF you have the wherewithal to retire early AND delay filing, you absolutely will have MORE income from the start while young enough to enjoy it, because there is no fear of running out later. I WANT to pull that extra $4k/mo from my portfolio while I am the youngest I will ever be and enjoy ourselves. There is no spousal adder for us, so not a factor. And any decision to delay has a built in 6 month do-over if I change my mind. The only negative is the loss of Medicare hold harmless protection from waiting.

For people that have worked and saved it is a difficult 180 degree turn around to one month socking it away, then the next month socking away nothing and drawing it down! Many people can NOT make that change. They want that egg to keep on growing.....but for what? And THAT is the crux of having enough to afford early retirement and delaying for those that can easily afford to do so. They HATE to use their savings because it’s savings!

If filing at 62 enables you to retire early and enjoy life, then by all means, DO IT! But more income now rather than later is not even remotely a reason, unless you know or have good reason to expect to die younger. In which case, filing sooner always makes more sense.

Possibly more savings now than later is a scenario, but here’s the thing: if I spend like I have my delayed amount from the beginning of ER, file at 70, and drop dead at 75, long before “break even”, I will have enjoyed that higher income the whole time I was alive. That’s what counts to me. There will still be way more than anyone should expect left for survivors or heirs. I mean I WILL be dead, so I can only care so much. If I happen to stay alive, then I still win, and should I (or DW) become mentally unable to handle our investments, at least the maximum income is protected.

Last edited by Perryinva; 06-11-2019 at 01:19 AM..
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 12:43 AM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492
Quote:
Originally Posted by NewbieHere View Post
Yeah but the checks keep coming regardless. As I often said crudely, even if you’re 95% dead you still get a check from SS. When you’re in that condition, you’re not going to check your retirement account. Even withdrawal from RMD is not automatic. Hence I plan to buy some annuities at around age 80 to simplify my kid’s life. They will be managing my money when I’m old and senile, not me. So delaying to take SS is also part of that plan. It has nothing to do with wether you come out ahead or not. Also have the biggest check from SS helps me avoiding paying a lot of state tax, they don’t tax SS, most states don’t. You want to make that the largest pile you can.
Bingo! If guaranteed COLA income is a priority, then it is impossible to beat SS as the best annuity available. Period.

Last edited by Perryinva; 06-11-2019 at 01:19 AM..
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 12:48 AM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492
Quote:
Originally Posted by pknopp View Post
I agree with you there. If I am enjoying working still, I will delay. If I can work out the kind of schedule I want to work, I very well might hang around longer.



Right, the 401K will then continue to sit also. Or at the very least, more of it depending on how much I decide to work.
But what is all that money sitting in those accounts DOING for you? Do you just like to see big numbers? Will you lovingly caress your bank statement as you take your last breath and exclaim “Look everyone, I won!!” If leaving the most behind is more important than the income is while alive and ready to be used, well then, that is of course your choice, and a perfectly valid reason. I just don’t get it.
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 12:57 AM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492
Quote:
Originally Posted by joepierson View Post
My parents lived into their mid-90s but rarely spent any money past 82 or so. They mostly just stayed at home just visiting the grandkids after 82. Really no need for any more money then SS was paying them, in fact they saved most of it.

So there are two things to consider, how long you are going to live and how long active are you going to live.

I don't see the point in waiting past 62 even if you think you going to live to 120. Money has a lot more value in your 60's vs your 80's.
So based on your very logic, delayed filing makes more sense, since you have more to spend right from the beginning. Using your own parents as an example, if their savings was $200k less but their SS was more than double, how would it have changed their lives? There might be less left behind for YOU, but that shouldn’t be the deciding factor. As you stated, they were still putting money away because they couldn’t spend it, so there would be even MORE not being spent, AND they would have been able to spend more when younger. Still
Trying to see the reasoning here....
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 01:07 AM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492
Quote:
Originally Posted by fallstaff View Post
Just wanna say that this how the numbers seem to work out for me too. I am in the "sound financial footing / significant savings / sufficient income.......At that age, and really any time after the age-80 break even point, does that fairly modest extra income enhance my life any? It's not enough to get me into a higher class nursing home or make that kind of difference. And that's probably the only difference that would be meaningful at that age
Really? So a larger nest egg left behind is more important to you than having the income in retirement? Interesting. Unless your SS is only $1000/mo at 62, then you don’t think that an extra $30-40k a year income will buy you a better class nursing home? Have you actually used a SS calculator and seen what your guaranteed SS would be with even modest inflation by filing at 70 vs 62, at 85 -90? It’s an eye opener, especially for those with larger SS benefits. Sure if the difference is only 5-6k/yr, which with inflation in 30 years, then why even discuss it. But when you start talking $2-3000/mo DIFFERENCE, well then that is a substantial income difference in choosing CCL.
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 01:58 AM
 
