Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-07-2008, 09:57 PM   #21
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by Moemg View Post
For two reasons one I'm single so no survivor to worry about and second since I do a straight 4% my cash flow will be less and even though I do not use all of it I like it available now while I'm younger and can still travel .
There is something to be said for optimizing cash flow when you are young(ish ) and healthy.
__________________

__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-07-2008, 09:59 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Did ya really need the 'young' and 'healthy' qualifiers
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 10-07-2008, 10:38 PM   #23
Thinks s/he gets paid by the post
Finance Dave's Avatar
 
Join Date: Mar 2007
Posts: 1,046
Quote:
Originally Posted by Rich_in_Tampa View Post
Isn't the increase in benefits for leaving it in something like 7% bump per year, and this in a market that's down 20%+?
The exact % reduction for taking SS early varies based on your "normal" retirement age. But essentially it's 5/9 of 1% per month for the first 36 months, and 5/12 of 1% for all months over 36. So if your normal retirement age is 65, and you take it at 62, that's 36 months x 5/9 = 20%...or about 6.6% per year. If your normal age is 67 and you take it at 62, then it's (36 x 5/9) + (24 x 5/12) = 30%, or 6% per year.

There are many factors to consider when deciding when to take it.
1) Can you earn more than this by taking the money and reinvesting it? Perhaps.
2) What if you don't think you'll live to full retirement age? Then you better take it early unless you are looking at spousal complexities.
3) If you take early, you get benefits for a higher number of years. Using this example Should You Delay Your Social Security Benefits? : Moolanomy it took 12 years just to break even....will you live that long?
4) Here's another article that talks about the spousal considerations Make the Most of Social Security - Kiplinger.com

In summary, it's not as simple a decision as some people make it out to be. Each person's circumstances are different.



Dave
__________________
Finance Dave is offline   Reply With Quote
Old 10-07-2008, 11:10 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
The only part I needed to see was that I'd be in my mid to late 80's before I broke even between taking it early and deferring withdrawals vs taking it late.

Good enough.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 10-07-2008, 11:11 PM   #25
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Always planned to take SS at 62. Current market situation only reinforces my decision. For me it slows the IRA (cash) "burn rate" and reduces taxes.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 10-08-2008, 08:20 AM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Quote:
Originally Posted by Moemg View Post
I was wondering with the markets tanking if anybody is changing their opinions on when they are taking SS . I am currently leaning toward 62 rather than waiting till 66. Anybody else ?
long range plan is to take it at age 62, invest most of it into some sort of conservative income generator, and have some fun with the rest.
my full SS age is 66 yr 8 mo, so i can do a lot with that for 4 yr 8 mo. [edited to correct data]
my marital status at age 62 will be a big factor, methinks. I will decide then.
markets tanking now is not an issue.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 10-08-2008, 08:28 AM   #27
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by freebird5825 View Post
my full SS age is 68 yr 7 mo, so i can do a lot with that for 6+ yrs.
How so? I didn't think anyone's full retirement age was above 67. Yet.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is online now   Reply With Quote
Old 10-08-2008, 08:46 AM   #28
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
A little tricky here - plan to keep working part time after ESR, and have to consider that my SS would be taxed heavily if I took it while receiving earned income. And, if I go for it early, it affects my DW's spousal benefit base amount, too -- not just my "breakeven" age of death.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 10-08-2008, 09:10 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Quote:
Originally Posted by ziggy29 View Post
How so? I didn't think anyone's full retirement age was above 67. Yet.
sorry, brain f*rt and too many numbers in my head...age 66 yr 8 mos, right from my SS statement. i fixed my prev post.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 10-08-2008, 09:43 AM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,194
Hey guys, this is not an issue. You take it at age 62, and at age whatever, you pay it back, withdraw your app and start over at the new rate. Best of both worlds. Am I missing something?
__________________
Al
TromboneAl is offline   Reply With Quote
Old 10-08-2008, 10:08 AM   #31
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
Quote:
Originally Posted by TromboneAl View Post
Hey guys, this is not an issue. You take it at age 62, and at age whatever, you pay it back, withdraw your app and start over at the new rate. Best of both worlds. Am I missing something?
No!
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 10-08-2008, 10:10 AM   #32
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,065
Quote:
Originally Posted by TromboneAl View Post
Am I missing something?
Tax implications?
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 10-08-2008, 10:12 AM   #33
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by TromboneAl View Post
Hey guys, this is not an issue. You take it at age 62, and at age whatever, you pay it back, withdraw your app and start over at the new rate. Best of both worlds. Am I missing something?
You're assuming that we're going to have enough in our IRAs and 401Ks to not need Social Security -- which seemed a lot more likely about a year ago...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is online now   Reply With Quote
Old 10-08-2008, 10:16 AM   #34
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,065
Quote:
Originally Posted by ziggy29 View Post
You're assuming that we're going to have enough in our IRAs and 401Ks to not need Social Security -- which seemed a lot more likely about a year ago...
Yep.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 10-08-2008, 10:21 AM   #35
Thinks s/he gets paid by the post
 
