*Investors Blog*

[TnT_M]

I have read many times to take at 62 and invest it....

Now I am considering delaying as long as I can.

Might as well have a thread on what oil is the best oil... If you ask 10 people, you will get 11 different answers.

FWIW, I think it depends on everyone's personal circumstances.

I think @JeffKeryk makes an excellent point with the $5 bill analogy. I will share my perspective. The time value of money is difficult to overcome, so taking the money earlier tends to pay off. The tipping point can easily be calculated to find a best fit answer. Unfortunately, life expectancy is the biggest unknown.

 

[Pablo]

Might as well have a thread on what oil is the best oil... If you ask 10 people, you will get 11 different answers.

FWIW, I think it depends on everyone's personal circumstances.

I think @JeffKeryk makes an excellent point with the $5 bill analogy. I will share my perspective. The time value of money is difficult to overcome, so taking the money earlier tends to pay off. The tipping point can easily be calculated to find a best fit answer. Unfortunately, life expectancy is the biggest unknown.

Exactly!!!!!!!!!!!!!!!!!!!!!!!!

 

[DaveNC]

I am going for it early, as in 62. My thoughts are the majority will be saved anyway. If I waited until 70 and died at 69 my wife wouldn’t get anything. If it was in my investment account it would be a little more for her. Everyone’s situation is different and there are many different roads to the same destination.

 

[Astro14]

I’m already 62. No point in taking Social Security now, as my salary is more than I need.

But I’m forced to retire when I turn 65 and will likely take it then.

 

[02SE]

When and if I reach the age of eligibility, I'll likely claim at 62, and put the money in an investment account for Grandkids.

 

[Dave Hess]

I am going for it early, as in 62. My thoughts are the majority will be saved anyway. If I waited until 70 and died at 69 my wife wouldn’t get anything. If it was in my investment account it would be a little more for her. Everyone’s situation is different and there are many different roads to the same destination.

Take it at 62 and enjoy the money.

 

[Al]

I’m already 62. No point in taking Social Security now, as my salary is more than I need.

But I’m forced to retire when I turn 65 and will likely take it then.

Exactly and if your wife has not worked a lot, she will benefit by getting yours at the higher amount if you pass.

 

[Leo99]

I'm debating taking SSA at this year 63.5 or 64 in Jan 2027. The tax situation is simpler at 64 because I'll be fully retired and living off investment money vs taking it at 63.5 and I'm understanding I can claim SSA on a month to month basis the first year of retirement. I'll have to claim a considerable amount of income in 2026 from before I retire. I'm talking to my FA this week and will see what my tax guy says.

 

[Mechanician]

Exactly and if your wife has not worked a lot, she will benefit by getting yours at the higher amount if you pass.

This is a consideration that many don't make. A spouse after a death - getting by on a single SS check is quite common.
Hopefully the spouse they lost left plenty of other investment money - often not.

 

[Pablo]

I'm debating taking SSA at this year 63.5 or 64 in Jan 2027. The tax situation is simpler at 64 because I'll be fully retired and living off investment money vs taking it at 63.5 and I'm understanding I can claim SSA on a month to month basis the first year of retirement. I'll have to claim a considerable amount of income in 2026 from before I retire. I'm talking to my FA this week and will see what my tax guy says.

Depends a lot on who/how you are paying for health insurance

 

[Mechanician]

Depends a lot on who/how you are paying for health insurance

Another thing I've noticed - the area you retire to can have a big impact on the quality of your insurance, or medicare plan.
If you live in an area with good options count your blessings.

 

[Pablo]

Another thing I've noticed - the area you retire to can have a big impact on the quality of your insurance.
If you live in an area with good options count your blessings.

We have semi-decent options, but we did get body slammed a few years back. We both retired before 65 and did the state/county ADA Fed marketplace thing which basically keeps the health insurance premium low to the consumer IF your income is below a threshold.........well we popped above! IRS bazinga'd me. Pay UP.............

 

[Leo99]

Depends a lot on who/how you are paying for health insurance

I'm paying out of pocket for COBRA. I guess.

 

[Pablo]

I'm paying out of pocket for COBRA. I guess.

'spensive (here)

 

[Leo99]

We have semi-decent options, but we did get body slammed a few years back. We both retired before 65 and did the state/county ADA Fed marketplace thing which basically keeps the health insurance premium low to the consumer IF your income is below a threshold.........well we popped above! IRS bazinga'd me. Pay UP.............

I'm going to be looking at closer to 7 figures my last 6 months of income. It's a good problem to have but need to be smart.

 

[alarmguy]

Another thing I've noticed - the area you retire to can have a big impact on the quality of your insurance, or medicare plan.
If you live in an area with good options count your blessings.

Medicare part A and part B is equal from coast to coast.
If you would like to get supplemental insurance those plans are the same across the country, such as supplemental policies Plan N and Plan G
The big wide variable is cost can be tremendously different across the country but the plans themselves are exactly the same.

If you decide to get drug coverage part D they too are pretty much the same across the country however cost will vary.

As you pointed out as far as options, the big giant wide variable is the private Advantage plans which are not in any way the same across the country as far as what is offered in each area as well as cost. Many insurers have completely exited some high cost areas.. with that said they do have to cover everything that original Medicare covers except for some experimental treatments.

I know you probably know all this I was just posting it for the benefit of others. So far I’m in one of the better areas and have a fantastic advantage HMO from Humana with every health network that I could possibly go to within 200 miles of here and that also includes the well-known Duke medical centers.

Last year, I elected to have Medicare part a, part B, supplemental plan N and drug coverage D
I know, for fact here in North Carolina the cost for that plan was about 50% less than I would have had to pay in my old home state of New York

 

[Pablo]

Plans same yes

Choices different though

 

[alarmguy]

It’s times like this that I am loving my old, faithful ginormous company Walmart.
When the chips are down and the stock market sucks, I could always count on not taking a bath with Walmart.
I will admit I think the evaluation is getting crazy, but I can’t complain

 

[Mechanician]

Medicare part A and part B is equal from coast to coast.
If you would like to get supplemental insurance those plans are the same across the country, such as supplemental policies Plan N and Plan G
The big wide variable is cost can be tremendously different across the country but the plans themselves are exactly the same.

If you decide to get drug coverage part D they too are pretty much the same across the country however cost will vary.

As you pointed out as far as options, the big giant wide variable is the private Advantage plans which are not in any way the same across the country as far as what is offered in each area as well as cost. Many insurers have completely exited some high cost areas.. with that said they do have to cover everything that original Medicare covers except for some experimental treatments.

I know you probably know all this I was just posting it for the benefit of others. So far I’m in one of the better areas and have a fantastic advantage HMO from Humana with every health network that I could possibly go to within 200 miles of here and that also includes the well-known Duke medical centers.

Last year, I elected to have Medicare part a, part B, supplemental plan N and drug coverage D
I know, for fact here in North Carolina the cost for that plan was about 50% less than I would have had to pay in my old home state of New York

I wanted to point this out to anyone planning on retirement in a new locale.
It is something to be considered in the mix with the weather, cost of living, and taxes.

 

[Astro14]

Exactly and if your wife has not worked a lot, she will benefit by getting yours at the higher amount if you pass.

My wife worked quite a bit. She was in banking and finance before joining the Navy.

She served a full 28 year career in the Navy, retired as a senior officer, and then worked several years as a government civilian.

But, since neither of us really need Social Security at the moment, I don’t see the benefit in taking it, we just would pay taxes on it right now. Better to wait until my retirement.