71,769 posts, read 71,875,234 times
Reputation: 49321
Quote:
Originally Posted by Perryinva View Post
But what is all that money sitting in those accounts DOING for you? Do you just like to see big numbers? Will you lovingly caress your bank statement as you take your last breath and exclaim “Look everyone, I won!!” If leaving the most behind is more important than the income is while alive and ready to be used, well then, that is of course your choice, and a perfectly valid reason. I just don’t get it.
this is the part i will never understand .... if we had more to spend and enjoy we certainly would ...staring at a number is not what i worked and invested a lifetime to do
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 02:02 AM
 
71,769 posts, read 71,875,234 times
Reputation: 49321
Quote:
Originally Posted by Perryinva View Post
So based on your very logic, delayed filing makes more sense, since you have more to spend right from the beginning. Using your own parents as an example, if their savings was $200k less but their SS was more than double, how would it have changed their lives? There might be less left behind for YOU, but that shouldn’t be the deciding factor. As you stated, they were still putting money away because they couldn’t spend it, so there would be even MORE not being spent, AND they would have been able to spend more when younger. Still
Trying to see the reasoning here....
the draw should be the same in either case , whether you delay or not ... only the composition of that draw should really change . delaying would have it just go from 100% all your money to a greater percentage of ss later while gains on your portfolio are on a smaller balance from being spent down in order to delay .

taking it early has the same income being less your money early on and more your money later , but your gains are on a bigger portfolio balance since nothing was spent down laying out the early ss money . it just pretty much reverses the pattern .

unless you are not dealing with spending down invested assets or money that could be invested , delaying should give no difference in draw
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 03:59 AM
 
Location: Ypsilanti, MI
2,452 posts, read 3,673,115 times
Reputation: 4835
Work hard.
Save harder.
Retire as soon as you: a) can afford it; and b) have other meaningful activities with which to fill your time.
Reply With Quote Quick reply to this message
 
Old 06-11-2019, 05:45 AM
 
79,459 posts, read 33,688,908 times
Reputation: 15903
Quote:
Originally Posted by Perryinva View Post
But what is all that money sitting in those accounts DOING for you? Do you just like to see big numbers? Will you lovingly caress your bank statement as you take your last breath and exclaim “Look everyone, I won!!” If leaving the most behind is more important than the income is while alive and ready to be used, well then, that is of course your choice, and a perfectly valid reason. I just don’t get it.
I'm not sure what you are asking. I'm simply saying that I am getting out of what I am doing now. I'm 57. I can start drawing from my 401k and with the pension I will get and the wife's (she is retiring at the end of the year at 55) we can live OK.

Before I had my current job I sold cars. I kind of enjoyed that but with bills and kids it was stressful working on commission so I got out of that. I have a couple of friends from back when I sold cars now in management that have bugged me to come work for them. I'm considering it. I'll only be 58. If they can work me the hours I'm interested in working and I enjoy it, I will still be making more than enough to pay the bills (we owe nothing) and do the things I want to do so there is no reason to pull from the 401k. I'll be making my salary plus my pension and the wife's. (Mine is a partial as the company cut that off around 10 years ago and added to their 401k contribution)

Most of my hobbies are inexpensive. Not out of necessity, but out of choice. I have zero desire to travel the world. New cars are not important to me. The one dealer I'm considering is close enough to ride my electric bike to in good weather. I can come home for lunch..........because I want to, not because I have to eat peanut butter because I don't want to take from the 401k.

in 7 years when the wife turns 62 if she takes S.S. and I take it at 62, we will be making appx $6800 a month not including 401k. Where we live you can live just fine on that alone. If I enjoy selling cars again and delay, then a little more.

I'm not denying myself however *I decide* I want to go.
Reply With Quote 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.


Reply
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
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