SS strategy ... another thread?

[Perryinva]

Quote:

Originally Posted by pb4uski While the post is a bit disjointed, the bolded part is a totally false premise IMO... money is fungible.

I was responding to the post where someone said “get as much of the government’s money as possible”. The USE of money is fungible. How it is obtained is not. I did nothing to get my SS. I had no choice as what the amount would be, how much it grows etc, etc. it is what it is. I EARNED AND WORKED for my portfolio, sacrifice and LBYM, etc, etc, making investment decisions that paid off, etc, so yeah, THAT money means more to me than SS. IMHO of course.

[pb4uski]

Quote:

Originally Posted by Perryinva Even that is too simplistic, the gain is larger. First, you are paying yourself at 62 what you would be getting at 70. The COLA gains are to your benefit as the larger amount over $18k gains more. Then, the $253,440 is not spent at once. Only $2640 is taken monthly, so the remainder earns whatever interest that account carries. Even using 2% means a much smaller initial reduction, allowing the remaining to be used with the 4% rule, to be higher. It’s a great annuity for sure!

I guess that we'll agree to disagree... I presume that the side fund would be invested in an online savings account and/or a CD ladder so the draws from the side fund would increase each year with inflation just like withdrawals from the retirement savings portfolio would and the interest on the side fund would approximate the inflation. So all years would increase with inflation.

[Nords]

Quote:

Originally Posted by stephenson FRA is 66. I have full credits. My wife is same age and FRA, but does not have enough credits for her own SS. We are in the 32% federal bracket - military retirement, corporate pension and NQP, rental income, saved a lot over the years. I don’t see our income dropping below the 32% band ... and, SS will not take us into the 35% band. Good health (so far), pretty OK gene pool for longevity, lots of interests that require spending money, Fidelity model shows no way to spend it all unless we triple or quadruple our spend rate, etc. My gut tells me to take as much of my money back from the Federal government as possible ... Thoughts?

It sounds like you don’t need the money (yet), so why not wait until you can maximize its use instead of simply getting a refund?

The government has no more idea about your longevity than you do. Actuarially and demographically they’ve set up the payments to be roughly the same amount of money by the time you die, no matter when you start the payments between ages 62 and 70.

1. Would your spouse take her (someday) Social Security disbursements from your earnings record?

If you delay taking your SS as long as possible then it maximizes her longevity insurance when you (demographically) have passed away. Bud Hebeler used to write about this issue many times in his columns and his book.

I realize that you have savings and investments and perhaps the military’s Survivor Benefit Plan. But her higher SS income on your earnings record also goes to point #2:

2. If you wait until age 70 (for the largest SS payment you can receive), then (coupled with your pension and your savings) it’s that much more money to pay for long-term care (if you should need it).

The vast majority of people (even those in long-term care) won’t need it, although you don’t need it now either.

Yet my father spent over six years in a long-term care facility, and a few hundred extra dollars per month from his Social Security would have stretched out his assets for several more years. His father spent 14 years in a care facility, and I ran my Dad’s spreadsheet many times because I was sure that my father’s care expense was going to be another black swan in the long-tailed bell curve.

[Lancelot]

Quote:

Originally Posted by Nords Yet my father spent over six years in a long-term care facility, and a few hundred extra dollars per month from his Social Security would have stretched out his assets for several more years. His father spent 14 years in a care facility, and I ran my Dad’s spreadsheet many times because I was sure that my father’s care expense was going to be another black swan in the long-tailed bell curve.

Similar to my Dad's experience. I'm with you about the longevity insurance aspect of SS.

[target2019]

I vote for delay, in our case.
It's not my money, as I can't pass it on to heirs, other than setting groundwork for spouse to get a better monthly amount. She will live longer.

For OP, it sounds like taking everything possible now is the path he/she wants.