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Hi I am Sherry
Old 02-01-2015, 01:37 PM   #1
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Hi I am Sherry

I have been reading earlyretirement for quite a awhile, and got a lot of good answers I needed from others questions and replies.

Retirement came early for my husband because of a layoff in sept 2014 after 30 years in same company...but we had been thinking of him retiring this January anyway so we were not in too bad of shape like others who were let go.

Our plan is to defer taking ss until age 66 or possibly 70. He turned 62 this month I am a few years younger than him. We are forced in aca, because the cobra was very expensive which we did pay for in 2014 and started aca Jan 2015 big price difference! We have to keep our magi down this year to keep the aca cost down. We are taking from ira, after unemployment runs out in a few months I am trying to keeping yearly income on magi at 22500. Luckily for us we have savings to compensate for what else we need above the 22500

That is my 4 year plan! Will wait until his 66 birthday to decide then if we take ss or try to hold out for age 70. Actually I will be the one deciding my husband has no interest in any of the financial and has always left if up to me to figure out the plan and he goes along with it!

Have enjoyed reading the good advice here

Sherry
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Old 02-01-2015, 01:55 PM   #2
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Welcome to the forum! Glad to hear you're in generally good shape to weather the unplanned-for layoff but that could be the silver lining.

Here are some issues to think about: Some Important Questions to Answer Before Asking - Can I Retire?
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Old 02-01-2015, 02:00 PM   #3
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Hi Sherry and welcome to the group.

Re you being the financial modeler, I share the same inclination although I'm the male of the species. I saw that you were thinking about taking SS late. Just wanted to point out that when we did all the calculations we found that taking it early actually gave us a higher income. We learned this by running our situation through ES Planner and testing the various SS start dates.

Our model includes some Roth rollovers so that may have influenced the results. We could not have done this calculation as easily without ES Planner. We both think it was well worth the $150 investment.

Just wanted to make you aware of this result so you could consider it.

Best wishes for a great future!
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Old 02-01-2015, 03:19 PM   #4
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It is probably our best interest to wait longer for ss.

Reasons
I only get spousal benefits, I will have low taxes on taking out ira now. And our social security benefit at age 70 we would need very little ira money. I could live on just his ss if something happened to either one of us. Our RMD would be much lower, so less taxes The only thing I am hesitant about is if collect at 66 or 70. That is more a longevity issue, something none of us know the answer to. One thing I do know definitely is taking it at 62 would not be a good idea. We are invested 30 cash 40 bond 30 stock

I read the paper by James Mahaney Innovative Strategies to help maximize Social Security Benefits. I have read on this forum all the pros and cons to both sides.
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Old 02-01-2015, 03:33 PM   #5
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I have a "sinking fund" that covers my SS until age 70 (currently 63) and DWs SS until she is 64 (my FRA). It also includes the expected medical insurance costs until we both reach 65. You might want to calculate what assets you need to have a similar fund for yourselves. You can then see how well you can balance the assets withdrawals to meet this cash stream and keep it within ACA subsidies.
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Old 02-01-2015, 03:48 PM   #6
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Old 02-02-2015, 06:42 AM   #7
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Welcome OP.
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Old 02-02-2015, 07:37 AM   #8
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Welcome to the group, Sherry!
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Old 02-02-2015, 08:53 AM   #9
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Welcome to the forum Sherry. I sympathize with the SS dilemma. On the one hand, you do get considerable more money the longer you delay. On the other hand, quality of life in your 60's can be a better use of cash than an extra 8K or so in you 70s and 80s.

I've also done many calculation via ESPlanner and am inclined to take SS starting at 62. Antidotal evidence shows that folks slow down so much in the 70s and 80s that money just isn't that much of an issue. I think I'd rather enjoy my 60s a little more while I still had the desire to have a relatively more active lifestyle. Of course, I'm only 50, so I have a while to think about it.
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Old 02-02-2015, 10:50 AM   #10
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i'm with nanosour's thinking. I applied for ss last week as my 62'nd is close. I see myself having to take up golf at 70 as I probably won't be able to do the things I do now. as I get older, things just don't work as well as they did.
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Old 02-02-2015, 11:25 AM   #11
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The only problem with taking it at 62 is reduction for three years of ACA subsidies due to the higher income. Maybe 65 would be better when Medicare kicks in?

