Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 05-05-2016, 06:24 PM   #61
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 402
I will probably take SS at 62, and DW will be FRA when I turn 62 because's she's older. It will allow us to take less from our 403B and IRA. The benefit of letting our retirement accounts grow from 62 to 70 with less withdrawals will probably extend break even point from 78 yrs old to 82 - 83 yrs old. If I live beyond 83, I'll probably downsize from a 3,500 sq.ft home to a 800 sq.ft. studio LOL.
__________________

__________________
No to consumerism, Living a simple life, enjoying the experience - not the material stuff
cyber888 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 05-05-2016, 07:00 PM   #62
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 221
Quote:
Originally Posted by nubill View Post
Our plan is to first do a Roth conversions on all our remaining IRA’s. My tax code knowledge may be incorrect and would invite anyone to comment and correct me. I started this when I turned 60 and have been trying to convert as much as I can without going over the 15% bracket which for married filing jointly is around $75K for TY 2016.


How many years to do all the conversions? What will your income be after you do them. I trust you will not pay 15% now and then be in a 10% bracket after you start SS. You don't have to do it all . I was in a hurry at first but slowed down and now I'm planning on finishing depleting my IRA's in my 80's to make the most of lower tax rates.
__________________

__________________
Dave J is offline   Reply With Quote
Old 05-05-2016, 07:01 PM   #63
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,399
DH took SS at about 62.75 (when he retired). In our case, it was a very easy decision because we had 2 minor children and those benefits made that the right call.

I recently turned 62 and haven't taken yet. I tentatively plan to take at the beginning of 2017, but that is subject to some change. My benefit is slightly more (if taken at the same age as DH) so there are no spousal reasons to defer. I prefer the flexibility of taking earlier and don't want to deplete the portfolio to wait until FRA or 70. I tend to think benefits will be cut at a later time. I don't think taking early will protect me from such changes. But, I will get the benefit of current benefits by taking sooner rather than later.
__________________
Katsmeow is offline   Reply With Quote
Old 05-05-2016, 07:31 PM   #64
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
God willing, I'll turn 62 in the year 2024. If SS is still available at that age, I'll be on it like a hobo on a ham sandwich!!

ATTN littleb:
You mentioned that a couple of your relatives weren't that confident in Social Security being around for the next 10 years.

I'm including a scan of a pamphlet that was included in my 401(k) statement sometime in 2006. I think this lady does a pretty good job of showing the realities of Social Security even though the pamphlet is 10 years old.



FYI: In case you didn't know this, the government started cutting SS way back in 1983 when they voted to tax benefits for the 1st time. And they continue to cut benefits by occasionally lowering the amount of income you're allowed in addition to your SS before it becomes taxable. Criminal in my opinion but what are you going to do ?

What this shows is that the government knew Social Security was in trouble a long, long time ago. So don't believe the political party that tells you everything is & will be hunky-dory.

It's not
__________________
ownyourfuture is offline   Reply With Quote
Old 05-05-2016, 08:31 PM   #65
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 402
The way around it is to stay in a State where SS is not taxed. And also ge the minimum amount from your nest egg, so it does not raise your tax bracket. Congress is corrupt and fattening their own pork barrel for sure.

Quote:
Originally Posted by ownyourfuture View Post
God willing, I'll turn 62 in the year 2024. If SS is still available at that age, I'll be on it like a hobo on a ham sandwich!!

ATTN littleb:
You mentioned that a couple of your relatives weren't that confident in Social Security being around for the next 10 years.

I'm including a scan of a pamphlet that was included in my 401(k) statement sometime in 2006. I think this lady does a pretty good job of showing the realities of Social Security even though the pamphlet is 10 years old.



FYI: In case you didn't know this, the government started cutting SS way back in 1983 when they voted to tax benefits for the 1st time. And they continue to cut benefits by occasionally lowering the amount of income you're allowed in addition to your SS before it becomes taxable. Criminal in my opinion but what are you going to do ?

What this shows is that the government knew Social Security was in trouble a long, long time ago. So don't believe the political party that tells you everything is & will be hunky-dory.

