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For you old guys and SS

DILLIGAF

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What is your theory on taking SS?

As soon as eligible at 62? Wait till maxed out at 70?

Some say to take it as soon as possible as it won't be around forever....Get it while you can

Some say don't take it if you don't need it until maxed out to increase the payout....More money monthly

Just trying to get a handle on what I might do when that time comes for me.

I know what my financial guy will say.....looking for real life takes
 

SoCalDave

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I'm waiting until I'm 66y 8m to get my full benefits. That's 4 more years for me.
 

Gelcoater

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What is your theory on taking SS?

As soon as eligible at 62? Wait till maxed out at 70?

Some say to take it as soon as possible as it won't be around forever....Get it while you can

Some say don't take it if you don't need it until maxed out to increase the payout....More money monthly

Just trying to get a handle on what I might do when that time comes for me.

I know what my financial guy will say.....looking for real life takes
Wait till it’s enough to cover the monthly nut on your new Corvette👍
 

FreeBird236

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Started mine at 62. At one time I had it calculated, but I believe it takes aprox. 11 years to hit the break even point for just 65 or 66 can't remember for sure, definitely wasn't 70. I'd guess most men that wait until 70 will never catch up.
 

2Driver

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Started mine at 62. At one time I had it calculated, but I believe it takes aprox. 11 years to hit the break even point for just 65 or 66 can't remember for sure, definitely wasn't 70. I'd guess most men that wait until 70 will never catch up.

Yep. The information I have is 14 years to break even. Take it at 62. Take it now and let your tax free accounts like IRAs and 401ks continue to earn.

The only reason to wait would be if you won't have other income sources of significance. In which case, you need to stay working to build up the monthly amount.

I'd rather spend it on dive trips to BVI now vs on Depends later.
 
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monkeyswrench

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I'm a youngster, 44. Can't say pros or cons by personal experience. Here's what I can say, both my parents "planned" on taking it later in life.
F'k planning for the future in that respect. If you can, take it and put it away while it's your choice.
 

Universal Elements

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Yep. The information I have is 14 years to break even. Take it at 62. Take it now and let your tax free accounts like IRAs and 401ks continue to earn.

The only reason to wait would be if you won't have other income sources of significance. In which case, you need to stay working to build up the monthly amount.

I'd rather spend it on dive trips to BVI now vs on Depends later.

This and take it while it’s still available (funded). Never know what the future holds.
 

That Guy

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It's a very complicated decision based on your assets, future earnings, tax situation, health/genetics/family history, etc. I had both my financial planner and tax guy assess what was best for us and based on our current situation, we're waiting until at least 67 and possibly 70.

You'll get a bunch of experts (who are coincidentally experts on epidemiology, gun laws and vaccines 😅 ) telling you all kinds of things but each situation is different. My advice...get several opinions from people who know your individual situation and have a background in taxes, financial planning, etc. Good luck!
 

Flatsix66

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Waiting is a guaranteed 8% return/increase each year, most would die to be assured 8% on their investments. If you can draw on other savings first you should and wait till 70. Also, consider you may need to pay taxes on SS or could increase your tax bracket which could impact IRA conversions to Roth if you want to do that.
 

GOTTBoat

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I retired two years ago at 58 and plan on taking SS at 62. I looked at how long it takes to make up the delayed income with the larger amount later and I’m comfortable taking it ASAP. I haven’t had to touch 401/457 (yet) and will let that money keep working for me until I need it. Every situation is different and if someone is going to have to work well in to their 60’s and don’t have a large savings for retirement delaying SS as long as possible makes sense and hope you are still alive to collect some of what you paid in.
 

TPC

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Remember Medicare isn't free.
It's deducted from your SS.
Bernie never mentions that.
(Then you have to buy a supplement policy)

I took mine early.
If I was going to live forever I'da waited.
 

DILLIGAF

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Yep. The information I have is 14 years to break even. Take it at 62. Take it now and let your tax free accounts like IRAs and 401ks continue to earn.

The only reason to wait would be if you won't have other income sources of significance. In which case, you need to stay working to build up the monthly amount.

I'd rather spend it on dive trips to BVI now vs on Depends later.

i just did the calc and yes I would be 84 at break even if I wait. How much longer than that do I live if that? Who knows if i even make it to 70.

do i have the money to fund my retirement? Yes

can the government make more in investments than i can privately? No, but if that 8% is accurate and firm that is pretty good.

i am leaning towards taking it as soon as eligible. The amount of money difference in waiting and the break even point of age 84 make it a simple math equation. After that makes it into blind faith on living longer than that.

tax ramifications will be looked at as well.
 