I'm in the take it at 70 camp right now. Thinking longevity insurance, spend down most assets to age 70, then ss, pension, sell or reverse mortgage home. Die broke.
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Old 02-02-2015, 12:46 PM   #12
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I think from an actuarial POV, it doesn't really matter if you take it at 62 or 70. It's a roll of the dice as to whether you'll get more money in the end either way. In our case I'm waiting until 70 because we have enough money that we don't need it, and it would make me feel better knowing DW would have the higher income should I precede her into the great beyond. If I was alone I'd probably take it early to decrease my draw from savings, allowing DD's inheritance to be larger.


Btw, welcome to the board.
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Old 02-02-2015, 12:58 PM   #13
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Originally Posted by harley View Post
I think from an actuarial POV, it doesn't really matter if you take it at 62 or 70. It's a roll of the dice as to whether you'll get more money in the end either way.
From an actuarial standpoint, the people that will live into their late 80s should definitely defer taking SS until 70. That favors white and asian woman but they should claim their spousal benefit ASAP if they would get more money from spousal benefits. White and asian males are good to take at any age unless they are wanting to help their spouse. Blacks and hispanics should take it the first day they can.

Of course, everything above is a gross generality. Some blacks and hispanics are much healthier than their actuarial demographic. They can move their optimum time to take benefits to the white and asian group. Whites and asians with less than good health should take benefits sooner.
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Old 02-02-2015, 01:46 PM   #14
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The only problem with taking it at 62 is reduction for three years of ACA subsidies due to the higher income. Maybe 65 would be better when Medicare kicks in?

I'm in the take it at 70 camp right now. Thinking longevity insurance, spend down most assets to age 70, then ss, pension, sell or reverse mortgage home. Die broke.
I agree we will be using aca for next five years. haha on the die broke!
We have our mortgage paid off, Actually I never looked into reverse mortgage so am clueless
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Old 02-02-2015, 01:52 PM   #15
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Originally Posted by sherrywilliam View Post
I agree we will be using aca for next five years. haha on the die broke!
We have our mortgage paid off, Actually I never looked into reverse mortgage so am clueless
I am a big opponent of a reverse mortgage unless you know you won't ever need assisted living or nursing care. Since no one can be sure of that, I can't see why anyone would get a reverse mortgage. If you "need" a reverse mortgage to stay in your house, it says you can't afford the house anymore. It's time to seriously downsize and conserve cash.

It's nice to think that you can time everything just so perfectly but nobody can be sure enough of things to expect the check for their funeral to bounce (after the funeral, of course).
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Old 02-02-2015, 02:10 PM   #16
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I am a big opponent of a reverse mortgage unless you know you won't ever need assisted living or nursing care. Since no one can be sure of that, I can't see why anyone would get a reverse mortgage. If you "need" a reverse mortgage to stay in your house, it says you can't afford the house anymore. It's time to seriously downsize and conserve cash.

It's nice to think that you can time everything just so perfectly but nobody can be sure enough of things to expect the check for their funeral to bounce (after the funeral, of course).

I would also sale my home if too broke to afford it. I now only pay 2400 a year tax and insurance. Luckily I paid it off summer of 2014 only a few months before layoff. I had originally taken out a 15 year loan to make sure it was paid off by retirement, but beat that out by paying it off a few years ahead of schedule. Sometimes things just fall in place!
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Old 02-02-2015, 02:59 PM   #17
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.."need" a reverse mortgage to stay in your house - nope, Las Vegas baby!
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Old 02-02-2015, 04:46 PM   #18
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Welcome to the crew. Sounds like you've got your financial house in order..


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