Playing with some numbers..... (LONG)

[Pilot2013]

Introduced myself a while back, and got lots of good information, not the least of which was tracking spending. Found that my bank has a system where you can assign categories and get reports, so I went back to 1/1/2015 and re-assigned expenses. Will keep that going for the next few years!

Then, I started trying to do some fun stuff. Took a look at my 401K and found 5 year average of 10.9% return. I lowered that to 8%, and ran through a calculator (with my contributions also added in) to get a rough estimate of ending balance over the next years.

Next, I started looking at SS for DW and I at various start points for both of us, trying to determine the best (or at least reasonable) start to SS. I am genetically challenged, whereas both of her parents hit 89 and 90, with one still going. I think I will take mine earlier, and then do the file and suspend thing for her at FRA and let her wait until 70 to start while getting something out from spousal benefit.

After all of this, I grabbed another calculator and did some AW work on 401k until I start SS, re-adjusted 401k AW's (down) until DW files, suspends, and starts getting spousal, and then another AW decrease from 401k until both on SS, then a final AW decrease from 401k for another 20 years. Looked like there was about $395k left in the bank if I ER'd at 57 and could "manage" to live off of $80k/year.

Now, if I can just MANAGE to put up with this Job 5 more years!!

 

[robertf57]

Nice to start thinking of alternatives while you still have time to make changes. I am not following your file and suspend for your wife at FRA.... My understanding is she can get hers or yours at her FRA. There is no file and suspend if you are already taking your social security (and her spousal benefit will be reduced if you took your social security early...

 

[Pilot2013]

I may have this wrong, but I thought that at FRA, she should file for her SS, suspend it to let it continue to accrue to higher value at 70, but start taking spousal benefit under mine? Yes, I know it would be reduced if I start early, and I accounted for that in the benefit determination.

Maybe at FRA she can just draw on mine and not file and suspend? Either way it is accomplished, those are the numbers I was looking at in the calculations.

 

[Golden sunsets]

Robert is correct I believe in that she does not file and suspend in order to collect spousal. However he is incorrect that her spousal would be reduced if you collected yours prior to FRA. The situation the OP outlined is exactly the route DH and I have taken. DH started his reduced SS at age 62. I turned 66 last December. I filed for spousal benefits the month I turned 66. I was pleasantly surprised to see that I receive 50 percent of his PIA at full retirement age not 50 percent of his current reduced benefits. I will wait until I am 70 to switch to my own benefits. No file and suspend.

 

[Pilot2013]

Wow Golden! That is good news! I had calculated her spousal at 50% of my reduced benefit, so that will help out a good bit.

Hope life is treating you very well!

 

[Golden sunsets]

Yes it is good- so she does not also get hit with the 25% haircut that you took.

 

[robertf57]

Robert is correct I believe in that she does not file and suspend in order to collect spousal. However he is incorrect that her spousal would be reduced if you collected yours prior to FRA. The situation the OP outlined is exactly the route DH and I have taken. DH started his reduced SS at age 62. I turned 66 last December. I filed for spousal benefits the month I turned 66. I was pleasantly surprised to see that I receive 50 percent of his PIA at full retirement age not 50 percent of his current reduced benefits. I will wait until I am 70 to switch to my own benefits. No file and suspend.

I learned something new!

 

[Golden sunsets]