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Old 07-30-2011, 12:08 PM   #41
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Remember that, unless you are sick, it's a lot harder to spend money after age 85 or so. You may just want to hang out around home.
Hey! That's what I just want to do even at the young age of 63. I am such a homebody.
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Old 07-30-2011, 12:09 PM   #42
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RMDs start at age 70-1/2, not 90...
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Yes, they do. However, they can be quite severe at age 90
What he said... Check out the formula.
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Old 07-30-2011, 01:31 PM   #43
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If you are a single male it seems to me 62 is best.
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Old 07-30-2011, 02:41 PM   #44
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If you are a single male it seems to me 62 is best.
Based on what ?
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Old 07-30-2011, 03:16 PM   #45
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Based on what ?
Can't speak for Westlake, but I have read how short lived us single males are based on the surveys or research, or false theories. We are depressed, drink too much, dont eat healthy, don't have a wife to take care of us, etc... Bleak future for us indeed. Cash the check while your still breathing! Maybe he has read the same stories.
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Old 07-30-2011, 03:54 PM   #46
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The 62 versus 66 versus 70 debate will likely look much different in 8 years for folks currently 62 and hoping all the rules are the same in 2020.

I picture changes to:
1. COLA
2. Spousal rules that allow a do-over at 70.
3. Taxation on SS income.
4. Means testing.

A person 62 right now would feel mighty foolish if they passed up 8 years of income under current rule and then in 2020 find a whole different set of rules.
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Old 07-30-2011, 04:46 PM   #47
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I guess the RMD thing depends a lot on the formula for how much you have to take out. I figure that if I'm 90, and don't plan to leave any inheritance, I'd better start taking out the money anyway if I want to use it before I die.

Anyone have a feeling for how the RMDs related to life expectancy, etc?

Quote:
A person 62 right now would feel mighty foolish if they passed up 8 years of income under current rule and then in 2020 find a whole different set of rules.
Yes, that certainly throws a monkey wrench into things. Hopefully those changes would include grandfathering.
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Old 07-30-2011, 05:15 PM   #48
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A real eye opener for me was the rule change to do away with the "do-over" (allowing someone to start at 62, then payback at 70) showed me that they can change things without any justification.

There one day, gone the next. I expect to see SS pecked away at in small increments but with 8 years to do it, the rules could look a lot different in 2020.

EDIT: There have been some discussions on making SS solvent by lowering the rate of COLA by going to "chain-weighted" CPI versus the current CPI being used. And also using this lower CPI to calculate initial benefits instead of the Wage Index inflation which is supposedly 1% higher on average. If enacted, this would result in the initial check being smaller and also growing more slowly.
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Old 07-31-2011, 07:32 PM   #49
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You could make the same cooments about your nestegg.

What if you die before spending that extra $40k out of your nestegg.

Not only does it really suck to be dead, but what's worse you didn't spend enough !
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Except if the money is in my nest egg, I get to pass it on. Yes, I know SS has spousal provisions, but something tells me the actuaries have already run the numbers and accounted for that.
Again, you could pass on the (age 70) higher income stream to your spouse in many cases. They then won't need to spand down the estate so much. That estate could then be passed on to anyone.
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Old 08-01-2011, 08:21 AM   #50
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Again, you could pass on the (age 70) higher income stream to your spouse in many cases. They then won't need to spand down the estate so much. That estate could then be passed on to anyone.
Yes, you could begin saving the higher SS income at age 70, and they could save that money to build their nest egg. However, most projections have some sort of break even point near age 80.

I think another variable most folks don't look at (think of it as one of those mathematical risk adjustment equations). I'm working on the details, but my initial thought is to call it: pension optimization distribution. Works something like this:

amount of my money sent to D.C. x years of ineptness + political risk = PO'd
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Old 08-01-2011, 08:19 PM   #51
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One of the nice things about SS is that it is so flexible.

So far this thread had 50 different ideas on the subject.

Until about a year ago I never knew about the "claim now, claim more later" aspect of SSA. After researching it and getting ideas and advice from a bunch of folks here and at Bogleheads, I realized that, with me being age 66 and DW being 62, it was a perfect strategy to delay my SS until age 70 and have me claim as a spouse on her age 62 claim.

