Social Security and Paid-off Mortgages?

[gayl]

Left government job @ 50 when (1) eligible for lifetime group health insurance (2) mortgage paid off

Will take SSA at 70 when WEP deduction finally is larger than SSA benefit.

Isn't it amazing how each new group of retirees have the same basic questions!

 

[travelover]

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

Faulty wooden stake?

 

[Montecfo]

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!

NYEXPAT-

Lots of interesting info in that response! Enjoyed it.

 

[Montecfo]

Will likely pay off small mortgage in the next few years due to reduced tax benefit.

No clear plan on when to take SS, but probably at FRA or later. If I feel we need the money, we will take it earlier. IMHO, there is no clear answer on when you should take it, since none of us knows the payback period.

 

[DektolMan]

Paid off mortgage in 99, retire in 2006, wife will take SS in 2022 at FRA, I'll take SS at 70 in 2025. Of course that could change depending on the markets.

 

[NYEXPAT]

NYEXPAT-

Lots of interesting info in that response! Enjoyed it.

Thank's, Do not like to share to much, you caught me on a charitable day!

 

[eytonxav]

Mortgage paid off many years before retiring at 63, am 68.5 now and will begin SS this month.

 

[Ronstar]

Paid off mortgage 14 years before er
Plan on taking ss at FRA (8 years after er)

 

[Mr._Graybeard]

We paid off our mortgage in about 1995. We had planned on applying for SS at 66, but we may put that off now in favor of converting IRA funds to Roth or other after-tax funds.

 

[socaldonnan]

We paid off our mortgage about six years before retiring (2014). We had a low mortgage balance and I tried to refi but the mortgage company wouldn't budge. I then asked what the pay off balance was, that's when the person on the other end wanted to discuss my options. I said you didn't want to discuss my options before so I'll be paying off my mortgage and wiring the payoff by tomorrow morning which is what we did. I then turned around and deposited that monthly "mortgage payment" into mutual funds. I chose to take my SS at 63 about 2.5 yrs ago. I took early retiremement/buyout. Since I was no longer paying into the system it wasn't going to be gaining much as far as I could see by the time I hit FRA this year. DH and I decided a bird in the hand and though I have very good health one never knows what the future holds. DH chose to wait until his FRA. It's a decision that worked for us.

 

[PERSonalTime]

Gayl, what do you mean by "Will take SSA at 70 when WEP deduction finally is larger than SSA benefit"?

Do you mean you wouldn't get a SSA benefit? Btw, what kind of j*b did you use to have?

 

[skipro33]

Paid off mortgage at age 45, house burned down at the top of the housing bubble in 2006 and used the insurance money to build a very large log home that is also mortgage free. Retired at 56, living on my pension take-home of $4,500 a month. I'll take my SS of approx $2,000 a month this year at 62 for a nice raise and DW will take hers at FRA of approx $1,400 4 years later. 4 years after that, I'll take the RMD on my IRA, my first time to draw on those, of approx $30,000 a year. (depending how the market does between now and then) Unless an emergency comes up, I figure I won't be needing my IRA capital. That and the house will be what I leave my kids I guess...

 

[joeea]

I chose to take my SS at 63 about 2.5 yrs ago. I took early retiremement/buyout. Since I was no longer paying into the system it wasn't going to be gaining much as far as I could see by the time I hit FRA this year. DH and I decided a bird in the hand and though I have very good health one never knows what the future holds. DH chose to wait until his FRA. It's a decision that worked for us.

Just curious - why bird in hand for you, but not bird in hand for your husband?

 

[socaldonnan]

Just curious - why bird in hand for you, but not bird in hand for your husband?

DH was offered a buyout about ten months before he reached FRA at the same time I decided to retire early. We both decided that since he was less than a year from FRA, he might as well wait until then to take his SS. I on the other hand was 3 years away.

 

[jimnjana]

We have a mortgage and are in no hurry to pay it off. SS for DW is likely at FRA in a few yrs. My SS is still at least nine years in the future.