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Old 10-12-2011, 09:34 PM   #21
Thinks s/he gets paid by the post
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I'm floored when well educated people don't get the concept of Present Value and the time-value-of-money. Also bemused by people who don't understand what it means when the SSA itself says the payments are actuarially identical, whether you start at 62 or at 70.
The interesting part of this for me is that I'm not as concerned about break-even or actuarial advantage one way or another. I have (hope to have) enough private retirement assets to live on without SS to at least age 70. If I wait, I gain an inflation indexed income that provides better security against outliving my assets. It I take it early, I am responsible for investing or annuitizing privately or what ever I choose to do to accomplish the same goal.

If I die before age 70, then I left money in the account, but since I'll be dead, I won't care that much. My heirs will get a little less, but then since I'm dying early there will be more there and sooner than they should have expected. I care much less about this scenario than I do about the alternative of living to a very old age.

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Old 10-12-2011, 10:42 PM   #22
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Originally Posted by yakers View Post
Can you tell me more about the WEP GPO related issues to taking SS? Can't find useful information on the web. DW retired as a teacher with a modest pension, I am a Federal (CSRS) retiree. DW will get something like $100 to $200 a month from SS since she had ten years teaching in parochial schools years ago where they paid into SS. She is of the opinion that its always better to wait for SS and fortunately we do not need it for survival so I don't argue but I would like to understand the situation better.
Hi yakers,

It sounds like our situation is different from yours. I'm covered by SS. DW has a gov't pension from a job not covered by SS and will collect close to zero SS on her own record due to WEP and no SS on my record due to GPO. My interest is in providing for her well being should I predecease her. Therefore I started my SS at 62 which keeps my FIRE portfolio larger (by the accumulated amount of my SS) and available to her should I be the first to croak.

I wrote about the strategy here: Retiring early: Should I tap Social Security or savings?

In your case, you are not under SS, a different situation.

PM me if you'd like to discuss further.

"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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Old 10-13-2011, 01:37 PM   #23
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Growing older, we have pretty much the same situation. I don't need SS until I turn 69 or so and my wife is 5 years younger. Our payout from selling an asset runs through 2018, just past when I turn 69. We have rental income that might continue forever or might stop next month; we are trying to negotiate a 7 to 10 year lease with a purchase option at the end; no one knows what values will do, but it should be worth around $700,000 or so then. We can live just fine on those 2 streams of income and even continue to save money. Right now, our investment accounts are spinning off about $50,000 a year, about 60% of which is tax free. That number should be up to $65,000 or $70,000 by 2018 if we just leave everything alone. We have some equities and some zero coupons that aren't included in that. We have another piece of vacant property that is listed for $500,000 but realistically should sell in a 2 to 3 year time span for maybe $300,000 to $350,000. We have 2 houses with a relatively small mortgage on just one that will be paid off in about 6 years. We have no debt on anythig else. Everytime I actually this in writing, I can't figure out exactly why I'm still working. Health insurance, I guess, more than anything else.
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Old 10-13-2011, 04:50 PM   #24
Thinks s/he gets paid by the post
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Originally Posted by 67walkon View Post
Everytime I actually this in writing, I can't figure out exactly why I'm still working.
My thought exactly. Good for you!
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
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Old 10-15-2011, 03:01 PM   #25
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The reason I plan to tap SS at 62 instead of waiting is so my personal accounts can remain high enough to pay for assisted living if needed. By waiting until 65 or later, I chew up more of my 401K/457 accounts but end up with a fatter bottom line, to be sure, but at the cost of no longer having the cash to pay for my self financed long term care.
My plan is to supplement my pension with the 401K/457 until 62 when SS kicks in and there's enough left in my savings to cover a catastrophic event that could strike.

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