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Old 08-24-2019, 12:58 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
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Ref post #89^fundamentally i am against welfare and discourage the state in assuming LTC costs. Breeds malfeasance and moral turpitude
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Old 08-24-2019, 01:36 PM
 
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Originally Posted by leastprime View Post
Ref post #89^fundamentally i am against welfare and discourage the state in assuming LTC costs. Breeds malfeasance and moral turpitude
We pay a good price for that privilege....these plans basically run 1 years costs in a snf in tomorrow’s estimated dollars.

For full asset protection we pay 8k a year in premium for both of us .. New York State gives us a 1600 dollar tax credit for having the plan ... so I won’t exactly call that welfare. In fact they are taking in more than they are paying out with these programs ....so welfare it ain’t for those with partnership plans

Just about every state offers some form of partnership plan now ....but not all offer full asset and income protection
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Old 08-24-2019, 03:35 PM
 
Location: Grove City, Ohio
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80% of my projected retirement income will come from social security or the federal government with the remaining 20% coming from state pensions and state benefits.

We have some money saved, more than $50k but less than $100k, but we do not look at that as an income source it is for emergencies only.
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Old 08-24-2019, 04:32 PM
 
2 posts, read 326 times
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Quote:
Originally Posted by Mircea View Post
Recessions can affect retirees who apply for benefits.

The people who filed in 2011 got indexed to 2009 and they lost $50-$300/month in Social Security benefits.

You can apply for retirement benefits during a recession, because your wages are index two year prior to the recession. You can also apply the year after the recession ends.

It's that 2nd year after that you have to be wary.

Recessions don't always result in job losses. You've had a number of recessions where job losses were a few 100,000 and not Millions. Usually if Capital reallocation is the cause of the recession then you lose a lot of jobs, like in the Millions. That was your problem in 2008. You had Capital reallocation within the US, plus Capital flight, where Capital is actually leaving the US (headed to Southeast Asia) that caused Millions of job losses, and you can't pay your mortgage if you don't have a job, or if you have a job that pays less than the job you lost.

A liquidity crisis usually doesn't cause massive job losses, either, unless it's economy-wide or industry-wide.

Anyway, if job losses are severe enough to impact the Wage Index, you may want to apply for Social Security a year earlier than you planned, or delay by a year, so you don't lose money.


Just keep that in mind.

I just wanted to clarify the application of Average Wage Indexing You really can't manipulate which year will be used for indexing as it is based on the year that the person is first eligible for benefits not the date of application. For retirement, first eligible age is 62, so people born in 1949 will use the wage indexing series from 2009. As you indicated, there is a 2 year lag so everyone's wages from age 60 on don't get the benefit of wage indexing. Any such wages are basically used in the calculation at face value.

PIA is initially calculated at age 62 using the indexed earnings and bend points from the year the retiree turned 62. After 62, PIA is adjusted annually with COLA like all Social Security benefits. (Additionally, PIA is recalculated annually if the person continues to work and the wages are higher than one of the 35 years used in the calculation. That calculation usually takes place later in the year.)

Those 62 year olds in 2011 are turning 70 this year. When their benefit is calculated, it still uses the 2009 wage indexing series and applies COLA from 2012 to this year. (Delayed retirement credits or early retirement reductions are/were applied based on actual age at application. The actual calculation and rounding has a specific sequence outlined on the SSA website.)

Just didn't want folks to think they have to jump through hoops to evaluate what wages are doing. They can only affect their benefits positively by either delaying or continuing to work.
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Old 08-24-2019, 04:33 PM
 
Location: Myrtle Creek, Oregon
12,530 posts, read 12,711,204 times
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Quote:
Originally Posted by hikernut View Post
Of course it's easy to quote numbers today, long after the fact, and say that it all worked out. I cannot envision the despair that must have permeated the lives of people during that era. Most did not own shares, but for the ones that were in the market... they saw a bear lasting nearly four years with the broad averages losing about 90% of peak value. If something like that happened today I expect there are vanishingly few who would stay the course.
It was a different world, before FDIC. My grandparents lost $50,000 when the bank failed (a fortune in 1932), lost their farm, and ended up refugees. Their grandkids ended up well to do, but it took decades to recover and the grandparents never did.
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Old 08-25-2019, 06:29 PM
 
Location: The South
5,375 posts, read 3,720,424 times
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Quote:
Originally Posted by Giesela View Post
I was thinking about the news and worry about an upcoming recession.
This thread is NOT ABOUT RECESSION COMING SPECULATION.

Theoretically, if you have done what experts recommend, own your home, car, found some sort of monthly means to cover monthly expenses (pension, investments, rentals whatever).

Then recessions don't affect those retirees? Well depending on investments I guess.

Was anyone retired during the last one?

Anyone curtailing plans or putting them off to see if this next one materializes? Coming up with a recession plan, if you think it will affect you? For example if you had been thinking of selling and moving south, are you going to do it sooner now vs waiting in case the real estate market cools?
I retired in 1994 so whatever we had, I have experienced. I do have a company pension and SS, but overall I just ride out the bad times. The market has always recovered and life goes on. However, I still worry.
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Old 08-25-2019, 07:39 PM
 
5 posts, read 2,054 times
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Quote:
Originally Posted by mathjak107 View Post
This is the most reasonable answer to the question
I think that is a good point but maybe does not fit my situation. It will work out better if housing prices should dip. I plan to relocate and replace my house with another one of equal value. The dip will reduce my capital gain taxes as I have exceeded the tax-free limit. I will also have lower property taxes.
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Old 08-26-2019, 02:43 AM
 
73,066 posts, read 72,858,103 times
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Quote:
Originally Posted by Med60 View Post
I think that is a good point but maybe does not fit my situation. It will work out better if housing prices should dip. I plan to relocate and replace my house with another one of equal value. The dip will reduce my capital gain taxes as I have exceeded the tax-free limit. I will also have lower property taxes.
i would never let the tax tail wag the tax dog ... give me more profit and i will gladly pay the tax ..in fact give the amount over the limit to me . i will gladly give you the tax money from it back .
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Old 08-26-2019, 02:44 AM
 
73,066 posts, read 72,858,103 times
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Originally Posted by Med60 View Post
. I will also have lower property taxes.
valuations eventually get recessed once prices bounce back ...sorry but both this thought and the tax one make little sense
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Old 08-26-2019, 04:14 AM
 
Location: R.I.
1,047 posts, read 636,340 times
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Quote:
Originally Posted by Gallina57 View Post

PIA is initially calculated at age 62 using the indexed earnings and bend points from the year the retiree turned 62. After 62, PIA is adjusted annually with COLA like all Social Security benefits. (Additionally, PIA is recalculated annually if the person continues to work and the wages are higher than one of the 35 years used in the calculation. That calculation usually takes place later in the year.

I turned 62 this past February 2019 and my 2018 earnings were several hundred dollars higher than my 2017 which I guess that attributes to the $1 increase I now see in my current FRA monthly estimate. I think I am now pretty much done working off a few very low earning years, but it will be curious to see after getting a 4.4%/$4,700 raise earlier this year how much that increase in income will impact my estimated FRA benefit but will have to wait until after I file my taxes next year to find that info out.
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