When should I take SS? (tax, calculator, cost, military)
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Yeah, I made my purchase decision in my 40's which does not negate me from making a different decision down the road. I live in an upper middle-class area (one of the best neighborhoods in Oregon) and I feel perfectly safe. My neighbor and friend has enough guns and ammo to arm our entire block. We're fine here. I am not opposed to being in your situation at some point (with less maintenance). Besides my neighbors I have enjoyed a territorial view and 25 vacant rolling and treed acres out my back yard. It's drop dead gorgeous here.
It sounds really beautiful! I’m almost a decade older than you too. Although my friend’s mom is 88 and lives in a house in a gated community and doesn’t want to downsize. She hires the outside work and we have been trying to convince her to spend money on house cleaning instead of doing it herself. There’s really no right or wrong way to age.
It sounds really beautiful! I’m almost a decade older than you too. Although my friend’s mom is 88 and lives in a house in a gated community and doesn’t want to downsize. She hires the outside work and we have been trying to convince her to spend money on house cleaning instead of doing it herself. There’s really no right or wrong way to age.
If money were no object there is a 55+ about a mile from my house all mid-90's one story houses with a golf course. All the landscaping is beautiful and the houses are all very well maintained. I like a mix of ages though because it's refreshing.
I wish I were a decade younger than you, but, I think it's only 7ish years. Somehow most (but not all) of my friends are about a decade older. Also, friends are a decade or almost two decades younger. It's more the psychological matching that prevails.
I fully plan on taking SS at 62 if it's still around. I definitely don't want to work past that age...I may or may not live the full life expectancy, but I want to enjoy more of my years.
Not waiting to pay off a house either because the house is gonna get sold when I retire. Fully intend to rent and live on the coast...or maybe somewhere else if the kids move out of Texas. Between my husband and I, we could swing the rents and we'd no longer have to deal with the high property taxes and maintenance of a half acre lot.
It sure is nice to have a pension. That went the way of the dodo when I started.
I'm still considering taking it at 67 or 70. I'm only 59 1/2 right now, and its likely that there will be changes (lower and/or taxed more) than what my current SS projections are by the time I start collecting. The only reason to wait is for the increased survivor benefit. My current SS estimate at 67 is $3,148 and $4,248 at 70. Eventually I'll also get a FERS pension $1,300 - $1,500.
I plan to have the house paid off in 6 years and retire. Average monthly cost (not counting the mortgage) is roughly $1,350 for utilities, HOA, streaming services, phones, pest control, alarm monitoring etc. Does not include groceries.
My wife is 4 years younger than me, and she's always been a low earner. Right now her net monthly income is only $2,200. That's $860 from her FERS pension and $1,340 from SSDI.
I've already set up the Survivor Benefit Plan for my Military pension which currently is a little over $2800. As long as I live at least another 4 1/2 years she should also get Dependency and Indemnity Compensation (DIC) from the VA since I'm 100% P&T. The current amount is $1613 plus she should also get another $342 for the 8 year provision. She may also qualify for around $600 more from the VA depending on her health and what if any help she may need.
The gross would be $4,755 - $5,355.
And all the income above has COLAs.
Now that I've written it down like this, I'm leaning towards taking SS once the house is paid off which would be 65 1/2 or so.
What do you think?
I think when you first posted this it was hard to follow to understand how much money was there. So, if I look more closely --->
OP is Alive
Wife FERS 860 10,320
Wife SSDI 1,340 16,080
Military Pension 5,100 61,200
FERS 1,500 18,000
SS at 67 3,148 37,776
143,376
OP not living
Survivor SS 3,148 37,776
Survivor
Military Pension 2,800 33,600
DIC 1,613 19,356
90,732
Is this close?
I think these amounts are hard to argue with; but, I would still beef up savings.
I think when you first posted this it was hard to follow to understand how much money was there. So, if I look more closely --->
OP is Alive
Wife FERS 860 10,320
Wife SSDI 1,340 16,080
Military Pension 5,100 61,200
FERS 1,500 18,000
SS at 67 3,148 37,776
143,376
OP not living
Survivor SS 3,148 37,776
Survivor
Military Pension 2,800 33,600
DIC 1,613 19,356
90,732
Is this close?
I think these amounts are hard to argue with; but, I would still beef up savings.
That's pretty much what I came up with, except $3,148 is my age 66 SS (not sure how I screwed that up). Age 67 is $3,389. She still keeps her FERS pension. Plus once she's FRA her FERS pension increase. Now that she's on SSDI, her pension is offset. Before SSDI her gross was $1,885. Right now it's $994. By FRA it should over $2,000. I will not take survivor from my FERS pension (I figure my military retirement and VA disability should be enough.
My ballpark estimate is that she'll gross over $100K just from survivor benefits.
That's pretty much what I came up with, except $3,148 is my age 66 SS (not sure how I screwed that up). Age 67 is $3,389. She still keeps her FERS pension. Plus once she's FRA her FERS pension increase. Now that she's on SSDI, her pension is offset. Before SSDI her gross was $1,885. Right now it's $994. By FRA it should over $2,000. I will not take survivor from my FERS pension (I figure my military retirement and VA disability should be enough.
My ballpark estimate is that she'll gross over $100K just from survivor benefits.
It certainly sounds like enough with a paid off house. But, you'll still need to save lump sum amounts for certain unforeseen expenses (like a roof, a furnace, a car, etc.). I would get more in the TSP and also Roth TSP might be the best way to save for the unforeseen big expenses (it will need to be vested for five years before you can make withdrawals.
It certainly sounds like enough with a paid off house. But, you'll still need to save lump sum amounts for certain unforeseen expenses (like a roof, a furnace, a car, etc.). I would get more in the TSP and also Roth TSP might be the best way to save for the unforeseen big expenses (it will need to be vested for five years before you can make withdrawals.
I started contributing to a Roth TSP in November, so I'll vest in it by the time I retire.
I just finished crunching some numbers. I'm currently 59 (will be 60 in July).
Our current net monthly income is just over $16,000. Assuming 2.5% COLAs, net monthly income will be just under $19,000 at age 65 1/2 when I plan to retire. Also at that point the house will be payed off.
I don't plan to take SS right away. Once I'm retired I'll start my FERS pension (guesstimated $1,650). My net income drops to about $14,500. If I start SS at age 67 net income goes back up to just over $18,000.
However, once the house is paid off and my FERS pension starts, the drop in net income is roughly the same as what I'm paying on the mortgage.
So the bottom line is once I'm retired I probably won't need to supplement my income with TSP withdrawals unless there's something I want to splurge on. That also means that I can wait to start SS at age 70.
I just finished crunching some numbers. I'm currently 59 (will be 60 in July).
Our current net monthly income is just over $16,000. Assuming 2.5% COLAs, net monthly income will be just under $19,000 at age 65 1/2 when I plan to retire. Also at that point the house will be payed off.
I don't plan to take SS right away. Once I'm retired I'll start my FERS pension (guesstimated $1,650). My net income drops to about $14,500. If I start SS at age 67 net income goes back up to just over $18,000.
However, once the house is paid off and my FERS pension starts, the drop in net income is roughly the same as what I'm paying on the mortgage.
So the bottom line is once I'm retired I probably won't need to supplement my income with TSP withdrawals unless there's something I want to splurge on. That also means that I can wait to start SS at age 70.
It will be a struggle, but you should be ok.
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Somehow most (but not all) of my friends are about a decade older. Also, friends are a decade or almost two decades younger. It's more the psychological matching that prevails.
