Social security questions

[69GTX]

While it's true we don't know the future. You could invest that "$96K" and lose a good chunk of it. No one knows where stocks/bonds/real estate will be in 10-20 years, they could be a lot lot lower than today. And living off $14,400 per year is going to be quite a chore vs. $24K per year. Worst case is if you live well into your 80's or 90's and still trying to live off that $14K/yr.

 

[SeaJay]

Originally Posted By: Silverado12
^^^Yes it would, but IMO it's a better decision to collect SS at 62. If you don't need the money at that time, invest it.


Better if you will do not have any work income after 62. Unless things changed recently, if you continue to work while collecting social security there is a penalty which will complicate the decision.

 

[cheech279]

Grampi, it was my mistake. I was confusing your situation with Indydriver's. Good luck with whatever you decide.

 

[Yah-Tah-Hey]

She can receive half of your monthly payment or her monthly payment, whatever is greater.

 

[Dave Hess]

Honestly... at 62 you should have a lot more than SS to rely on for retirement considering a person had 30+ years to plan and invest.

I say take it at 62 and enjoy it while you are still 'young'

 

[Al]

Originally Posted By: Silverado12
^^^Yes it would, but IMO it's a better decision to collect SS at 62. If you don't need the money at that time, invest it.

I disagree. Don't take it till you need it. Waiting is a guaranteed investment and you avoid taxes. I took it early and am sorry I did. In this climate investment returns may not be positive.

Think it through!!!

 

[grampi]

Mr Nice, I do. I will also have my military pension, and my civil service pension, but I'd still rather wait until my full retirement age to collect SS so I can get the extra $800 a month...

 

[HerrStig]

Originally Posted By: grampi
Mr Nice, I do. I will also have my military pension, and my civil service pension, but I'd still rather wait until my full retirement age to collect SS so I can get the extra $800 a month...
ANd if you don't live that long how much do you collect.

 

[pbm]

I think like you Grampi....I'd rather have more later...My dad took SS at 62 and lived until just shy of 88....he would have been better off waiting.

Wouldn't it be nice if our Congress people had to depend on SS for their retirement.....maybe they wouldn't have been so quick to squander it.

It really is time to 'Drain that Swamp'.

 

[Dave Hess]

Originally Posted By: grampi
Mr Nice, I do. I will also have my military pension, and my civil service pension, but I'd still rather wait until my full retirement age to collect SS so I can get the extra $800 a month...


Then wait a few years and live off your 2 pensions, very rare now or days to have.

I also have 2 pensions so I'm the same situation as you.

 

[javacontour]

There is no one clear cut answer. If one is in good health and has a family history of living a long time, you may be better off delaying retirement and/or taking SS benefits.

If the opposite is the case, perhaps the right answer is to retire as early as possible to enjoy some time off.

But I doubt there is a single answer that works for all who ask.

 

[DBMaster]

I was a finance major way back in the 1980's. The one thing people tend to forget is the time value of money. You don't simply take $800 and multiply it by the number of months between age 62 and your full retirement age. Money now is worth more than money in the future, dependent upon inflation and interest rates. In my case, starting to draw social security at age 62 (full retirement for me is 67) will be worth quite a bit more than the simple $48,000. If inflation is above the paltry percentage it is now it could be substantially more. If you are able to invest those cash flows, even in a simple money market or CD the effect is even greater.

If someone gives you $800 today and you stuff it under your mattress will you be able to buy as much with it five years from now?

 

[grampi]

Originally Posted By: HerrStig
Originally Posted By: grampi
Mr Nice, I do. I will also have my military pension, and my civil service pension, but I'd still rather wait until my full retirement age to collect SS so I can get the extra $800 a month...
ANd if you don't live that long how much do you collect.


None, my wife would collect it...

