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For you old guys and SS

DILLIGAF

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Do you or anybody know if it matters whether or not any additional money earned is W-2 versus 1099 income? I guess what I'm trying to figure out is if you made additional money over $15k but paid out as 1099 income, would that fly?

its all the same I would think simply because you owe taxes on that 1099. Get people to lose the 1099’s ;)
 

2Driver

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its all the same I would think simply because you owe taxes on that 1099. Get people to lose the 1099’s ;)

Shit it can’t be, plenty of seniors make reasonable income from their investments and retirement I would think it would be W-2 versus 1099. You take from your 401(k) or IRA and get cut back from Social Security benefits?

Good question though
 

fmo24

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Savings (401)withdrawals are not considered income for SS as far as I understand.
 

DILLIGAF

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Shit it can’t be, plenty of seniors make reasonable income from their investments and retirement I would think it would be W-2 versus 1099. You take from your 401(k) or IRA and get cut back from Social Security benefits?

Good question though
Savings (401)withdrawals are not considered income for SS as far as I understand.

You sure about that? I might have misunderstood today but my SS take increases my gross income which is nothing more than my self funded retirement accounts.
 

lebel409

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This is a great thread, my wife wants me to wait, I want to hit it out of the gate. I turn 61 next month so it's time to figure it out...
 

fmo24

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You sure about that? I might have misunderstood today but my SS take increases my gross income which is nothing more than my self funded retirement accounts.
I just started SS but from what I could get from them pension and 401 draws do not count as income. Secondary job income would reduce your SS. I guess I will find out next year when I have to pay if I’m wrong lol
 

DILLIGAF

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I just started SS but from what I could get from them pension and 401 draws do not count as income. Secondary job income would reduce your SS. I guess I will find out next year when I have to pay if I’m wrong lol

gonna be all new to me so I am learning plenty in here. Tx
 

2Driver

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Earned income consists of the following types of payments: (a) Wages—(1) Wages paid in cash—general. Wages are what you receive (before any deductions) for working as someone else's employee. Wages are the same for SSI purposes as for the social security retirement program's earnings test.
 

HubbaHubbaLife

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Medicare A is free, Medicare B is 148.50/month. On top of that, you will want Medicare Supplemental. I have Plan G, which is the top for now. I pay appox $130/month and it covers all of my medical expenses, except for $185 deductible for the year. I was diagnosed with cancer the year the month before I turned 65. The first month with my PPO deductible cost me approx 9k, I went on Medicare the following month and for the last 5 years have never spent a dime through today, other than the $185 deductible.
Dang, I had no idea of those medicare facts.... my buddy just passed at 53 from Pancreatic C.... he was an employee at MicroSoft on disability and said his medical bills were astronomical numbers and healthcare covered pretty much everything.... but had to fight for coverage in some cases.
 

KevinR

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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!

I did pretty much the same and for me we will wait till I hit 67 in two years.

Of course, that assumes I’ll get there! 🤪
 

Paradox

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So, both my wife and I will have hit the maximum pay in amounts to SS for the entirely of the last 35 years, once we retire in 4 years. As a result, we should each reap the maximum available benefits conditioned only on the age we start taking them. In turn, this money does have a bearing on our overall retirement funding strategy.

Since Woman statistically live 7 years longer than Men, the plan is for me to start drawing at 65 and deferring hers until she reaches 70.

401k draws have no bearing on SS payments. They are not considered income. The only impact is your tax bracket. Since our bracket will be (presumably) lower upon retirement, a transition to a Roth at this time doesn’t make any sense for us since the money will be immediately taxed at the highest rate.

While there is some potential upside to the tax free earnings status for a Roth, there is no guarantee this will be significant since we are in our 60s.
 

Sandlord

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I agree with “do the math”
how long do you hope to live?
My dads and uncles health declined around 85 years old.
So I figured the total from 62-85, 65-85, and 67-1/2-85, and was surprised that starting at 62 gave me the best return. Or close enough to make little difference.
In the end I retired at 55 from Boeing and planned on working at Raytheon until 62.
But lumbar and cervical issues prevented that.
SS disability looked at my health records (through an advocate) and decided I could get full (67-1/2 age) SS at 60, with backpay to 59.
The only problem is that I will lose my Boeing medical and need to go on Medicare sooner. Luckily Boeing has an option for that and will continue to cover my wife for another 5 years. Until she turns 65.
 

