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Old 03-15-2019, 06:06 AM   #21
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My advisor just suggested I file for SS, effective on my 64th birthday. They think a recession is coming in 2020 and this will reduce what I need to take out from my nestegg during the recovery. SS + an annuity coming due in Feb 2020, will cover the majority if not all of my expenses until tax torpedo time. (That is going to be an unavoidable headache!)

The difference will be about $400 a month and the catch up appears to be the magical 78 years of age. Any naysayers here?
You have an advisor making a recession prediction for next year?

And who suggests taking SS early so as not to reduce their assets under management? In spite of a breakeven at 78 years old?

I say nay.
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Old 03-15-2019, 06:16 AM   #22
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Originally Posted by OHjosh View Post
The $400 difference per month is SS at 64 vs. FRA. I have conflicting ideas about the advice. Of course the advisor cannot predict a recession. No one can. I cannot predict how long I might live, or live life with good health.
The point is you don't have to be able to predict a recession to take full advantage of selling off less of your nest egg at a low. You can react when it happens and it works just as well.

And in fact if you think the market is high now, selling off a little more of your nest egg while its high is better. "Sell High, Buy (or at least Hold) Low". So it's actually better to react than to predict.

I mean, this is like saying you don't want to sell a stock now because you think it's going to go down in the future. That makes no sense.

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To be honest, the driver for me is that I hate talking all my cash spending out of my nestegg right now. So why not take it now?
Since you asked the question, my answer is to learn to make logical decisions about your money, not emotional decisions.

When it comes down to it, $400 isn't much (would be more if you compared to taking at 70), and there are a lot of other factors you can't control (like your longevity and SS solvency), so do whatever you want.

But when you are trying to use some logic, like factoring in a recession, IMO you ought to be using the logic correctly, not in reverse. I blame your advisor for that. Is he paid a % of your assets under management? If so, he has an incentive to keep you from spending down your assets that may conflict with your best interests. Ask him why you shouldn't wait for the recession before taking SS.
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Old 03-15-2019, 06:23 AM   #23
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$400 a month is $4,800 a year. Doesnít seem that negligible......
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Old 03-15-2019, 07:00 AM   #24
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It's interesting that you decided to start your benefits at 62, but haven't figured out what you'll do with the money.

Care to talk about how you decided that 62 was the right start?
If I knew when I was going to die, the planning would be easy. Also what does the future hold for SS? Will it be means tested in the future?

The money will be used of coarse, it will mean I will not need to withdrawal from my IRA, or at least a reduced amount. So my breakeven date will change depending on my investment returns.
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Old 03-15-2019, 07:31 AM   #25
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And we're off ..............................
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Old 03-15-2019, 07:46 AM   #26
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DW and I both took SS at 62 and are still very hopeful we live long enough to regret the decision. Now it's time to book another trip. Courtesy of the US govt.
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Old 03-15-2019, 08:09 AM   #27
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DW and I both took SS at 62 and are still very hopeful we live long enough to regret the decision. Now it's time to book another trip. Courtesy of the US govt.
Thatís pretty much how I feel. Have a nice trip.
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Old 03-15-2019, 08:13 AM   #28
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I retired 12 years ago, but now I feel old. Iíll be 62 in May and went ahead and filed. Took about 5 minutes online and today I see that Iím approved. First check will be deposited July 24.

Iíve read all the threads about all the various scenarios about when to take the money. The wife has a pension so WEP affected some of the desisions, along with few in my family living much past 80.

Iím not sure what we will do with the extra, but we will think of something. Iíll have to check back to the ďblow that doughĒ thread.
I'm right there with you! I turn 62 in May and submitted my application a few weeks ago. All approved and check will be in the bank on July 24th also.

Between our pensions, retiree health care subsidy, and my SS we will now be covering 100%+ of our everyday spending. We also have my wife's SS that will kick in in a few years. Our nest egg will be our fun money and allow us to leave a little for the kids and grandkids hopefully.

I retired almost six years ago and after a few years I ended up having back surgery and problems which has put a damper on my physical abilities and it's not going to get any better. I know I'm not getting any younger so I decided to go with the early SS and enjoy it while I still can.
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Old 03-15-2019, 08:34 AM   #29
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I retired almost six years ago and after a few years I ended up having back surgery and problems which has put a damper on my physical abilities and it's not going to get any better. I know I'm not getting any younger so I decided to go with the early SS and enjoy it while I still can.
I'm a SS Early vs Late junkie on this forum. I read them all, even if the discussion says the same thing over and over. IMHO, this is the best argument for taking early. Just as we cannot predict the market, we cannot predict our health in a day, month or year. Enjoy while you can!
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Old 03-15-2019, 08:44 AM   #30
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I will draw my SS at FRA + 1, and DW will take hers at 62 (1.5 years time). DWs will just about cover her Healthcare (Sad really).

