Social Security and Paid-off Mortgages?

[Fedup]

I'm not only carrying a mortgage at 3.5%, but I got the new house and new tax rate just 2 years before I retired. Risk taker I am. My husband is taking SS at age 64.5, I will be taking it at 70.

 

[iloveyoga]

62 for DH, planning on 62 for me too. Paid off our house seven years ago and never looked back.

 

[COcheesehead]

Will take my mortgage into retirement for many reasons at 3% fixed.
SS: wife 67, me 70. Optimal lifetime benefits.

 

[athena53]

Age 64, started collecting Widow's benefits last year, will collect on my record at age 70. Took out a $100k mortgage 2 years ago; 15 year, 3% fixed. Payment is $700, so very manageable. I'm from the group that prefers to borrow at 3% rather than take it out of investments yielding more.

 

[pb4uski]

Will either both claim at FRA or DW will claim at FRA and I will wait until 70 (I i.had much more earnings than DW). Meanwhile, since we are now both 62 SS is available to us should the stuff hit the fan with respect to our investments and we want to start it.

No... in fact we did the opposite.. we refinanced from 4.375% to 3.375% just before I went off of payroll.

Just for kicks I ran an Investment Performance report in Quicken from the date we refinanced to today... our average annual earnings rates has been 8.91%... things would have to go sideways in a really bad way from here for that to end up being a poor decision.

 

[daylatedollarshort]

Just for kicks I ran an Investment Performance report in Quicken from the date we refinanced to today... our average annual earnings rates has been 8.91%... things would have to go sideways in a really bad way from here for that to end up being a poor decision.

It is hard to argue with success.

Even with say a 3% return and a 4% mortgage, that would be a 1% loss. On a $300K mortgage that would only be a $3K loss in one year for keeping the mortgage.

 

[rayinpenn]

Paid off mortgage about 15 years ago ... SS next January will be 63.5

 

[EQMAN]

Paid off mortgage about 15 years ago ... SS next January will be 63.5

Paid off mortgage 10 years before RE at 55. Plan to take SS at 70 and DW at FRA

 

[exnavynuke]

Currently on track to pay off the mortgage about 3-5 years into retirement (depending on if I make my "hoping for" ER or my "planning for" ER date). At 2.5%, I'm only paying it down a little faster than the minimum because it makes me feel better doing so.

I plan for taking SS at 62, but if market performance doesn't pan out towards the "historically bad" scenario, I'll probably push it off some. SS plus my VA income is expected to cover my current expense and provide ~$1k extra/month spending money for having fun but if my portfolio is still looking pretty good at 62 I'll keep using that instead of SS for my spending money.

 

[jollystomper]

The earliest we plan on taking SS is 63. Our decision will be based on our financial situation at the time. If we need it, or want to enhance our lifestyle, we'll take it. If not, we will postpone and re-evaluate every year until 70. I would have to live beyond

Our Mortgage rate is 2.87% with a low payment and projected payoff in 10 years. We do not have a need to rush and pay it off.

 

[ejman]

SS at 62, paid of the mortgage in 1999 3 years before ER'd at 52 in 2002. Now at age 67 no regrets over either decision.

 

[pmac]

Paid off the mortgage about 10 years ago. The plan is for DW to file for SS in 2018 at 67 and me to file at 70 in 2024.

 

[Sunset]

No Mort.
Will take SS at 70 for higher earner, probably the same for the lower earner.
Meanwhile do Roth conversions, and live off savings.

I just don't like debt, buy my cars with cash (limits me to not buying Ferrari's), pay off CC every month.
I understand I could play the % game with a low rate mort. and invest in stock market pay the tax and come out ahead over the years.

 

[RE2Boys]

Paid off last mortgage at 46 year old.
Retired at 50.
Started SS at 63, decided that since it was subject to WEP and wife would always get more under her record, survivor benefit wasn't a factor. Also, my then minor children would be eligible for SS for many years at no cost to me.

 

[joeea]

I've yet to see anyone have any regrets about their mortgage or social security start date.

It doesn't seem to matter if the mortgage was paid off early or never.
It doesn't seem to matter if social security was claimed at 62, 65, 70, or anything in between.

Everyone indicates that they have no regrets.