Sandlord

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I’ll just add.
If you are between 40 and 62 and have some medical issues and want to see if you can qualify to get full SS early?
Hit me up and I’ll send you the number of the advocate I used. There are lots of forms and your past medical info you will need to dig up. But I am more than happy that I am getting $800 per month more that I planned to get, and 8-1/2 years earlier than I would have had to wait To get that amount.
 

Joe mama

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My dad took it at 62.5 my mom took it at 70. She will be 88 when she catches my dad. I say take it because you can’t take it with you.
 
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DUNEFLYER

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About a 1k month difference for me between taking it at 62(early) compared to at 67[full) and another 900 month if taken at 70(delayed)
I will start whenever my current work stops. Can you collect unemployment and SS at the same time?
 

Mandelon

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One of my former employees is doing that now.
 

C08H18

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Mind me asking why? Is it there are no guarantees type deal so take it while you can?

My financial advisor says to keep your money invested. Use SS before taking money from investments.


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C08H18

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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.

SS is only guaranteed until 2035. No bets after that. Hidden secret about SS that I just learned recently.


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monkeyswrench

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SS is only guaranteed until 2035. No bets after that. Hidden secret about SS that I just learned recently.


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Sooo, it may just be something I paid into, for others...well that sucks balls!
 

78Southwind

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Sooo, it may just be something I paid into, for others...well that sucks balls!
Don't worry I am sure there will be another Ponzi scheme you can join after SS fails. [emoji1787]

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nowski

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Taking SS early vs waiting the real question to factor in, how many quality years do I have left???

I know everyone's financial situation is different but good health is paramount when comparing the two. Over time good health will decline and with that said today is guaranteed and tomorrow isn't. The more I think about it 62 makes more sense (for me and that will be next year) to collect SS giving me a head start to enjoy what could be the last of those quality years. I definitely don't want give up possibly 5 quality years I'll never get back chasing a carrot on a stick. Don't get me wrong everyday is a blessing and should be cherished every moment of everyday. In those final years every year you put another candle on that birthday cake your life and hobby's will change accordingly...
 

Christopher Lucero

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theory on taking SS
It is a bet on your own longevity, so what I did was to use my parents and grandparents ages at death to form an estimate of what I was to expect, as compared to the actuary tables that SSI uses. In essence, without giving too many personal details there are breakpoints at 77yrs, 85 yrs and 88 yrs that correspond to SSI @ 62, SSI @ FRA (66 3/4 for me) and SSI @ 72 (70 1/2 before the recent change to rules).

Each of those breakpoints yields about the same, +/-$10k, (amortized @ 4% annual yield, with SSI COLAs within consideration) net benefit collected for me.

For example, if I start at 62 and I live to 77 or more, starting at FRA (66 3/4 for me) would have been a better decision than starting at 62 as I would have collected more net benefits in toto.

Likewise, if I start at 66 3/4 and live beyond 88, it would have been better to start at 70 1/2 ( or 72 under new rules).

As a strategy, I am liquidating as much as possible of my IRAs into post-tax and Roth accounts before I start collecting SSI so that I will never have to take an RMD nor have earnings affect a taxation or reduction of SSI benefit.

I do however like what one post noted: collect ASAP and invest the proceeds. That is a bet on living, rather than my bet against death, and it is bold and probably a good approach for most who don't _need_ the money.

I must also note that I also calculated the payback from SSI (it is an insurance scheme after all...insurance never gives back to you everything you put in) that was funded by me and my employers, and I will never get back - no matter how long I live - what was paid in by us, except in negative interest rate scenarios. (these could occur, as Germany and other EU nations have been in negative interest rate territory for a few years now.)
 
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2Driver

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About a 1k month difference for me between taking it at 62(early) compared to at 67[full) and another 900 month if taken at 70(delayed)
I will start whenever my current work stops. Can you collect unemployment and SS at the same time?

