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Old 05-12-2015, 12:42 PM   #61
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To quote the venerated wit Mike Tyson "I won't know whether to be ecstatic or ludicrous" if I make it to 78 or 80. (probably ludicrous)



My view is that by the time I'd reach if I'm lucky enough to reach my break even, my expense profile will be considerably lower or at least shifted to things less valued.



I'd rather have the extra cash now.



1) less $$ I have to withdraw from my portfolio

2) my portfolio would/should grow at least as well as SS (if not better)

3) get in before DC changes the rules. (How sad would it be to hold off for a better result only to be subjected to means testing!)

I agree with you, Marko. Take the money and protect your nest egg. What if they cut it down the road? At least you know you have your money still. But my opinion doesn't mean much.... I will draw at 62 and collect my $110 monthly check instead of delaying until 70 for $170 or whatever pittance it will still be.


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Old 05-12-2015, 01:47 PM   #62
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A question, how does COLA factor into this? Say you delay your benefits, will your retirement allowance still be COLA adjusted?
Yes, COLA is on top of that. So let's say your FRA at 67 is $2,000 and from 67-70 the compounded impact of COLA increases that $2,000 to $2,150. Your age 70 benefit would be $2,666 ($2,150 * 124%).
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Old 05-12-2015, 01:50 PM   #63
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Also, be careful SS @ 62 doesn't put one over one of the ACA cliffs.
Very true! It's one of the myriad factors that shows when to start SS is very dependent on one's situation.
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Old 05-12-2015, 01:58 PM   #64
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Aargh, every single time I make up my mind to start at 70, I see one of these posts. So today, I've decided to start at 62. That is, until I see someone start a post about why starting at 70 is so much smarter.
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Old 05-12-2015, 02:28 PM   #65
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FWIW, in my working and saving years I never counted on SS. I just didn't want to add into the equation an unknown. Since I have been retired I took SS at 62 for a couple of reasons. The first was I could back off drawing from my portfolio in the amount of the SS which is a little more than $20K per year. Plus the biggest variable is when are you going to take the dirt nap ? Between myself and employer we put in over $200K and the sooner I could get my money back, the better.
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Old 05-12-2015, 02:52 PM   #66
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I agree with you, Marko. Take the money and protect your nest egg. What if they cut it down the road? At least you know you have your money still. But my opinion doesn't mean much.... I will draw at 62 and collect my $110 monthly check instead of delaying until 70 for $170 or whatever pittance it will still be.


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I also forgot to mention that each dollar of SS is taxed more advantageously than the same dollars withdrawn from one's IRA.
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Old 05-12-2015, 03:02 PM   #67
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Plus the biggest variable is when are you going to take the dirt nap ?
easy to estimate for 100,000 lives, very difficult to estimate for 1 life
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Old 05-12-2015, 03:12 PM   #68
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Correct me if I'm wrong, but my understanding of SS is that you receive the same amount no matter when you start as long as you die within the SS mortality table age. So waiting until 70 is really longevity insurance with a reward for being old.
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Old 05-12-2015, 03:20 PM   #69
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Keep in mind that according bro social security statistics, the percentage of people that apply for ss at 70 is in the single digits. Less than 1 in 10. Very few do.


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Old 05-12-2015, 03:26 PM   #70
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Keep in mind that according bro social security statistics, the percentage of people that apply for ss at 70 is in the single digits. Less than 1 in 10. Very few do. ...
And your point is?

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Old 05-12-2015, 03:27 PM   #71
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Keep in mind that according bro social security statistics, the percentage of people that apply for ss at 70 is in the single digits. Less than 1 in 10. Very few do.


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I suspect that more recently, the Great Recession pushed a lot of people into the 'take it early' group.

It's easy to say "wait until you're FRA or more" if you still have a job, but if you're not working and have little savings, you do what ya gotta do.
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Old 05-12-2015, 03:32 PM   #72
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easy to estimate for 100,000 lives, very difficult to estimate for 1 life
Difference between actuaries and the Mob? Actuaries know how many people are going to die in a given year, The Mob knows their names!!
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Old 05-12-2015, 03:35 PM   #73
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I did a spreadsheet once that --in my own personal case--showed that once the Fed tax break, no State income tax and loss of investment income from my IRA were all factored in, I was ahead about $4K per year by taking SS at 62 instead of withdrawing from my IRA.

I actually saved $1990 in Fed/State taxes alone.

It effectively pushed my break even age to more like 84.
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Old 05-12-2015, 05:02 PM   #74
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Ok if not Roth then MRDs from 401ks.
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Old 05-12-2015, 05:13 PM   #75
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I did a spreadsheet once that --in my own personal case--showed that once the Fed tax break, no State income tax and loss of investment income from my IRA were all factored in, I was ahead about $4K per year by taking SS at 62 instead of withdrawing from my IRA.

I actually saved $1990 in Fed/State taxes alone.

It effectively pushed my break even age to more like 84.
I found similar savings. Once again, everyone needs to do their own analysis. There is no single right answer.
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Old 05-12-2015, 05:26 PM   #76
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There is no single right answer.
That should be the subtitle to this forum! Seems to be the answer to just about everything here.
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Old 05-12-2015, 05:39 PM   #77
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Keep in mind that according bro social security statistics, the percentage of people that apply for ss at 70 is in the single digits. Less than 1 in 10. Very few do.....
but as someone has already pointed out to you, there is a reason that those who wait until they are 70 are so few. It is because many people cannot afford to wait until they are 70... they need the cash flow for daily living expenses.

What we are talking about here are people who have sufficient means to have a choice to take it at 62 or FRA or 70.
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Old 05-12-2015, 05:56 PM   #78
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That should be the subtitle to this forum! Seems to be the answer to just about everything here.
+1. I think you're onto something.
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Old 05-12-2015, 06:04 PM   #79
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DW and I both opted in as soon as possible. No regrets. Loving those monthly gummint deposits..
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Old 05-12-2015, 06:14 PM   #80
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I will probably never the the math on SS, it seems very straight forward to me that the best time to take it is whenever the market drops and you other wise would be taking a suboptimal withdraw amount. SS is the perfect tool to avoid a market bottom.


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