Luck_Club
Full time employment: Posting here.
- Joined
- Dec 5, 2016
- Messages
- 733
I'm dumbfounded to figure this out, or too lazy to crunch the numbers. Lets say you have 35 credit years, but some years are low, and you are currently earning up to the maximums.
Assuming you are beyond the 2nd bend point, how do you calculate your impact of replacing a low income year with a higher income year of $100,000 per year each of the 3 years?
Assumption 2 is that your current benefit is $1,900 per month @ 62 if you stopped now (52).
Assumption 3 $48,000 could be put into retirement accounts earning $200 per month. If taxes are paid and realized as social security benefit it would cost a bit over 38% or $18,240 in tax.
Lets say for example the low years are $650, 2,000 and 5,000 that you want to replace. How much of a monthly dollar increase will you receive in your benefit for an extra 1, 2, and 3 years of work?
My gut is saying it isn't worth the extra time if it is just to boost the SS benefit. But I'm not sure how little it matters.
The real interest in this exercise is SS money, survivor benefits and the like are cash cows (guaranteed money) that should be fully fattened up before slaughter. Plus do to self employment I can realize income, expense income or defer income.
Assuming you are beyond the 2nd bend point, how do you calculate your impact of replacing a low income year with a higher income year of $100,000 per year each of the 3 years?
Assumption 2 is that your current benefit is $1,900 per month @ 62 if you stopped now (52).
Assumption 3 $48,000 could be put into retirement accounts earning $200 per month. If taxes are paid and realized as social security benefit it would cost a bit over 38% or $18,240 in tax.
Lets say for example the low years are $650, 2,000 and 5,000 that you want to replace. How much of a monthly dollar increase will you receive in your benefit for an extra 1, 2, and 3 years of work?
My gut is saying it isn't worth the extra time if it is just to boost the SS benefit. But I'm not sure how little it matters.
The real interest in this exercise is SS money, survivor benefits and the like are cash cows (guaranteed money) that should be fully fattened up before slaughter. Plus do to self employment I can realize income, expense income or defer income.