Seems like a high difference from I have looked into. You sure about that? Its a 25% difference to wait from 62-67
 

DUNEFLYER

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According to the SS calculator for my account, yes the #'s are correct.


Seems like a high difference from I have looked into. You sure about that? Its a 25% difference to wait from 62-67
 

DILLIGAF

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I used his philosophies based on just listening to his radio program. I just did it all on my own. Well, I am debt free, no bills and can now travel around and do what I want. This is after some disastrous years with a divorce and legal proceedings concerning my business of 30+ years.

I do believe in what he is saying.
 

cxr

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I used his philosophies based on just listening to his radio program. I just did it all on my own. Well, I am debt free, no bills and can now travel around and do what I want. This is after some disastrous years with a divorce and legal proceedings concerning my business of 30+ years.

I do believe in what he is saying.


Cool i am in that same process now. try to listen to him to dont make any dumb mistakes but dont follow his program too closely.

trying to get debt free but its hard with kids :( but definitely saving for retirement and trying to live your lifestlye in 6-7 more years
 

Bobby V

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About a 1k month difference for me between taking it at 62(early) compared to at 67[full) and another 900 month if taken at 70(delayed)
I will start whenever my current work stops. Can you collect unemployment and SS at the same time?
As of a couple months ago mine is approx. $2,244.00 @ 62...$3,214.00 @ 67 and $4,000.00 @ 70.
 

racektm

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As of a couple months ago mine is approx. $2,244.00 @ 62...$3,214.00 @ 67 and $4,000.00 @ 70.
Mines about the same as of today, 2371 @62, 3203 @66- 8 months and 4076 @70,
 

DILLIGAF

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Cool i am in that same process now. try to listen to him to dont make any dumb mistakes but dont follow his program too closely.

trying to get debt free but its hard with kids :( but definitely saving for retirement and trying to live your lifestlye in 6-7 more years

takes a lot of discipline for sure. You can do it!
 

Spudsbud

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I’ll just add.
If you are between 40 and 62 and have some medical issues and want to see if you can qualify to get full SS early?
Hit me up and I’ll send you the number of the advocate I used. There are lots of forms and your past medical info you will need to dig up. But I am more than happy that I am getting $800 per month more that I planned to get, and 8-1/2 years earlier than I would have had to wait To get that amount.

PM buddy.
Jim
 

2Driver

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As of a couple months ago mine is approx. $2,244.00 @ 62...$3,214.00 @ 67 and $4,000.00 @ 70.

You have to make up 134,000 by waiting.
That is 12 years to break even waiting until 67. So you'll be 79 at break even? Did I figure that right? If so fuck that lol
 

Bobby V

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You have to make up 134,000 by waiting.
That is 12 years to break even waiting until 67. So you'll be 79 at break even? Did I figure that right? If so fuck that lol
Sounds about right. I have 2 other pensions that will kick in when I retire. I'm not going past 62. About 15 months to go. ;)
 

Ol Man

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OK, I am 76, retired at 61 (wife at 60) and I took SS at 62. Wife was a teacher and never paid in to the system, so gets nothing (not even mine when I die). The breakeven was around 12 years. You start taking your deferred investments at 70 1/2, so pretty much a no brainer for me. The coming inflation has me concerned.
 

2FORCEFULL

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f you've hit full retirement age and are working, here's what happens
Finally, there are Social Security beneficiaries who reach their full retirement age and still work. The great news is that the retirement earnings test no longer applies in this scenario. Once you hit your full retirement age, no matter when you began taking Social Security benefits, you'll be allowed to generate any amount of earned income without a dime of your Social Security benefits being withheld by the Social Security Administration.


Furthermore, any benefits that were withheld by early claimants in years where they earned too much will be returned to those beneficiaries in the form of a higher monthly payout once they reach full retirement age. With the exception of an early passing, you don't lose withheld benefits from the retirement earnings test.
 

2FORCEFULL

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Either way, you aren’t missing payments that you’ll never get back. Your benefit amount will be recalculated at your full retirement age (or when you stop working) to reflect the months that benefits were withheld.
 
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