I guess that's a good thing. We make our decisions as we think best, then never look back.
And for most folks on this forum, the choices are likely between good and better anyway.

 

[scrabbler1]

Mortgage paid off in 1995 - 1997 in high earning years. worth every penny.

I paid off my mortgage in 1997-1998. It was a key step toward being able to switch to working part-time in 2001. And that was a big step toward my being able to fully ER in 2008 at age 45.

I always found the mortgage being the largest expense I had total control over. I did a refi in 1992 to greatly lower the interest rate. I made a small prepayment of principal at the time to lower the new loan. I decided to repay the new principal in 1997 and 1998, paying it off by early 1998. I didn't have to ask anyone if I could pay it down or pay it off or do any negotiation with the lender about that. I just went ahead and did it. And it has worked out very, very well.

 

[Floridatennisplayer]

We are turning 63 in March. Almost to the finish line!!!!

Built our first home in 1981 and paid it off in 1996. Sold it and built another new home in 2004. Paid off in 2014. Also purchased for cash a Florida condo in the same year. So no mortgage. Nothing wrong with taking one into retirement but I’m adverse to it.

Plan to retire next March (2019) and pay my own way for a year out of cash savings and then take SS in 24 months at 65 to match up with Medicare.

 

[flintnational]

Social Security - We are 57 and 58. I am not sure when we will take SS. I am leaning toward FRA or at least 65 to max ACA subsidies.

Mortgage - We paid off the house prior to retirement.

 

[NYEXPAT]

SS- Started collecting at age 62, my then 10 year old and newborn started collecting as well. When I hit FRA I will cancel mine and the kids will continue theirs. At age 70 I will reapply for the higher benefit as my wife is only 36 and can probably use the higher survivor benefit.

MTGE- retired at 33 with a large mortgage, offloaded that in a divorce years later. 2001 took a liars loan for $300,000, flipped it 3 years later and moved to Peru. 2005 took out a 4 year builders loan at 14.5% interest for a rental apartment that was returning 32%/year. Paid that off when I was able to get my money out of the USA.

I live in one of those weird places where it is cheaper to rent then to own. I have been renting for the past 13 yrs and it is great when the USD is strong and not so great when the PEN is strong. On balance it was the right decision at the time. Right now I could buy my 3 br/2bth apartment for $220,000 but my rent is only $787.50.

Thank God for dumb tourists!

 

[omni550]

SS at 70.

Got a mortgage to buy FL condo 3 yrs ago (when I'd been retired for 8 yrs). Didn't want to pull entire purchase amount out of tIRAs in one fell swoop and get stuck paying the resulting high taxes. Plus the 2.89% interest rate was a bargain.

omni

 

[travelover]

This is great - the SS and pay off the mortgage questions all in one thread.

 

[Moemg]

Paid of mortgage eleven years before retirement.Started SS at 63 after losing a huge amount in the recession .I do have longevity but I have a chronic disease .

 

[pb4uski]

How did a 9 month old thread suddenly come back to life?

 

[AlbaCrush]

Retired at 50.

I still had two years left on my mortgage when I retired. I had the money to pay off my mortgage, but I decided to wait. I wanted to discipline myself to live off my pension with the mortgage. I had no problem paying it and my house will be paid off in three months.

I plan on drawing my SS at 62 and DW at 65.

 

[joeea]

Social Security:
- I'm 63, my wife is 62
- I'm retired. Wife plans to work for 3 more years or so
- We don't need the SS now
- With one (relatively low) income, we qualify for ACA subsidies. That saves us at least $5k per year
- Our current plan is to both wait until 70 to claim SS benefits.
- According to my math, delaying will maximize our long-term benefits as long as I live until 83 or older.
- Longevity runs in my family (both parents are still around at 86)
- We have never smoked
- I'm currently undergoing cancer treatments.
- We review our SS plans every year. If my prognosis unexpectedly worsens, it may change our benefit claiming plans

Mortgage
- Our primary residence has been paid off for a long time (before I knew anything about retirement planning or investing)
- Our weekend/vacation/eventual retirement home has a mortgage at 3.875%
- Our plan is to sell the primary and move to our other home once my wife decides to retire
- Currently we don't plan to use the proceeds from the sale of our first home to pay off the second home
- We will revisit that decision when the proper time comes