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.
OK.. you made the choice about when to take SS.... what ever that is. Did ya get it right? or regret it? Learn something later and say.... dang I wish I knew that! or Maybe something like I screwed up and done good.... or shut it down went back to work and took SS later.
We can't answer for the dearly departed but we all know someone who's retirement went awry or who nailed it. My inspiration.....
“Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming "Wow! What a Ride!”
Hunter Thompson
I'm doing what I can gettin' there.... just sayin'
In order to say "we nailed it", we would have to be looking back from the vantage point of at least several years later, it seems to me. I took my Social Security at age 62, and now, nine years later, I can say it didn't really make much difference. But if I had it to do over again I would probably have waited another two or three years to get a slightly larger benefit.
That has nothing to do with the size of the benefit per se, but rather with the fact that when I went on Medicare at age 65, the monthly Medicare Part B premium was greater than the monthly SS benefit. So the benefit was suspended and they billed me for the difference. I didn't care for the uncertainty of how I was supposed to pay that difference, and for the inability of SS to tell me what I was supposed to do (before I knew to just sit back, relax, and wait for the billing), although it was not any big deal in the end, really.
I started SS at age 67 in order to qualify for a mortgage. I think it makes sense to wait until age 70 if you can do without the money. Sure you might die you and the government wins, but if you live postponing SS will give you a much better income in your old age. Where else can you get a 100% guaranteed 8% ROI? On top of that compounded growth you will get COL increases for life. Again it depends on how long you live but the effective rate of increase is much higher than 8% due to the COL increases.
I started SS at age 67 in order to qualify for a mortgage. I think it makes sense to wait until age 70 if you can do without the money. Sure you might die you and the government wins, but if you live postponing SS will give you a much better income in your old age. Where else can you get a 100% guaranteed 8% ROI? On top of that compounded growth you will get COL increases for life. Again it depends on how long you live but the effective rate of increase is much higher than 8% due to the COL increases.
As both Mathjak and I have posted repeatedly, it doesn't really amount to an 8% rate of interest when you account for all the money you did not receive while waiting.
As both Mathjak and I have posted repeatedly, it doesn't really amount to an 8% rate of interest when you account for all the money you did not receive while waiting.
Not only that, which is considerable, again that 8% does not start until FRA to age 70. From 62 to FRA is a much smaller increase.
Back to post #2 how in the world is Medicare Part B larger than an entire SS benefit check?
I recently went to a Social Security seminar and it was stressed to wait until FRA, if you can.
Again, it's a YMMV situation and everyone's needs vary.
I will dig out my material later and highlight the salient points.
Some good info there that I am sure will be debated here.
Personally, I plan to "try" to wait until age 66.
One never knows, though.
Not only that, which is considerable, again that 8% does not start until FRA to age 70. From 62 to FRA is a much smaller increase.
Back to post #2 how in the world is Medicare Part B larger than an entire SS benefit check?
Easy. Not everyone gets a substantial SS check, as it depends on one's earnings history as to the wages and earnings which fall under Social Security. Not all wages and earnings fall under SS. My SS monthly benefit at the beginning was $103.
In addition, there are five tiers of Medicare Part B premium amounts, depending on one's "modified adjusted gross income" on the previous year's IRS income tax filing. The tipping point between the lowest premium and the next one up is $85,000 in income for a single taxpayer (double that for married filing jointly). That one year, for the only time in my low-earning life, I had more than $85,000 because of cashing out my investment in an apartment house limited partnership.
2 days ago a SS expert on TV said that the easiest way to decide when to take SS is to ask yourself a question, if you need SS for your retirement then wait as long as you can, if you don't need SS then take it as soon as you can. The more I have thought about it the more I think, it is about the best way to decide.
In a few months I will be 62 and I have no hesitation that this is the best decision.
When these threads come up, I think it is important to remember that if you do the math and come up with the break even point (where total payments to that date would be equal if you took the early or late date of the ages you are comparing) and then look at life expectancy purely on averages, the most likely 5 year period that you will die in is the one after break even. The second most likely period, with a slightly smaller chance, is the one before it. All the other periods have substantially lower odds. So the odds are slightly good that you will come out slightly ahead by waiting. There is no guarantee. IMO, if you are able to retire the way you would like to when you want to, then you nailed it.
As both Mathjak and I have posted repeatedly, it doesn't really amount to an 8% rate of interest when you account for all the money you did not receive while waiting.
yep , and if spending invested assets down to delay along with the checks not taken , just to get to zero can take 22 years. longer if you get increased more on mediicare because you delayed or gave up spousal increases until you filed like we did.
actually your best possible real life roi if delaying counting the return on a balanced portfolio spent down delaying and checks not taken would be a 6% roi first kicking in 33 years later . if you started at 70 you would be 103 and just seeing 6%.
that 6-8% gain by waiting is not really going to be your roi .
Last edited by mathjak107; 05-23-2015 at 06:52 AM..
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 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.