 

[grampi]

Originally Posted By: DBMaster
I was a finance major way back in the 1980's. The one thing people tend to forget is the time value of money. You don't simply take $800 and multiply it by the number of months between age 62 and your full retirement age. Money now is worth more than money in the future, dependent upon inflation and interest rates. In my case, starting to draw social security at age 62 (full retirement for me is 67) will be worth quite a bit more than the simple $48,000. If inflation is above the paltry percentage it is now it could be substantially more. If you are able to invest those cash flows, even in a simple money market or CD the effect is even greater.

If someone gives you $800 today and you stuff it under your mattress will you be able to buy as much with it five years from now?


I will be able to live better on $5500 a month 4 years and 8 months later than I will on $4700 a month if I take it at at 62...

 

[DBMaster]

46 months, that's $263,200 in the bank of you save all of it - since you apparently don't need it. With the earnings, even a little bit of interest, accumulated you'd be able to supplement that 4,700 for a LONG time. But, I get it. There are plenty of decisions based upon more than just calculations and logic.

 

[grampi]

Originally Posted By: DBMaster
46 months, that's $263,200 in the bank of you save all of it - since you apparently don't need it. With the earnings, even a little bit of interest, accumulated you'd be able to supplement that 4,700 for a LONG time. But, I get it. There are plenty of decisions based upon more than just calculations and logic.


I think some of your numbers are off. Where are you coming up with $263,200? And what is 46 months? It would be 56 months between age 62 and age 66 and 8 months. If I took SS at age 62 that would be $67,200 I would give up to wait until full retirement age. It would take 8 years to make that up after I reach full retirement age. I still don't know where you came up with the $263,200 number...

 

[DBMaster]

Originally Posted By: grampi
Originally Posted By: DBMaster
46 months, that's $263,200 in the bank of you save all of it - since you apparently don't need it. With the earnings, even a little bit of interest, accumulated you'd be able to supplement that 4,700 for a LONG time. But, I get it. There are plenty of decisions based upon more than just calculations and logic.


I think some of your numbers are off. Where are you coming up with $263,200? And what is 46 months? It would be 56 months between age 62 and age 66 and 8 months. If I took SS at age 62 that would be $67,200 I would give up to wait until full retirement age. It would take 8 years to make that up after I reach full retirement age. I still don't know where you came up with the $263,200 number...


I'm apparently not firing on all cylinders, but you said $4,700/month, didn't you? 4,700 X 56 = 263,200. But, I don't think I read far enough back. How much would your actual SS checks be at Age 62 and at FR age? We may not be thinking along the same lines. I know you get $800/month less, but if you wait until FR age you collect NOTHING between age 62 and then.

 

[DBMaster]

I'm probably not using the right numbers because I don't think that $4,700 was SS alone. I think the earlier post about the $112K is right. I want to get out of the corporate office asap so I'll be cutting back to an easier, lower paying job and collecting SS as soon as I possibly can. Combined with my other savings I will make it work. If I don't I'll never be able to enjoy my autumn years because I'll be dead from a heart attack.

 

[grampi]

Originally Posted By: DBMaster
I'm probably not using the right numbers because I don't think that $4,700 was SS alone. I think the earlier post about the $112K is right. I want to get out of the corporate office asap so I'll be cutting back to an easier, lower paying job and collecting SS as soon as I possibly can. Combined with my other savings I will make it work. If I don't I'll never be able to enjoy my autumn years because I'll be dead from a heart attack.


The $4700 a month would be my total monthly income (all of my pensions combined) if I took SS at age 62. If I wait until FRA before taking SS, my monthly income would be $5500...just my SS would be $1200 a month at age 62, $2000 a month at FRA...

 

[Wolf359]

What if you wait til you're 70? Or is it 70 1/2 to get the max benefit. Lots of short term vs long term thinking going on here. The current math favors taking it as late as possible. If you look at the actuarial tables, you'd get the most out of SS by taking it as late as possible as people on average are living longer. But if you're in poor heath, then it makes sense to take it earlier. I forget the exact age, but the benefit is based on people living to a certain age and with people living longer, it's worth it to take it later. There are many people in their 80's and 90's walking about. Everyone saying to take it early must be thinking they're going to be dropping dead pretty soon.