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Retiring vs. Stop Working
Old 09-05-2012, 11:56 AM   #61
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Retiring vs. Stop Working

Can someone give me advice on taking early SS retirement. I turn 62 in 2026. I turn 48 this December and start collecting my 30 year pension/medical coverage (w/3% COLA) the following month . I had a baby late (single parent) and will be spending the first decade of my retirement getting my son to adulthood. I've worked tirelessly for 30+ years and only looking to retire early to spend more time with my son and travel (rather than opt to work longer). How wide should this gap be between 48 and retirement age. I want to get while the getting is good and not wait for MORE money at a later age....... besides i think this kid might send me to an early go away. . I made many sacrafices early in life to get to this point. I think I'll be fine with an average income the first year of about 40k and increasing from there, not including the other two legs of my stool personal savings/investments that should bring it to 50k.
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Old 09-05-2012, 12:39 PM   #62
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Correct.
+1
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Old 09-05-2012, 12:45 PM   #63
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Can someone give me advice on taking early SS retirement. I turn 62 in 2026.
Too early to make any decisions. With 14 years to go before you'll be eligible for SS, my advice would be to monitor changes (if any) to SS and evaluate your options when you get closer to a decision date.
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Old 09-05-2012, 01:20 PM   #64
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Complicating my decision is that, with the WEP provisions, monthly benefit at my current age (63) is only $345, waiting to 66 would give me a whopping $432. Not a very big difference. But with my minor boys, they could each get a little over $100 a month for about 4.5 years. My wife is 10 years younger and would be entitled to way more SS on her own record than from me. So conventional thinking does not fit our situation at all.
That's our scenario without the WEP (and corresponding pension).
Hubby is 10 years older than me. Will be 62 in a year and a half.
We have minor boys.
My SS earnings are significantly higher than the hubster.

Plan right now is for hubby to claim at 62, and the boys will get some as minor dependents of a person collecting.

I will evaluate whether to claim 1/2 of his SS at my FRA (67) - the kids will be off by then. Or to take mine sooner at age 62. But that's more than 10 years out... A lot can change in that time.
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Old 09-05-2012, 03:33 PM   #65
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I've read about this but what I have read seems to be rather confusing the way it is written.

So, let me get the strategy right for two earners for myself and any others that might want this spelled out a little more clearly:
The spouse with the lesser SS payment potential takes SS at age 62.
The other spouse gets 1/2 of the payment of the spouse that took SS at age 62.
The spouse with the higher SS payment potential takes SS at age 66 or 70.
If the spouse with the higher SS payment potential dies before reaching 66 or 70, the spouse that is already taking SS at 62 now petitions for SS at the higher payment (66) of the spouse with the higher paying SS.

All this to maximize the amount received from SS over the long term taking potential mortalities into account.
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Old 09-08-2012, 06:59 AM   #66
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You guys should all be glad you don't work in a nonprofit. Mine is something like:

1370
1990
2400
My figures are almost exact as Ally's. I based mine on my 2010 retirement at age 48. Good to know the numbers are consistent. (FRA is 67 for me).
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Old 09-08-2012, 09:50 PM   #67
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Here is another thought, what will a dollar do for you at 62 and what will a dollar do for you at 79? At 79 will you be traveling as much? Will you still have as many friends to do things with (or even a spouse)? What will you and I be able to do at 79, will we be able to do the same things as at 62, golf, fish, hunt, ride motorcycles, etc. etc? My thoughts are that life is to be lived while you have it, it takes money to do a lot of things, by 79 whether I have the money or I most likely will not be able to physically do the things I could at the age of 62 and that might even include driving.
+1 We think like you. I am already down to one motorcycle from four.
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Old 09-09-2012, 10:31 AM   #68
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Here is another thought, what will a dollar do for you at 62 and what will a dollar do for you at 79? At 79 will you be traveling as much? Will you still have as many friends to do things with (or even a spouse)? What will you and I be able to do at 79, will we be able to do the same things as at 62, golf, fish, hunt, ride motorcycles, etc. etc? My thoughts are that life is to be lived while you have it, it takes money to do a lot of things, by 79 whether I have the money or I most likely will not be able to physically do the things I could at the age of 62 and that might even include driving.
And that is exactly why you should delay taking SS until age 70. You can spend more money in your 60s, because you have more money coming to you in your 70s.
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Old 09-09-2012, 11:32 AM   #69
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And that is exactly why you should delay taking SS until age 70. You can spend more money in your 60s, because you have more money coming to you in your 70s.
Yeah, I want to make sure I have enough money for the best walker in the neighborhood.
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Old 09-09-2012, 11:47 AM   #70
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Yeah, I want to make sure I have enough money for the best walker in the neighborhood.
With your track record you'll probably end up on the cover of Hot Walker Magazine...
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Old 09-10-2012, 07:22 AM   #71
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With your track record you'll probably end up on the cover of Hot Walker Magazine...
LOL, he'll probably add a hood scoop and some SS badging and try for another Hemmings cover shot
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Old 09-10-2012, 09:15 AM   #72
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I plan to use mine to pick up a little extra cash by plowing driveways around the neighborhood.

