Social Security DO-OVER May Disappear

[youbet]

Ha,

Are you paying back with immediate restart? Or paying back and restarting sometime later?

[haha]

Quote:

Originally Posted by youbet Ha, Are you paying back with immediate restart? Or paying back and restarting sometime later?

The clerk did not offer me the option of immediately restarting. She said SS will send me a bill for what I have received, and that I should pay that invoice and "wait a bit for it to work through the system" before applying again. Practically speaking, I will try to figure out the interactions between Medicare Pt B premium and SS being withdrawn vs. active payments and perhaps I will start again in time to get payments in December, if they will let me. Otherwise I will wait until I am 70, god willing.

I hope anyone with knowledge about these interactions will post in this thread, or start another.

I did get the impression that this young woman, who was just luck of the draw when I came in and took a number, was completely familiar with the withdrawal of application process. She took a look at me and asked pointedly if I had the money to repay. Basically I don't look like I have the money to buy a good cup of coffee.

Ha

[youbet]

Quote:

Originally Posted by haha The clerk did not offer me the option of immediately restarting. She said SS will send me a bill for what I have received, and that I should pay that invoice and "wait a bit for it to work through the system" before applying again. Practically speaking, I will try to figure out the interactions between Medicare Pt B premium and SS being withdrawn vs. active payments and perhaps I will start again in time to get payments in December, if they will let me. Otherwise I will wait until I am 70, god willing. I hope anyone with knowledge about these interactions will post in this thread, or start another. I did get the impression that this young woman, who was just luck of the draw when I came in and took a number, was completely familiar with the withdrawal of application process. She took a look at me and asked pointedly if I had the money to repay. Basically I don't look like I have the money to buy a good cup of coffee. Ha

OK, thanks.

Restarting ASAP, which apparently can take a few months, is what I meant by immediate restart, as opposed to waiting until some future year such as when you reach age 70.

I'm glad the process, greased by having a knowledgeable clerk to help, went easily for you. I hope the tax calculations go the same way........

I started SS one yr ago at 62 yo. I've been running some scenarios considering either repaying now and delaying restart or repaying later (at FRA) and restarting immediately. I've also been looking at just suspending for a few years and then restarting with the higher amount. Because DW cannot collect any of my SS due to the GPO provision, none of this provides her with any additional protection against outliving our assets. Taking SS early, as is my current case, does as it allows us to spend less from our retirement portfolio. Makes it a tough decision........

[haha]

Quote:

Originally Posted by youbet OK, thanks. I started SS one yr ago at 62 yo. I've been running some scenarios considering either repaying now and delaying restart or repaying later (at FRA) and restarting immediately.

The only thing I think of is that if you are seriously intersted in doing this, it may disappear if you don't act soon. OTOH, surely sometime before long there will be low risk highly attractive investment opportunities. So the current cash flow contribution from SS might be helpful.

At my age I only like shooting fish in a barrel, not interested in "long term market returns".

Ha

[youbet]

Quote:

Originally Posted by haha The only thing I think of is that if you are seriously intersted in doing this, it may disappear if you don't act soon. OTOH, surely sometime before long there will be low risk highly attractive investment opportunities. At my age I only like shooting fish in a barrel, not interested in "long term market returns". Ha

Most likely I'll stay as-is. The goal is to provide DW with some insurance against outliving our $$$ should I croak early and not be there to manage things. Unfortunately, she can't collect on my SS so no protection for her to be gained by repaying or suspending. However, while I'm collecting SS, it reduces our portfolio withdrawals dollar for dollar so at least she'd have a larger portfolio to work with, but not an annuity like SS provides.

I agree that if I wanted to repay, now is the time to do it since things are likely to change in the future.

[haha]

Quote:

Originally Posted by youbet Most likely I'll stay as-is. The goal is to provide DW with some insurance against outliving our $$$ should I croak early and not be there to manage things.

That is simiar to my goal- not for a wife, but to give me some relatively safe amount that neither I nor Bernanke can screw up.

Ha

[haha]

So far smooth as silk, no drama. I got my invoice for complete payback, the amount appears to be correct, I have the money available and my check will be in the mail on Monday.

I was nervous about this based on all the warnings on BogleHeads and elsewhere, but so far everyone I have dealt with has been well informed and happy to meet my needs.

I feel good to be buying a US govt COLA annuity at this price, whether I live to 100 or get hit by a bus this afternoon. Which unfortunately is disturbingly frequent around here and in Portland too.

I never would have started payments prior to age 70, but I was worried about liquidity during the '08 crash. Overall, unless there are special circumstances, I feel that just waiting until 70 is more secure than deliberately starting early and planning to re-do. Especially since some seem to be framing this strategy as a fat-cat fiddle.

Ha

[haha]

Two months now since I filed form 521 to pay back SS. I did get the repayment invoice from them about one month ago, and paid it. Then I heard nothing, and could find out nothing either visiting or calling. As of two weeks ago, the check had not yet cleared. I would say that communication has been spotty at best.

But today, which is on the timetable that my SS payments have been dropping into my account, I got a deposit of $1.40, rather than the usual monthly payment amount. I figure that has to be some overpayment return, or small credit balance to square my account as if I had never started payments.

Still no investment opportunities that appeal to me, so I will let it ride until age 70 to max out my monthly SS payment.

Thinking of Ben Stein's paradigm I have to feel good. I have made totally irresponsible decisions over and over, and have had my share of bad luck, but although I won't be living on a golf course I have only one more task to nail down a retirement as free from financial worries as I can get it- find and buy a low cost but nice condo in a building and neighborhood that meets my needs.

Ha

[FIRE'd@51]

Quote:

Originally Posted by haha But today, which is on schedule that my SS payments have been dropping into my account, I got a deposit of $1.40, rather than the usual monthly payment amount. I figure that has to be some some overpayment return, or small credit balance to square my account as if I had never started payments.

Am I interpreting this correctly that you kept receiving your regular SS payments for 2 months since you filed to stop?

[haha]

Quote:

Originally Posted by FIRE'd@51 Am I interpreting this correctly that you kept receiving your regular SS payments for 2 months since you filed to stop?

Not really. Payments are received with a one month lag, so for example you get the July payment in August, August payment in September, September payment in October, etc. So my SS enrollment apparently stopped immediately, but I got one more (August) payment in arrears in September.

Ha

[FIRE'd@51]

Quote:

Originally Posted by haha Not really. Payments are received with a one month lag, so for example you get the July payment in August, August payment in September, September payment in October, etc. So my SS enrollment apparently stopped immediately, but I got one more (August) payment in arrears in September.

Thanks. This would makes sense since they presumably wouldn't make any more payments after they sent you your invoice for the payback.

[haha]

I got letter from SS today saying that my payback and withdrawal of applicaiton has been accepted. So I'll just wait until a few months ahead of my birthday next year and apply again for benefits.

Took just a little over 2 months to complete, but so far no real hassle or difficulty.

Ha