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while very few actually took advantage of or even knew about file and suspend options , the media was promoting filing later and taking advantage of file and suspend and restricted application .. delaying started to interest more and more and so to avoid any more pressure on the ss funds they ended file and suspend and restricted application.
you could count on most tv shows and articles playing up those two options before they were terminated promoting at least delaying to fra for one of a couple .
Now the one I would have taken advantage of was taking at 62..paying it all back right before FRA and then taking at FRA. All the other changes had no impact on me because I didn't meet the date of birth requirement. But that change about paying it back...
Now the one I would have taken advantage of was taking at 62..paying it all back right before FRA and then taking at FRA. All the other changes had no impact on me because I didn't meet the date of birth requirement. But that change about paying it back...
they had to get rid of that option ... there was a very bad loophole that they never realized until some very smart researchers caught on to it .....
when you paid the ss back , if your ss was taxed you were able to take a negative income deduction for the amount .
typically the amount was so large you paid back after years that it actually left you with negative income .
you typically cant do much with negative income so it died on the vine unused ...some smart researchers realized you could use that negative income for free roth conversions .
just apply that negative income to the roths and use it all up ...
well that was the end of that as those in the know did just that .
Thanks again everyone for the responses. It sounds to me like it makes more sense to take SSI earlier rather than tap your retirement savings. I will let my friend know. Jay
That is how it works out for me whenever I use the well-known retirement calculators. Yes, in the long long run, if I live to that time, the total nominal payout from SS is greater if I wait. But, all along that way until that time, I am spending my own money. So, as the saying goes "it's six of one thing and half a dozen of the other." If I take it earlier I get a smaller check and perhaps less total payout but I'm sitting on a bigger pile of money I already have. And if I don't need the SS then I can simply stockpile it thus increasing the time it takes to break even on 62 vs later.
And even in those scenarios wherein I end up X-dollars ahead at the end of my lifespan by waiting to collect....? The difference is not that much. It's not the kind of money that will make a materiel difference in your life. And, at that time you're dead. Because that's the only time you'll know exactly how much ahead you were by waiting
the only time delaying really pays off big is if you decide to work longer ... then that in itself is the silver bullet to an under funded retirement .
by deciding to work longer .
your ss increases .
you are not spending down invested assets
you may still be contributing to retirement savings .
you have 8 years of life left to support compared to 62 ..
you are still contributing fica and if at peak pay may be bouncing out lower inflation adjusted years .
that can be like having as much as 800k more in savings .
yeah , not everyone wants to , or can work longer , but it is what it is , and for a retirement in poor shape it can make it a whole lot better .
the only time delaying really pays off big is if you decide to work longer ... then that in itself is the silver bullet to an under funded retirement .
by deciding to work longer .
your ss increases .
you are not spending down invested assets
you may still be contributing to retirement savings .
you have 8 years of life left to support compared to 62 ..
that can be like having as much as 800k more in savings .
yeah , not everyone wants to , or can work longer , but it is what it is , and for a retirement in poor shape it can make it a whole lot better .
I thinks that's basically what it's for. One last Hail Mary" pass attempt to an adequately funded retirement. Keep working. Keep piecing it together. Keep some air in the ball till 70, or as close as you can get
For everyone else it's, as this thread had revealed, a very short trip to "The Point of Diminishing Returns" by putting it off.
my wife took it at 62 and me at 65 ... i have no regrets ... although i was big on delaying , when those assets were being spent during a bull market that was the tide changer ...
so i filed at 65 .. i work one day and earn to much to have taken it sooner or i likely would have ....
actually spending down those dollars in real time compared to hypothetically planning made all the difference to me
It is a no brainier for me, 62 and I am taking the cash thank you very much. I got some fishing, drinking and dabbing to do. Mix in a little rving and I am liking the retirement lifestyle. You never know when you will drop dead. Both of my parents died before 70 so........I am not wasting anytime I am going to get some fishing,drinking oh yeah lots of dabbing in before I drop dead. So far so good. Besides money does not make you happy, if you have not figured that out by now you might as well keep on working.
my wife took it at 62 and me at 65 ... i have no regrets ... although i was big on delaying , when those assets were being spent during a bull market that was the tide changer ...
so i filed at 65 .. i work one day and earn to much to have taken it sooner or i likely would have ....
actually spending down those dollars in real time compared to hypothetically planning made all the difference to me
Yep it’s one thing to plan and another taking it out, imagine if it was a Bear Market and you had to take out large amounts to get to FRA or 70 that would not be an enjoyable retirement lol
Yep it’s one thing to plan and another taking it out, imagine if it was a Bear Market and you had to take out large amounts to get to FRA or 70 that would not be an enjoyable retirement lol
A 50/50 mix would have more then a decade of cash and bonds so selling equities in a down market is not going to happen. You may even be buying equities when rebalancing
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