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Old 09-10-2012, 09:38 AM   #73
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With your track record you'll probably end up on the cover of Hot Walker Magazine...
Or Hot Biker Magazine, like this guy who was featured in Funny Joke Thursday.
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Old 09-10-2012, 11:41 AM   #74
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Me, age 48

1146
1627 - 67
2018

DW age 58

1018
1350 age 66
1782

DW will likely take it before age 66, but after 62 at this point. Will likely spend down her TSP account first. Would there be any compelling reason to wait til FRA for her?
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Old 09-12-2012, 12:33 PM   #75
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Me - age 46; Wife is 45

In future dollars, assuming I work up to each of the ages listed.

62 - $2537 per month
65 - $3528 per month
70 - $5932 per month

My wife would make less, so we'd probably have to go with half again my benefit (though I'm not 100% sure, and I suppose what she makes over the next 17 years will help shape that).
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Old 09-12-2012, 08:41 PM   #76
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isn't you combined life expentancy because you are young. the older you get the longer the life tables extend. once you reach 65 there is a 50/50 chance one of you will reach 90.
Your idea is correct, but your numbers are wrong. Once you reach 65, you have a 50/50 chance of reaching 83.

http://www.census.gov/compendia/stat...es/12s0107.pdf
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Old 09-13-2012, 01:44 AM   #77
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Yeah, I want to make sure I have enough money for the best walker in the neighborhood.
Here, let's do the Calculation....In case you missed the point.

Let's Say you retire this year at age 62 with the $1 Million Portfolio and decide to take a 4% SWR. You get Social Security of $19,476 per year at age 62 and delaying to age 70 would get you $34,092 per year. Let's assume no inflation for ease of calculations.

Scenario age 62. Your SWR is $40K per year and Social Security of $19,476 gets you a Spending total of $59,476 for each year of your retirement period.

Scenario age 70. You stash 8 years of $34,092 from your portfolio into a savings account for a total of $272,736. Your portfolio is now down to $727,264. Your 4% SWR is now $29,090 per year and you remove $34,092 from your savings account giving you a total of $63,182 to spend each year for the rest of your 30 year retirement period.

The Delay to age 70 gives you $3,706 more every year starting at age 62 with no more increased risk. If you are of limited imagination or physical capacity, I am sure that this would buy you the best walker in the neighborhood. For myself I would opt for an extra week of Fishing in the Bahamas every year for the rest of my 30 year retirement period.

No need for any stupid 'break even analysis'.

If your WR is more conservative, such as a majority of the people here and myself, the results are even more compelling. At a 3% WR rate the age 62 scenario is a total of $49,476 and the age 70 scenario is $55,910. The delay of SS now increases your annual spending by $6,434.
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Old 09-13-2012, 11:01 AM   #78
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Since I'm 63 and 5 months I've done the math over and over and I agree with you. The problem is that no male in my family has ever lived past the age of 68. So if everything holds true I can toss the math out the window.

DW turns 62 in Dec. and only worked a few years so it will be a small amount. So I'm thinking I'll also take mine in Dec. and it will boost DW's. Since I'll be close to 64 and the clock is ticking ya know.

I could also not take it and then drop dead and DW will get more. Hmmmm!

But I'm still holding a 500K LI policy (whole life, but tha't s for another thread) so she can get some tax free money from that.
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Old 09-13-2012, 01:05 PM   #79
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Since I'm 63 and 5 months I've done the math over and over and I agree with you. The problem is that no male in my family has ever lived past the age of 68. So if everything holds true I can toss the math out the window.

DW turns 62 in Dec. and only worked a few years so it will be a small amount. So I'm thinking I'll also take mine in Dec. and it will boost DW's. Since I'll be close to 64 and the clock is ticking ya know.

I could also not take it and then drop dead and DW will get more. Hmmmm!

But I'm still holding a 500K LI policy (whole life, but tha't s for another thread) so she can get some tax free money from that.
if your convinced you will die by 68 take the money
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Old 09-13-2012, 01:07 PM   #80
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if your convinced you will die by 68 take the money

I keep looking for an expiration date but can't find one. But most likely I will be taking the money in Dec..
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