Not many pension plans (if any) are so flexible.
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Old 08-02-2011, 05:38 AM   #52
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One of the nice things about SS is that it is so flexible.

So far this thread had 50 different ideas on the subject.
I think I change my plans on when to take SS at least once a year. When the time comes to make the first decision in 6 years I'm almost tempted to write down all the options on different cards, put them a hat and have DW pick one out.
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Old 08-02-2011, 09:57 AM   #53
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Before I reached FRA, I enjoyed logging in to the SS website at the first of the month and seeing the amount that my estimated benefit increased each month. This reinforced my plan to defer claiming my SS. Now that I have reached FRA, I find that my estimated benefit is not updated each month. This is a real downer and tempting me to go ahead and claim my benefit.

I can calculate the estimated monthly increase manually, but it's not the same.
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Old 08-02-2011, 10:34 AM   #54
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Before I reached FRA, I enjoyed logging in to the SS website at the first of the month and seeing the amount that my estimated benefit increased each month. This reinforced my plan to defer claiming my SS. Now that I have reached FRA, I find that my estimated benefit is not updated each month. This is a real downer and tempting me to go ahead and claim my benefit.
But it does give you your benefit at age at 70 (regardless of the monthly increase, from age 62 to FRA - as I do every month).

It's still a goal, IMHO...

Since I'll be claiming against my wife (at 50%) in a couple of years, at least I don't feel I'm losing anything, as I wait till age 70 (primarily for DW's benefit) to claim my SS.
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Old 08-02-2011, 11:00 AM   #55
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Originally Posted by Zero View Post
The 62 versus 66 versus 70 debate will likely look much different in 8 years for folks currently 62 and hoping all the rules are the same in 2020.

I picture changes to:
1. COLA
2. Spousal rules that allow a do-over at 70.
3. Taxation on SS income.
4. Means testing.

A person 62 right now would feel mighty foolish if they passed up 8 years of income under current rule and then in 2020 find a whole different set of rules.
This is the heart of why I'm torn between taking ASAP or waiting until 70. Unless the rules are grandfathered for those age 60 or older, how can one make the calculations? If the rules change in the middle of the stream, nobody can make a meaningful decision.
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Old 08-02-2011, 11:05 AM   #56
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This is the heart of why I'm torn between taking ASAP or waiting until 70. Unless the rules are grandfathered for those age 60 or older, how can one make the calculations? If the rules change in the middle of the stream, nobody can make a meaningful decision.
yeah !

How can we game the system if they keep changing the rules.
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Old 08-02-2011, 11:35 AM   #57
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My mom doesn't/didn't work in an income producing job after I was born, I'm not sure she ever earned any income in the US actually, her work may all have been in Ireland.
If she worked in Ireland for a few years, she is probably due an Irish pension. She should check with the authorities there.

I emailed them last week looking for my PPS number (the SSN number in Ireland) so I could have it on file. I emailed:
Registration Unit <SECT.REG4@welfare.ie>

They actually prefer you to call them - from the US you would call
011 353 1 704 3281
opening hours are GMT 9.15am to 1.00pm
and 2.00pm to 5.00pm Monday to Friday.

She may have to provide a marriage certificate to claim on a new name.

(I gave them my mailing address and got the number in writing as I want to merge my years with the UK pension office.)
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Old 08-02-2011, 12:32 PM   #58
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yeah !

How can we game the system if they keep changing the rules.
I'm not sure that trying to make the best decision for something that you will be locked into for the rest of your life should be considered "gaming the system"
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Old 08-02-2011, 12:37 PM   #59
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I'm not sure that trying to make the best decision for something that you will be locked into for the rest of your life should be considered "gaming the system"
Call it what you want.... A rose by any other name...
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Old 08-02-2011, 12:53 PM   #60
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Call it what you want.... A rose by any other name...
Thinking of SS planning as "gaming" makes me recall something about "being a winner at a loser's game"... I hope not! On this one, I'm with Charlie. I would prefer just plain "Winning!".
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