Present value of Social Security

[ERD50]

Huh? Why would I want to that? I'm only interested in the PRESENT value. Presently, I'm 49, so 2020 is the earliest I can collect SS.

That exercise might be applicable to you, if you're 62 now, and believe that you would live to 92 or beyond.

Sam, you are right. This exercise was not meant to be applicable to your situation. It was to explain that for someone age 62, retiring at 62 and wanting to be prepared for age 92 or beyond, the SS payment is equivalent to ~ 25x the nest egg. We were trying to figure why Bogle used a 14x multiplier, and to get a baseline number with a simpler case.

Your multiplier is clearly less. Your equivalent nest egg would not be paying out that cola'd $10,0000 for 13 years. Big diff.

You should be able to run your scenario in Firecalc. In my view, the diff in the starting nest egg required ( with and w/o SS) represents the pv of those future SS payments.

-ERD50