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View Poll Results: When did you (or when do you plan to) start taking Social Security benefits?
Age 62 66 55.00%
Age 63 2 1.67%
Age 64 3 2.50%
Age 65 10 8.33%
Age 66 19 15.83%
Age 67 or older 20 16.67%
Voters: 120. You may not vote on this poll

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Old 06-21-2015, 03:08 PM
 
Location: RVA
2,164 posts, read 1,264,598 times
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Well, yes, delaying for a larger SS has significant tax savings, as you have a larger percentage of yournincome that has only 85% of it taxed. Thats as much as an extra $4k tax free income, or $1000 extra spendable.
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Old 06-21-2015, 05:28 PM
 
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maybe , the rmd's coupled with that social security check that is 79% larger may throw it right in to another marginal tax bracket .
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Old 06-21-2015, 05:56 PM
 
Location: Great State of Texas
86,093 posts, read 72,469,891 times
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Quote:
Originally Posted by mathjak107 View Post
maybe , the rmd's coupled with that social security check that is 79% larger may throw it right in to another marginal tax bracket .
Uncle Sam will always get his share..either now or later.

As they say..you cannot escape death and taxes
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Old 06-21-2015, 06:00 PM
 
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Correct but his share is whatever you legally can figure out you have to pay.

There is really no such thing as his share. There only is what you can reduce your fair share down to
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Old 06-21-2015, 06:54 PM
 
10,812 posts, read 8,056,502 times
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Quote:
Originally Posted by mathjak107 View Post
maybe , the rmd's coupled with that social security check that is 79% larger may throw it right in to another marginal tax bracket .
Between our pensions, deferred salary payout, delayed SS benefits, RMD's, and lack of tax deductions, we'll probably play leapfrog over the tax brackets throughout our 70s.
If our health holds out, we'll have more $ coming in and fewer expenses than we ever did during our working years.
If our health doesn't hold out, that money will be much needed.

Either way, we'll give Uncle Sam his share and try to spend the rest!
No pity party planned
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Old 06-21-2015, 07:22 PM
 
Location: RVA
2,164 posts, read 1,264,598 times
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Well, yes, that does assume that your RMDs are not so large that they far exceed what you want to take out. Like we discussed, it always depends on what your forced unearned income is relative to your desired spending level. If I end up with so much income that it throws me in to the 28 or 33% bracket (where Ive never been in my whole life), then I'll happily admit I messed up, LOL! So far, Firecalc and RIP show me 100% success.
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Old 06-22-2015, 12:28 AM
 
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I have several coworkers who are still working -- in their late 60s and early 70s -- who are taking their Soc Sec. benefit.
At least two, I know, (one 66, one 73) don't need the money.

The 73-year-old, is collecting a pension from a previous job, a 6-figure salary from his current job -- AND his Soc Sec.
I haven't asked them yet WHEN they started taking the benefit. I'll have to ask him about that.

(actually he just might need the money....he's a big spender who has given THREE grand kids cars, paid for equestrian lessons for one of them, just remodeled his 5K square foot home, and paid for a dozen people to go to Hawaii (flights, tours, rented beach house, shuttle vans, and more) for his 50th wedding anniversary)
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Old 06-22-2015, 07:31 AM
 
Location: Columbia SC
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We retired at age 62. One of the deciding factors was a retirement package that my wife was offered by a state government. It included health insurance for the both of us until Medicare kicked in (age 65) then the state plan became our supplemental plan.

We are in our early 70's and living quite well.
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Old 06-22-2015, 11:16 AM
 
Location: Florida
4,356 posts, read 3,692,049 times
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Quote:
Originally Posted by rdflk View Post
What I haven't decided yet -- and I certainly have time....is....IF I choose to spend down MY assets in order to delay SS....just HOW FAR DOWN am I willing to go. What's my comfort level on how low I'm willing to take MY money. A higher Soc Sec is fine and dandy....but there's nothing like having YOUR OWN money.

I know each person's situation is different...but how low would you take your IRA or 401K.403B/SEP, etc.? Or would you not spend down at all, to delay and get a bigger SS check......500K, 400K, 300K, 200K?
Let assume you are going to live for a number of years. Thus you will pass the break even point for delaying
SS.

Then I would spend down from investments what ever the postponed SS payments would be. My logic is I am spending non SS money now and will replace it with SS money in the future. Thus in the future, less market risk with SS than with investments.

This does not answer your how much left question so I am guessing if I had at least 50% of my investments left then I would be ok. But then I would look at potential medical expenses, and other surprises and probably say $500,000 min. Hard question to answer in the abstract.

By the way if the market is down when you start retirement you are probably wise to hold on to your investments so you benefit when the market goes up. Thus start taking SS.

For example your have 100 shares of stock at $100 per share due to a poor market. You sell and you get $10,000. But if you held on and the stock went to $200 you would only have to sell 50 shares to get the $10,000.


Also remember if you delay you can always change your mind and start collecting.
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Old 06-22-2015, 12:58 PM
 
Location: NYC
2,898 posts, read 1,582,286 times
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Well theoretically if one has a 50/50 or 60/40 mix in assets & those assets were making an average of about 6%/year, if you could afford to live on 5-6% of that you might be able to maintain roughly the same balance until you decide to apply for SS at FRA or 70yo & then cut back to 4% withdrawals.
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