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Old 02-22-2014, 01:35 PM   #21
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Interesting thread: My variables would hinge on the following.
1. Means testing by the political leaders. This is a crap shoot.
2. Taxation results of getting max SS at 70 and also receiving RMD simultaneously. I suppose you could remedy this by drawing down IRAs prior to 70.5 or ROTH conversions.
3. Longevity based on familial history.
4. Spousal survivor SS benefits.

All of these are different for everybody, so you have to do the math. I'm leaning toward waiting until I'm 70 for spousal survivor benefits.
All good points. I have been looking at this and with a real return of 4% or so starting at 62 appears to be the winner. That said I may wait until closer to 70. The reason being if something; market, medical, etc. were to draw my funds down... 4K a month > living off 2K a month.

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Old 02-22-2014, 08:24 PM   #22
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So here's our situation. Wife and I same age, me slightly healthier than her. At 62 I can retire removing 6 percent from saving (primarily 60-40 balanced fund that has averaged 8percent over the las 20 years). Or I can take ss at 62 and only take 4 percent out of saving. I've read most of the ss threads and still haven't quite figured out which is best.
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Old 02-22-2014, 09:31 PM   #23
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This is a very enlightening thread for me. I have been planning to start SS during year 66. However now I have added a line to my spreadsheet showing how much I would have to put aside from my savings to match the SS income until 70. Beginning to sound like a better idea to set aside the match money from my portfolio (and assume it is not there for withdrawal calculations) and then start SS at 70. Then just try to stay healthy (which seems like a good idea anyway). Are others here taking that approach?
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Old 02-23-2014, 10:47 AM   #24
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So here's our situation. Wife and I same age, me slightly healthier than her. At 62 I can retire removing 6 percent from saving (primarily 60-40 balanced fund that has averaged 8percent over the las 20 years). Or I can take ss at 62 and only take 4 percent out of saving. I've read most of the ss threads and still haven't quite figured out which is best.
You can run that through FIRECalc for one opinion. Many of us are spending 6%+ early on and then reducing that as SS comes on line, the kids graduate from college, and the mortgage is paid off. Needless to say, a big market dip while you're pulling 10% out of your portfolio in a year could be a disaster. So you might want more in cash and short term bonds during those years and then a normal long term portfolio AA when the withdrawal rate goes down.
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Old 02-23-2014, 11:09 AM   #25
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We ran the Fidelity RIP and our own spreadsheets with different SS scenarios. The RIP gives you a year by year cash flow and ending balance statement.

As advertised, SS really is actuarially neutral. For longevity insurance, delaying was better but not by a significant percent of total ending portfolio value for us. For income and portfolio value smoothing, and concerns about increased taxes and benefit cuts, 62 works better.

If we are still working part time at 62, we'll delay due to tax reasons.

There is no right answer for every household. You can't optimize for every factor. Longevity insurance is just one of many possible factors to consider among income smoothing, taxes, benefit cut probabilities, etc.
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Old 02-23-2014, 11:15 AM   #26
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We are both planning on delaying SS until age 70. Just in case one or both of us lives to a crazy old age, it becomes good longevity insurance. Of course lots of things can change between now and 70, but for now, that is what we have planned for in all of our forecasting models.
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Old 02-23-2014, 01:54 PM   #27
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Interesting Morningstar paper, When to Claim Social Security Retirement Benefits
http://corporate.morningstar.com/ib/...ntBenefits.pdf

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Old 02-23-2014, 04:38 PM   #28
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Interesting Morningstar paper, When to Claim Social Security Retirement Benefits
http://corporate.morningstar.com/ib/...ntBenefits.pdf

Bob
What's interesting in that article is they compared results based on your portfolio rate of returns. So if you stay well diversified (60-40 stock bonds) and average 7-8percent, it becomes more of a wash when you start SS.
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Old 02-24-2014, 06:37 AM   #29
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Everyone has to do what they think is right for them. But consider my neighbor just died at 59 and I met a couple that had 14 people die over the winter on there block. It also depends on if you will or will not run out of money.
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Old 02-24-2014, 10:43 AM   #30
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Everyone has to do what they think is right for them. But consider my neighbor just died at 59 and I met a couple that had 14 people die over the winter on there block. It also depends on if you will or will not run out of money.
My husband and I keep hearing of friends, or acquaintances, who were our age, who died this year from heart attacks, strokes or brain aneurysms. All seemed to be in fairly good health and had sudden deaths. It's sort of unnerving.
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Old 02-24-2014, 10:44 AM   #31
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I am 18 months older than my DH and our monthly/annual SS benefits are about the same. I am currently 62. We have no pensions.

Our plan is for me to claim my SS benefits at my full retirement age of 66. My DH will file and suspend at 66 and claim 50% of my benefits, and then claim 100% of his at age 70. Meanwhile we are withdrawing about 5-6% of our AA annually, which we know is considered a "high" withdrawal rate. We figure this will give us the best options all around and after 70 we'll have more money coming in than we'll know what to do with. At least....that's the plan.
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Old 02-24-2014, 09:48 PM   #32
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Ally I had to laugh when I read this line by you; "I tried staying on the line with the SSA, but gee whiz! I can't stay on the line all day."
I was recently on hold for 48 min the other day waiting to speak with someone at SSA. My local SSA office personnel were uninformed and obnoxious . I had to wait a long time when I called the Nat'l 800 number but when I got through the SSA representative was courteous, very knowledgeable and very helpful. I was impressed and told the the lady I spoke with so.
Read part of a book and did a few sudoku puzzles while I was on hold.
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Old 02-24-2014, 11:29 PM   #33
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Thanks, haha, I was at work and so couldn't sit on the phone like that. I decided to ask you all and sure enough, got some great responses.
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Old 02-25-2014, 06:24 AM   #34
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Ally I had to laugh when I read this line by you; "I tried staying on the line with the SSA, but gee whiz! I can't stay on the line all day."
I was recently on hold for 48 min the other day waiting to speak with someone at SSA. My local SSA office personnel were uninformed and obnoxious . I had to wait a long time when I called the Nat'l 800 number but when I got through the SSA representative was courteous, very knowledgeable and very helpful. I was impressed and told the the lady I spoke with so.
Read part of a book and did a few sudoku puzzles while I was on hold.
Wonder if you reported the people you talked to? I get names whenever I talk to customer reps. I report them whenever I encounter bad or very good customer service. I also make it a point to refer to the "recorded conversation" for the bad ones. Bad Gov't employees are hard to get rid of, but not impossible. (I know, I did it)
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Old 02-25-2014, 11:05 AM   #35
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Wonder if you reported the people you talked to? I get names whenever I talk to customer reps. I report them whenever I encounter bad or very good customer service. I also make it a point to refer to the "recorded conversation" for the bad ones. Bad Gov't employees are hard to get rid of, but not impossible. (I know, I did it)
Great idea, but do you know how they find those calls. From my experience in back office processing, it's completely manual. Yes they have Billy Bob's calls recorded. What date and time did you call? Then someone listens to attempt to find your call. Of course that assumes they want to find the call. Not saying you shouldn't report them. I assume if they get a high number of complaints on Billy Bob they pay more attention. Many organizations listen in(real time) on new employees, or problems that have been reported.
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