As per this calculator. https://opensocialsecurity.com/
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Old 03-15-2019, 08:44 AM   #31
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I've wasted way too much time thinking about SS, when to take, etc. Finally made the plan to have DW take at 62 and me whenever I decide to pull the trigger (I'm 66). We will use hers as vacation money and mine as insurance for her (well and more expensive trips too LOL)
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Old 03-15-2019, 08:48 AM   #32
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Congrats!

DH also just filed at 62 and will collect his first payment in June. I was amazed how easy it was to apply online. Although he was born, raised, and worked most of his life in the same state. One marriage, same address the past 30 years. So itís not like it was rocket science.

MY magical spreadsheet said 62 for DH and 65 for me was the optimal solution.....if we live past 86. Otherwise 62 for both of us was optimal. Given my maternal line historically has lived to 86-90, Iím opting to wait until 65. DH doesnít have quite the same longevity genes, but in the big picture for us, 62/62 or 62/65 were by far the best scenarios in all cases except living past 90. Regardless, it never made financial sense to delay us both....so his filing was the easy decision.
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Old 03-15-2019, 08:51 AM   #33
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Not sure who is best served- by taking SS now, you will reduce your opportunity to get more later, and you will reduce your amount withdrawn each year, thereby increasing what is left and assessed an advisory fee for your advisor. Guess it depends how you look at it, along with your need.
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Old 03-15-2019, 08:55 AM   #34
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I'm a SS Early vs Late junkie on this forum. I read them all, even if the discussion says the same thing over and over. IMHO, this is the best argument for taking early. Just as we cannot predict the market, we cannot predict our health in a day, month or year. Enjoy while you can!
Exactly! I also forgot to mention that I just went to the funeral for a friend who had only retired a little over a year ago and just turned 62 in November. ️ That tends to put things in perspective.
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Old 03-15-2019, 09:23 AM   #35
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I retired 12 years ago, but now I feel old. Iíll be 62 in May and went ahead and filed. Took about 5 minutes online and today I see that Iím approved. First check will be deposited July 24.

Iíve read all the threads about all the various scenarios about when to take the money. The wife has a pension so WEP affected some of the desisions, along with few in my family living much past 80.

Iím not sure what we will do with the extra, but we will think of something. Iíll have to check back to the ďblow that doughĒ thread.

Congrats on the SS. I'm pushing 64 and don't feel old. Possibly when I go on Medicare I'll self reflect about all the wisdom I've imparted on this world. Otherwise I am hanging with those younger than myself to keep the fountain of your alive.
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Old 03-15-2019, 09:45 AM   #36
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Filing on line was super easy for us, also and we filed at 62 last year.
DH family is not long lived, most died before 80 and the majority of my relatives died early to mid 80's.
I tested our spending to 100, just to be safe,(one relative lived to 100) and know we can spend more if we wish. We have our pensions at 100% survivor, and they cover our basic expenses.
I have gone through all of the calculators posted on the forum, read the SS posts frequently, and viewed multiple options.
This is the plan that is best for us, and I have no regrets.
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Old 03-15-2019, 10:16 AM   #37
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Exactly! I also forgot to mention that I just went to the funeral for a friend who had only retired a little over a year ago and just turned 62 in November. ️ That tends to put things in perspective.
Sorry for the loss of your friend. This past weekend I saw a skier down, next to a fence, with a few people gathered around. When I got up the lift and went back down, I saw ski patrol doing chest compressions on him, and then evacuating him. 2 days later they took him off life support. 40ish yr old guy, well-liked and respected fire chief at Atlantic Beach, with a family. Very sad and sobering. I may never forget that sight of ski patrol working on him, knowing what the outcome probably would be.

However, that has nothing to do with my social security situation, nor should your friend's death influence yours, IMO. Using that as a reason to take early is another emotional decision, and shouldn't be factored in.

I started to write more but it's just stuff I've written a dozen times in a dozen other threads.
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Old 03-15-2019, 10:54 AM   #38
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Congrats.
Managing ACA, so will wait at least until 65 y.o.


Ditto.
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Old 03-15-2019, 11:08 AM   #39
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Fundamentally when to take SS (for those with sufficient assets) the decision comes down to:

A. Do you view SS thru the lens of Longevity Insurance; or,

B. Do you view SS thru the lens have getting your money back.

Each is a personal decision; neither being right or wrong: just best for you.
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Old 03-15-2019, 11:36 AM   #40
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