Join Date: Mar 2007
Posts: 3,323
I saw a recent study that showed a graph that the benefits of waiting really begin at age 78. Of course, if you take it at 62 and reinvest--and when the market turns up as it will eventually--you might do better than waiting until age 70.
__________________
Please consider adopting a rescue animal. So very many need a furr-ever home and someone to love them! And if we all spay/neuter our pets there won't be an overpopulation to put to death.
Orchidflower is offline   Reply With Quote
Old 10-08-2008, 11:21 AM   #36
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by TromboneAl View Post
Hey guys, this is not an issue. You take it at age 62, and at age whatever, you pay it back, withdraw your app and start over at the new rate. Best of both worlds. Am I missing something?
Like maybe they'll change the law? Kind of a glaring loophole, I'd guess.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 10-08-2008, 11:28 AM   #37
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
Quote:
Originally Posted by ziggy29 View Post
You're assuming that we're going to have enough in our IRAs and 401Ks to not need Social Security -- which seemed a lot more likely about a year ago...
Quote:
FIRE Clock: broken. It only knows how to go in reverse.
Sorry about your broken clock.
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Old 10-08-2008, 11:47 AM   #38
Recycles dryer sheets
 
Join Date: Oct 2003
Location: Combined Locks
Posts: 62
Send a message via MSN to rjk514
If past age 62 and yet to draw on SS by your choice, just keep an eye on the Bozo's in Washington and if they make any move to change SS immediately apply as it will take them more than 3 months
to change anything and it takes 3 mo. to start receiving checks after you apply...by the time the change takes place you will be receiving your SS payments
__________________
RJ
rjk514 is offline   Reply With Quote
Old 10-08-2008, 11:49 AM   #39
Thinks s/he gets paid by the post
 
Join Date: Mar 2007
Posts: 3,323
I heard that one loud and clear, rjk514. Will do!
__________________
Please consider adopting a rescue animal. So very many need a furr-ever home and someone to love them! And if we all spay/neuter our pets there won't be an overpopulation to put to death.
Orchidflower is offline   Reply With Quote
Old 10-08-2008, 07:25 PM   #40
Recycles dryer sheets
 
Join Date: Aug 2005
Posts: 480
Quote:
Originally Posted by Bikerdude View Post
Always planned to take SS at 62. Current market situation only reinforces my decision. For me it slows the IRA (cash) "burn rate" and reduces taxes.
For me, both true and especially the tax issue. I find it hard to imagine that SS will not be taxed/means tested more in the future than it is today. If I'm wrong, pay it back and start over (if still allowed).
__________________

__________________
Gearhead Jim is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Is anyone else rethinking the Managed Payout funds? kat FIRE and Money 2 07-20-2008 11:19 AM
40 yr old - rethinking priorities in life willowbeezer Hi, I am... 16 05-12-2008 03:56 AM
Rethinking Retirement??? bots2019 FIRE and Money 53 07-25-2007 05:45 PM
Rethinking International Investments Berkshire_Bull Other topics 8 01-06-2005 08:46 AM
Rethinking my approach -- comments? brewer12345 FIRE and Money 32 10-27-2004 04:48 AM

 

 
All times are GMT -6. The time now is 06:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.