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you need better than a 6% real return which is after inflation from a balanced portfolio to beat ss by age 90 . that is pretty tough today with rates this low starting out .
You'd also need to make it to age 90
See, you guys with the charts do have your facts but we are dealing with variables that can't be known. I decided to wait till fra which is 66 for me. I just got my first direct deposit and I'm going to continue to work and put all the SS money and then some in our acct at Vanguard each month
When I hit 70, I'll have close to 100k in the account and should I die my wife and kids will get that money. If I live long enough to actually have done better had I waited another four years, well, I don't think I'll miss it at 90 years old.
My wife has a higher SS record than I do btw and is quite a bit younger so her earnings will enable us to continue to put a good chunk away each month for a long time to come.
Dave
even at 85 which is almost a given for one person in a couple the roi rivals equity's better outcomes .
ss is inflation proof as well interest rate and market proof so odds are much better betting on longevity vs market outcomes if a couple unless sickly . ideally betting on both is the best balance .
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For those of you who want to continue working till FRA or even 70 because you are making 6 figures and still enjoy your job--wonderful. Some people are not so blessed. I know one man who worked a blue collar physically demanding job in construction. He was struggling to do the 14 hour days in 90+ degree heat in the summer on black top. He couldn't physically handle the job anymore and retired at 62. He did not have gobs of investments to use and yes, chose to go on SS. Everyone's situation is different.
I tend to agree with beer belly more than the people who are pointing out the money differences because right now I'm suffering from very poor quality of life. My job is killing me. Unlike what other people have said, the monthly amount is not the biggest factor to me. It's not enough incentive to work another 8 years. Also I don't have a spouse. If I die at age 75, for example, my beneficiaries are not going to see one penny of SS. They will only get whatever liquid assets are left. However, I fully agree that it makes sense to wait to draw SS, if possible, and use the taxable investments first, if possible. Thus cutting down on the RMDs later.
I sense a lot of people on this Retirement forum have underlying issues about retirement and seem to enjoy cutting people down who do want to retire. We have a workaholic culture. that is one reason why I'm being forced to work like a machine or robot, no quality of life. People who don't have to work like this do not realize the crucial importance of early retirement for people like us.
I'll be pre-retiring next February (2018)...at last! and retiring a few months hence at 63. Fortunately I inherited a lump sum of money (about 350 K) from my old man who "croaked" last year, that'll help. As the big R day is drawing closer, I'm getting impatient now. So many things to do, freedom at last!
I was quite set on drawing ss at 62. As a single person, I don't have the strategic options of a married couple. However, this forum has gotten me thinking about RMD and future tax hits. I may rethink my plan. One could give it a go without ss, and if it isn't working out, go ahead and start collecting at 63, 64 or 65.....maybe playing both sides of the coin a bit. It isn't necessarily either/or. I appreciate everyone sharing their experiences and opinions as it has given me food for thought.
For those of you who want to continue working till FRA or even 70 because you are making 6 figures and still enjoy your job--wonderful. Some people are not so blessed..........Everyone's situation is different.
I tend to agree with beer belly more than the people who are pointing out the money differences because right now I'm suffering from very poor quality of life. My job is killing me...........However, I fully agree that it makes sense to wait to draw SS, if possible, and use the taxable investments first, if possible......
I sense a lot of people on this Retirement forum have underlying issues about retirement and seem to enjoy cutting people down who do want to retire. We have a workaholic culture. that is one reason why I'm being forced to work like a machine or robot, no quality of life. People who don't have to work like this do not realize the crucial importance of early retirement for people like us.
Show me a post where anyone on here was cutting anyone down that wanted to retire early? At MOST, people are simply pointing out that what may seem like an adequate amount at 62, be comes an amount that gets further and further behind as one ages, such that the end result is at an age where is it clearly impossible to get a job and increase ones income, then one is broke and suffering. If you are forced to work like a robot with no quality of life, then that is the result of choices you made during your life. At a late age before retirement it is pretty difficult to recover from those choices. You are the only one that can weight whether the pay you get compensates you to live like that or whether a different job that pays less, but gives you a life, is worth staying at longer to compensate. Life can be cruel, and no one here enjoys putting anyone down that life has dealt a lousy hand to. But I know WAY more people that cry "Not fair" because of the results of their own choices, than people that worked hard to get ahead and failed. Naturally, there are tons of examples where people seem to have had everything practically handed to them, and I know a few. Envy is inevitable. There is absolutely no guarantee of an easy retirement. What was reasonably possible just 20 years ago, is significantly more difficult today. Anyone that judges another for their choices is pushing a rope. If accomplishes nothing. Advice is just that, advice. For some reason, people that can not delay filing, either due to health, finances, or whatever. still get in a snit when reading advice on considering the benefits if delaying. The advice is geared towards those that DO have a choice, by working longer or using some savings to delay, but insist it makes no difference or is smarter to file early. No one has ever retired early and went from just barely making it to easy street as they got older, unless they won a lottery. You can't (or rather shouldn't) count on dying earlier to solve your financial woes. Rare is the cognitive individual that at each added year of life, honestly wishes they would die as soon as their money ran out. Plenty SAY that at a younger age, yet when the time comes, they want to live another year.
Everyone's job or career is a result of their choices. No one is conscripted to slavery or a job that is killing them. How is that a cut to people that want to retire early? Common sense as well as plain old math would tell one that the less one makes, the harder it is to retire early. That is not a cut. If anyone could easily retire early and made low pay most of their life, then EVERYONE would. Again, reality, not insults.
OP has a point that may work for his situation because there are variables. calculations are only part of the decision process
Single or married
Spouse to be taken care of or just self
in physically demanding work or other health factors
will SS be sole income
will it be sufficient to sustain comfortable life over the long term
will it cover living expenses today and as they increase including medical
is the house paid off
would it be better to draw down IRA and pay taxes now and would it impact SS taxed amount
etc
People I know who have health issues or demanding work where they can barely get through work physically and have a paid off house with no mortgage and no bills do OK retiring at 62 with SS and nothing else.
Some I know have sufficient income from other sources or savings and investments so at whatever age they take SS, it is front pocket money anyway.
OP here. I was just looking to be sure that the way I was calculating the difference in SS Benefit was correct, although understanding the amounts at different stages are not cast in stone. We do have other sources of income to draw on, now whether or not it is sufficient, we'll have to look at in 5 years (62). There are some health issues that are not rearing thier ugly head at this time, but the Doctors are watching. The issue at the moment is more of a physical issue from injuries caused on the job (Workmans Comp), and how long I can continue and still deal with the pain and discomfort, as I stated, I love my job, and wish to continue till FRA, and I am just looking at the "what if I can't" scenario. I have learned a lot from all the responses, and have found that there are more things to consider, and will keep them in mind as the years go on. Please do not argue as to why people make the choices they do, as everyone has different reasons and live different lifestyles, I myself, lead a simple life and do not expect to go crazy with spending and travel in retirement.....just looking to spend some time with the Wife and enjoy each other and use our time as our own. Beer Belly out.....(wish I had a Mic to drop)
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