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DLC

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I just had that conversation with a friend of mine he is 66 and a painter, he said the longer I wait the more money he gets - it like $11 more a month!

So I said wow your skipping over $1500/1800 a month to get $11 bucks more a month, how long do you think your going to live? Well 3 months later he says I’m on it..... he gets just under $1700 month and works for his pocket listing customers painting homes.

He feels more comfortable financially and is great full for me saying something ....

Honestly I don’t think a lot of people think about it or plan out what they need to do.
 

boatdoc55

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Our financial person, good friend, told us that every person is different as we all have different circumstances to deal with. In our case, she advised to take it when we each hit 62. This was based on family history and our health concerns. The deciding factor for us was the amount of time it took to break even. Her scale, for us at least, was take it NOW.
 

2Driver

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Schwab has a decent write up. For those married there are other considerations. Personly I don’t think it is that complicated a decision and not that much either way. If it was take a lump sum or annuity decision then maybe. Sure don’t need a so called financial advisor to tell me what to do, especially since it’s rolling the dice for a large part of that decision.

 

Ziggy

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i just did the calc and yes I would be 84 at break even if I wait. How much longer than that do I live if that? Who knows if i even make it to 70.

do i have the money to fund my retirement? Yes

can the government make more in investments than i can privately? No, but if that 8% is accurate and firm that is pretty good.

i am leaning towards taking it as soon as eligible. The amount of money difference in waiting and the break even point of age 84 make it a simple math equation. After that makes it into blind faith on living longer than that.
It truly boils down to your health and well being in your latter years. It's no secret many mid 80 year olds can barely remember their names.
Need to take a DeLorean trip to 2044 and see if I should wait or cash in early.
 

clarence

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Waiting is a guaranteed 8% return/increase each year, most would die to be assured 8% on their investments. If you can draw on other savings first you should and wait till 70. Also, consider you may need to pay taxes on SS or could increase your tax bracket which could impact IRA conversions to Roth if you want to do that.

This.
 

Instigator

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My biggest issue is the penalty for making more than the 15K in earned income. And exactly what is or will be considered earned income is what has me concerned so I plan on waiting till full retirement age of 67 to take my SS benefit to avoid the penalty. Hell, I'm concerned over the penalty for Medicare for making over 88K.
I do plan on retiring before 67 but on my savings which is a combination of both tax deferred and tax free through Traditional 401K, Roth 401K, IRA, and Roth IRA along with other investments.
Depending on your expected income, tax planning is gonna be a real problem and very slippery slope for anyone that hasn't stayed informed or planned ahead.

Quotes from SSA.gov and Medicare.gov websites.

"If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit. Once you reach full retirement age, there is no limit on the amount of money you may earn and still receive your full Social Security retirement benefit."

"If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard Part B premium and an income-related monthly adjustment amount. "
 
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Rye

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As it stands I will wait till I’m 65 to be eligible for Medicare. If I’m enthusiastic I may wait to 66 years and 8 months.
 

SummitKarl

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It truly boils down to your health and well being in your latter years. It's no secret many mid 80 year olds can barely remember their names.
Need to take a DeLorean trip to 2044 and see if I should wait or cash in early.
cleanliving.jpg
 

CLdrinker

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I’m going to be 42 so this issue hasn’t been given much thought.
If I start drawing ss at 65 and die at 70 where does all that money go that I paid into?

Can my wife continue to receive it?

1 big problem I do have is I’m 9yrs older than my wife 😉. I have to be able to afford for her to retire when I do. I’m dead set on 65 so she will be calling it quits at 56.
Not going to be easy
 

Looking Glass

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Taking it early and finding much better places to have your $'s and be Ahead of the Game.
 

fmo24

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I’m going to be 42 so this issue hasn’t been given much thought.
If I start drawing ss at 65 and die at 70 where does all that money go that I paid into?

Can my wife continue to receive it?

1 big problem I do have is I’m 9yrs older than my wife 😉. I have to be able to afford for her to retire when I do. I’m dead set on 65 so she will be calling it quits at 56.
Not going to be easy
This is us. I retired at 59 and partner quit working at 50. Pension and 401 draws until this year when i stated SS at 62. Partner will have a pension at 55 and has 401 savings as well. We decided for me to draw early so our savings and investments can continue to work and grow for us.
 

was thatguy

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I’m going to be 42 so this issue hasn’t been given much thought.
If I start drawing ss at 65 and die at 70 where does all that money go that I paid into?

