Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-09-2009, 03:12 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Quote:
Originally Posted by OAG View Post
No Sir, it is pretty simple to do on a single return (the return for the year of repayment). Two methods either a tax deduction or a tax credit (the credit will usually work out the best).

great!.... nice deal then if even the taxes are credited
__________________

__________________
mathjak107 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-10-2009, 06:16 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
i just heard them discussing this on the radio and they said you can only go back 3 years to re-claim taxes you paid in on the social security your paying back
__________________

__________________
mathjak107 is offline   Reply With Quote
Old 03-10-2009, 06:38 PM   #43
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 295
Well, IMO? IAD..
1. IF you are in Good Health and Prospects Look good your you to make it to like age 85? maybe wait till 65 or later..
2. If you Won't Need it? Your Personal Savings/Investments/Pensions will provide more than eough? Maybe hold off on taking it and let it build
3. If your Investments are going to Make More on it if you take it now and can Invest it? take it At age 62. and invest it..( Use the SS calculators to compare)

I have a Shortened Life expectancy Lifespan and took it at age 62 ( Insulin Diabetic) and we have about a 5-15 yr Less Lifespan.. eventhough I didn;t need it.. Just to use it to add to my Investments.. that my past 10 yrs Rtns on my $ far exceeds waiting till age 66 to get my SS..

And quite frankly? If you have to Depend on SS to Retire early? I think You haven't got enough $ saved up..or enough in other Income to retire early.. I Didn't include my SS for retiring early..It's a Bonus not a Necessity..
__________________
Dennis is offline   Reply With Quote
Old 03-10-2009, 07:51 PM   #44
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by Dennis View Post

And quite frankly? If you have to Depend on SS to Retire early? I think You haven't got enough $ saved up..or enough in other Income to retire early.. I Didn't include my SS for retiring early..It's a Bonus not a Necessity..
Going forward for all you RE wannabees, this is good advice.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 03-10-2009, 08:07 PM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Quote:
Originally Posted by Dennis View Post
... I Didn't include my SS for retiring early..It's a Bonus not a Necessity..
Neither did I. I have my quarters in, my statement arrives in my mailbox every year, and there are numbers printed on it.
Whatever is there when the time comes, I will certainly be grateful for. But I am not holding my breath.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 03-10-2009, 08:23 PM   #46
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
I didn't have to depend on SS to retire early, but I'm depending on it to stay retired. My second SS check hit the bank today...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 03-10-2009, 09:07 PM   #47
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
Quote:
Originally Posted by REWahoo View Post
I didn't have to depend on SS to retire early, but I'm depending on it to stay retired. My second SS check hit the bank today...
Have 3.5 years to go. Haven't decided yet.
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Old 03-10-2009, 10:06 PM   #48
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by REWahoo View Post
I didn't have to depend on SS to retire early, but I'm depending on it to stay retired. My second SS check hit the bank today...
My thoughts exactly, although my checks do not begin until the end of this year.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 03-10-2009, 10:16 PM   #49
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
REWahoo:

I didn't have to depend on SS to retire early, but I'm depending on it to stay retired. My second SS check hit the bank today...
Quote:
Originally Posted by Bikerdude View Post
My thoughts exactly, although my checks do not begin until the end of this year.
Yes indeed. At DOW 14,000, the thought of future SS checks didn't do much to excite me. But at DOW 7,000 the anticipation of my first SS check in August has me all a-twitter! In fact, since I've now made a firm decision to go ahead and get those checks started, I've put a temporarily canceled fishing trip back on the 2009 calendar!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 03-10-2009, 10:21 PM   #50
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by Dennis View Post
And quite frankly? If you have to Depend on SS to Retire early? I think You haven't got enough $ saved up..or enough in other Income to retire early.. I Didn't include my SS for retiring early..It's a Bonus not a Necessity..
You could look at it another way.....

If you don't need SS to RE, you haven't written enough fun activities into your RE budget!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 07-12-2009, 12:54 PM   #51
Dryer sheet aficionado
Raygun99's Avatar
 
Join Date: Oct 2007
Location: Rockwall,
Posts: 41
Hello Friar I wonder if you have modeled the early pay back scenario--
regarding the financial benefits of taking money from an IRA or 401K to repay the $$ when the time comes. Does that strategy guarantee you aprox 7-8% annual ss gain (based on stepped up benefits) as compared to lower gains that could potentially be in the retirement accounts? Just looking for a 2nd opinion. Would it be prudent to take the money early, save it or spend it and pay it back from IRA funds .. especialy if their gains are less than the guatanteed 8% annual stepped up ss gain?
__________________
Zacchaeus Come Down From That Tree
Raygun99 is offline   Reply With Quote
Old 07-12-2009, 03:11 PM   #52
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,812
Quote:
Originally Posted by Raygun99 View Post
Hello Friar I wonder if you have modeled the early pay back scenario--
regarding the financial benefits of taking money from an IRA or 401K to repay the $$ when the time comes. Does that strategy guarantee you aprox 7-8% annual ss gain (based on stepped up benefits) as compared to lower gains that could potentially be in the retirement accounts? Just looking for a 2nd opinion. Would it be prudent to take the money early, save it or spend it and pay it back from IRA funds .. especialy if their gains are less than the guatanteed 8% annual stepped up ss gain?
If you were planning to start at, say, 66 anyway, then I think the "take it at 62 just so I can pay it back" strategy amounts to taking an interest-free loan from the gov't. If you can earn more than 0% on the money, you've got a gain (before taxes). Taxes can make it more complicated.

