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Re: SS at 62 or 65
Old 01-15-2006, 04:48 PM   #41
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Re: SS at 62 or 65

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Originally Posted by tryan
These is key for us ... as my DW will likely outlive me by 10+ years.* So I always plan to take SS at late a feasible.* Just put it in the bond part of the wad (as 14 x annual payout per Bogel's recommendation) and forget about it.
Trying to capitalize the income stream seems wrong-headed to me, but if one is going to do that, given today's low interest rates I think14x is much too low for a COLA annuity backed by the US government with 100% jt and survivor features. IMO, it should conservatively be valued at>20x; but probably <25x.

Ha
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Re: SS at 62 or 65
Old 01-15-2006, 04:53 PM   #42
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Re: SS at 62 or 65

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it should conservatively be valued at>20x; but probably <25x.
My guess is Bogel figures you will not collect a pension or SS for more than 14 years. Hopefully we'll all collect for 25 and beyond.
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Re: SS at 62 or 65
Old 01-15-2006, 06:01 PM   #43
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Re: SS at 62 or 65

Dh and I had this argument for at least a year before he turned 62. He INSISTED that he was going to take it because everyone told him if he waited he'd never live long enough to break even. I kept telling him we didn't need the money and to wait. He wouldn't listen to me and took it at 62, not 6 months later he was freaking out that he's going to make too much money at his part time job (that he refuses to give up) and they are going to take money away. Thankfully when I take mine he will end up getting the spousal extra.
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Re: SS at 62 or 65
Old 01-19-2006, 06:08 PM   #44
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Re: SS at 62 or 65

I hope he wasn't waiting until 65 to take his higher benefits.

January 19, 2006
RESTON, Va. - Wilson Pickett, the soul pioneer best known for the fiery hits "Mustang Sally" and "In The Midnight Hour," died of a heart attack Thursday, according to his management company. He was 64.
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Re: SS at 62 or 65
Old 01-19-2006, 07:28 PM   #45
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Re: SS at 62 or 65

Quote:
Originally Posted by WhodaThunkit
If you're interested in an informed answer to this question, read the Scott Burns material mentioned above, some earlier posts to this forum by "New Thinking" and the new book "Retire Early?* Make the Smart Choices" by Steven Silbiger.
I ordered the Silberger book from my library. It came today and I agree with Whoda that it is very complete and helpful. It didnít change my mind, as I already planned to wait, but it does make me feel more comfortable with that (provisional) plan. I may buy the book to have it available as a reference.

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Re: SS at 62 or 65
Old 04-30-2006, 03:26 PM   #46
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Re: SS at 62 or 65

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Originally Posted by HaHa
It didnít change my mind, as I already planned to wait, but it does make me feel more comfortable
Ha
Ha,

I just got the Silbiger book and read it this weekend.* What was interesting is that I thought I could not "afford" to wait till my/DW full retirement age (66) to draw SS due to our planned retirement at age 60.* Crunching the numbers through the five tools I use to cross check my "assumptions" showed that we could certainly wait to draw the maximum.* In all test cases, with all tools, it maximized the residual estate value at the end of our plan.

Yes, there is always the question of "will SS be there for my retirement".* Since DW/me were born in '48, I believe that we will be "in the ground" before major changes (if any) are made to the SS system.* Regardless of that risk, we're fortunate to have assets that will cover 100% of our current net income till our respective forecast mortality table entry.* What the "Silbiger Suggestion" does is extend our plan to age 100.* We we near that goal with our current plan, but this change more than assures that target age.*

I like the idea of taking some of "our" money "off the table" by drawing down a bit more at early retirement, and to have an "annuity" (e.g. SS) later in life when we may not be in a mental condition to make these kind of decisions (no, I don't believe in "financial consultants" - but that's another story...)* You can certainly make the argument for making more money "in the market" than SS will provide, but others can (and have) make the opposite argument of "loosing due to the market".

Since we're leaving our remaining estate to charity, it just may wind up that if we "beat the system"; some folks that "need it the most" (per our future bequests) will share in our "windfall".

Anyway, that's my story (and I'm sticking to it!)*

- Ron
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