Can my wife continue to receive it?

1 big problem I do have is I’m 9yrs older than my wife 😉. I have to be able to afford for her to retire when I do. I’m dead set on 65 so she will be calling it quits at 56.
Not going to be easy

Well, Deb died at 56 so you know “the best laid plans of Mice and Men often go awry”...
 

DILLIGAF

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Talked to my financial guy. Yes the 8% is a nice guaranteed rate on waiting. We are pretty conservative and only shoot for a 4% gain yearly.

so...His take is to wait simply because of that guaranteed 8% and possibly just increase the risk a bit in the retirement account.

taxes wont be a big issue for me. Not enough for that to be the driver of the decision.

not 100% sure at this point what I will do. I have time to decide.

all the input is appreciated.
 

DILLIGAF

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I’m going to be 42 so this issue hasn’t been given much thought.
If I start drawing ss at 65 and die at 70 where does all that money go that I paid into?

Can my wife continue to receive it?

1 big problem I do have is I’m 9yrs older than my wife 😉. I have to be able to afford for her to retire when I do. I’m dead set on 65 so she will be calling it quits at 56.
Not going to be easy

survivor benefits
 

bilz

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I will not be eligible, and I have a small govt pension. I need 4 more quarters, but then my SS would take a hit due to the pension. Many at former employer are collecting and still working. I would take it asap and continue to fund my def comp or 401k.
 

Redracer1090

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Took mine at 65 worked till 70 saved the ss in a stock plan and when i retired had that saving and plus was able to 401k the 5years i worked ,but you have to check out what options are right for your situation ... ss will not go away for people retiring now maybe the 30 and early 40 somethings. good luck......that little extra waiting was not worth it to me...
 

Spudsbud

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I’m going to be 42 so this issue hasn’t been given much thought.
If I start drawing ss at 65 and die at 70 where does all that money go that I paid into?

Can my wife continue to receive it?

1 big problem I do have is I’m 9yrs older than my wife 😉. I have to be able to afford for her to retire when I do. I’m dead set on 65 so she will be calling it quits at 56.
Not going to be easy

LMAO x 2 !!
 

Wasn’t Me

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If you die your wife will receive it... Shoot... Even if your not married any longer.. If you single (Not re married again) when you die it will go to your last wife... Crazy... Unfortunately our family learned from experience.
 

Mandelon

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Effect-of-early-retirement.jpg


That's a helpful graphic from the article. And below is why you might wish to wait, if you think you will live a while after retirement.

What if I delay taking my benefits?
If you retire sometime between your full retirement age and age 70, you typically earn a "delayed retirement" credit (DRC). For example, say you were born in 1951 and your full retirement age is 66. If you started your benefits at age 68, you would receive a credit of 8% per year multiplied by two (the number of years you waited). This makes your benefit 16% higher than the amount you would have received at age 66. (This doesn’t include any potential additional cost of living adjustments for inflation from 66-68).

That higher baseline lasts for the rest of your retirement, and serves as the basis for future increases linked to inflation. While it’s important to consider your personal circumstances—it’s not always possible to wait, particularly if you are in poor health or can’t afford to delay—the benefits of waiting can be significant. See the graphic below. Your benefit is boosted if you wait.

Effect-of-late-retirement.jpg
 

cxr

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Things i read on YT say take it early as possible and invest it yourself .
low yiedl mutual fund should make the break even point even less.
 

LuauLounge

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Both my wife and I took it at Full Retirement Age, 66 for us. Still employed because the company won't fire us. She owns 60% and I own 40%, planning on getting my unemployment someday.
 

2Driver

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i just did the calc and yes I would be 84 at break even if I wait. How much longer than that do I live if that? Who knows if i even make it to 70.

do i have the money to fund my retirement? Yes

can the government make more in investments than i can privately? No, but if that 8% is accurate and firm that is pretty good.

i am leaning towards taking it as soon as eligible. The amount of money difference in waiting and the break even point of age 84 make it a simple math equation. After that makes it into blind faith on living longer than that.

tax ramifications will be looked at as well.

It’s not really 8% as you would think of an investment of your money making 8%. Far from it.
 

DLC

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Doesn’t everyone get the same amount if your fully invested worked and paid into the system for years. If I made $45,000 for the past 25 years and my buddy made $90,000 for the past 25 years and we both started drawing at 62 and we are both the same age he just made more money than I,

will we get the same monthly amount? Or is it a sliding scale
 
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