If you were planning to take it early anyway, then any decision at a later date to restart is just a case of buying a COLA'd life annuity at that time. That decision is based entirely on the forward-looking value of an immediate annuity at that time.
__________________
Independent is offline   Reply With Quote
Old 07-13-2009, 10:15 AM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
I think the biggest advantage to the "take SS at 62 and consider paying it back and resetting at 66 scheme" is the knowledge you gain about your potential longevity during those four years. I'm starting my SS when I turn 62 (right now actually) with the intent of resetting at 66 if my health continues to be excellent. If the next four years brings bad news health-wise, of course I won't be repaying and resetting.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 07-13-2009, 11:10 AM   #54
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Quote:
Originally Posted by youbet View Post
I think the biggest advantage to the "take SS at 62 and consider paying it back and resetting at 66 scheme" is the knowledge you gain about your potential longevity during those four years. ....
I think along those lines also. Scott Burns in "Spend 'Til the End" says:

Quote:
The option to withdraw appears to have been implemented in order to assist applicants who ... decided to continue working...Social Security may view other reasons for wanting to withdraw an application as valid. Examples here include "I didn't think I'd live this long"....
__________________
CuppaJoe is offline   Reply With Quote
Old 07-13-2009, 09:13 PM   #55
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Location: Pittsburgh, PA suburbs
Posts: 1,769
I plan to apply for SS in five years, as soon as I hit 60. I want to get grandfathered in before they start messing with it. My Mom died at 61 before she even collected a penny. My Dad called his SS his "walking around money".
__________________
WhoDaresWins is offline   Reply With Quote
New York Times Article
Old 07-14-2009, 02:10 AM   #56
Full time employment: Posting here.
GoodSense's Avatar
 
Join Date: Jul 2007
Posts: 678
New York Times Article

Saw this very relevant article on the NYTimes a couple of days ago. For singles, the calculation seems fairly straight-forward. For couples it is wayyy more complicated.

http://www.nytimes.com/2009/07/11/yo...e.html?_r=1&em

I am still 35+ years away from full SS age, so I won't spend too many brain cells on it right now. Maybe it'll still be there. Who knows?
__________________
GoodSense is offline   Reply With Quote
Old 07-14-2009, 05:37 AM   #57
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by WhoDaresWins View Post
I plan to apply for SS in five years, as soon as I hit 60.
Age 60?
__________________
rescueme is offline   Reply With Quote
Old 07-14-2009, 05:51 AM   #58
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by Hal3 View Post
Most advisors say wait as long as you can to start taking Social Security if you can afford it.

It's looking like the system may collapse sooner than expected or perhaps the rules will change.

Is anyone nearing 62?
I can file for early SS (age 62 benefit) in a few months - however I will not.

As has been discussed in many forums concerning techniques for married couples, my wife will be filing early next year for age 62 benefits (we're a few months separated in age). At age 66 (FRA for both of us), I'll file against her, drawing 50% of her age 66 benefit (not 62!) and continue to accrue my benefit for nearly four years (ages 66-70). At age 70, I'll claim my benefit, primarily for her benefit, assuming I pass first.

Many folks say you should take SS at age 62. I would agree that there are those that must do this, based upon their health or affordability to retire. Also, those still working, nearing retirement age, and laid off in this economy (with little chance to get another job) are forced to take any revenue stream they are eligible for.

We look at it a bit differently. For many years, my DW/me led a LBYM lifestyle, delaying consumption by saving/investing for retirement. For us, delaying SS is no different; it is simply "delaying consumption", albeit at a different stage of life.

Additionally, since I pay for all expenses for our home (no note/mortgage, but I do cover taxes, utilities, upkeep/improvements, etc.) and assuming I pass first, my wife will get my SS benefit (an amount estimated to be over 2.5x her age 62 benefit) and allow her to age in place rather than move to a smaller home or apartment after I'm gone, per her desire.

Anyway, that's our plan...
__________________
rescueme is offline   Reply With Quote
Old 07-14-2009, 06:15 AM   #59
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 637
Rescueme-

I wonder if your plan will be allowed? My understanding is that when a married couple applies (at any relevant age), SS will look at whether your benefit, or 50% of your spouses will be higher, and you automatically get paid the higher benefit.

I may be wrong, but would be interested to know if your strategy is accepted by SS.
__________________
bizlady is offline   Reply With Quote
Old 07-14-2009, 06:31 AM   #60
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by bizlady View Post
Rescueme-

I wonder if your plan will be allowed? My understanding is that when a married couple applies (at any relevant age), SS will look at whether your benefit, or 50% of your spouses will be higher, and you automatically get paid the higher benefit.

I may be wrong, but would be interested to know if your strategy is accepted by SS.
This is not the condition of "file and suspend" in which I would apply at age 66 to allow my wife to get 50% of my benefit but not draw mine till age 70. While my wife's lifetime SS credit/earnings is less than mine, it would still be below 50% of mine (the "kicker" is the 8% increase per year from age 66 till age 70, for increasing my benefit). The file/suspend is used to allow early access of my wife to my benefit, but that's not what I'm doing with this plan.

Here's a link to this technique. Look under "Team Play" for details:

Two Ways To Optimize Social Security Benefits - Features
__________________

__________________
rescueme is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
When to take Social Security Stevewc FIRE and Money 5 08-31-2008 09:17 AM
Social Security Carol0720 Other topics 5 07-19-2007 01:18 PM
When to take Social Security sgeeeee FIRE and Money 244 05-27-2007 10:48 AM
Social Security, --- Again Sundance Kid Other topics 12 03-05-2007 08:53 PM
Do you think Social Security will be there? GTM Other topics 23 01-06-2006 02:38 PM

 

 
All times are GMT -6. The time now is 08:04 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.