It's not
__________________
No to consumerism, Living a simple life, enjoying the experience - not the material stuff
cyber888 is offline   Reply With Quote
Old 05-05-2016, 08:56 PM   #66
Recycles dryer sheets
nubill's Avatar
 
Join Date: Jul 2004
Location: Central Florida
Posts: 58
Quote:
Originally Posted by Dave J View Post
How many years to do all the conversions? What will your income be after you do them. I trust you will not pay 15% now and then be in a 10% bracket after you start SS. You don't have to do it all . I was in a hurry at first but slowed down and now I'm planning on finishing depleting my IRA's in my 80's to make the most of lower tax rates.
With zero growth in the IRA and based on our current spending, if I converted the rest of my IRA it would take about 5 years. Then my wife would take 5 years. If I take SS at full retirement age (66), 50% of it would be subject to tax, if I take SS at 70 it jumps to 85%. Pensions and SS will keep me and DW above the 10% bracket. The 7% state income tax on IRA/401K withdrawals here in SC starts at $14,400 for married filing jointly.

I can slow down some time in the future, but if I did nothing at age 60 RMD’s would push me in the 25% bracket. Your suggestion made me think that I should run these “Should I do a Roth Conversion Calculators” (Fidelity has one, takes about 15 minutes) every year before conversion. I have not done one in a couple of years, and the stock market is never static. Dave J, thanks for the advice.
__________________
nubill is offline   Reply With Quote
Old 05-05-2016, 08:57 PM   #67
Recycles dryer sheets
 
Join Date: Apr 2016
Location: warren
Posts: 184
Quote:
Originally Posted by tmm99 View Post
My crystal ball says SS will not go away and if the payout decreases, it will be only by a very slight amount. There are just too many people whose main source of income is SS. The government won't want to create a bunch of old homeless people who are starving to death.


Sent from my iPhone using Early Retirement Forum
Very true, but they may institute means testing, which is my fear. I save all my life and then they tell me I'm "too rich" to need SS.
__________________
garyt is offline   Reply With Quote
Old 05-05-2016, 09:05 PM   #68
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Quote:
Originally Posted by garyt View Post
Very true, but they may institute means testing, which is my fear. I save all my life and then they tell me I'm "too rich" to need SS.
I feel the same way Gary. You know, people have questioned me on this and even called me greedy for feeling the way I do about Social Security. Sometimes they bring up the old motto 'whoever said life was fair'

I understand that motto, but I always figured it should apply to something like losing a loved one early, etc
Not your very own government punishing you for doing what they told me to do. Save early save a lot, & therefore you won't be a burden on us.

Yeah right
__________________
ownyourfuture is offline   Reply With Quote
Old 05-05-2016, 09:10 PM   #69
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Quote:
Originally Posted by cyber888 View Post
The way around it is to stay in a State where SS is not taxed. And also ge the minimum amount from your nest egg, so it does not raise your tax bracket. Congress is corrupt and fattening their own pork barrel for sure.
I'll almost certainly have to leave the state of Minnesota at that time.
They're one of only four states that taxes both SS & Pension income.
And it doesn't matter if it's a government civilian Pension, military pension, or a private sector Pension, which I have.

Government greed
__________________
ownyourfuture is offline   Reply With Quote
Old 05-05-2016, 09:50 PM   #70
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 2,144
I'm waiting until 70. But then again I am getting a nice SS check based on the late DW's account until I start my own. I'm withdrawing the difference between my income now and what I will get at 70 just to smooth the income. High tax bracket won't ever be a problem I can do anything about. I'm in the 25% bracket now and most likely always will be. As discussed in other threads, plenty of income (and the associated higher tax burden) is a problem I can live with.
__________________
Hermit is offline   Reply With Quote
Old 05-05-2016, 10:07 PM   #71
Full time employment: Posting here.
 
Join Date: Apr 2014
Location: Houston
Posts: 639
Quote:
Originally Posted by nubill View Post
Your suggestion made me think that I should run these “Should I do a Roth Conversion Calculators” (Fidelity has one, takes about 15 minutes) every year before conversion.
Optimal Retirement Calculator and Retirement Decision Support System does a nice job of testing if Roth Conversions would be beneficial or not. Output includes a table of how much you will pay in taxes each year and how much is paid into each tax bracket. Can run a case w/o I-ORP suggestions for Roth Conversions and one with those suggestions and compare your tax impact.

Sometimes Conversions make sense and save overall tax spend depending on the situation. Sometimes not so much so.

Roth conversions can also impact when you may want to take SS. If Roth conversions are beneficial in your case AND you need a few more years to convert the amount you want, delaying SS may allow more years of conversions without a high taxable income (SS + conversion).
__________________
Whisper66 is offline   Reply With Quote
Old 05-05-2016, 10:12 PM   #72
gone traveling
 
Join Date: Jun 2015
Location: seattle/dahlonega
Posts: 77
SS at 62
__________________
hurricane harry is offline   Reply With Quote
Old 05-06-2016, 05:02 AM   #73
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,735
Send a message via Skype™ to kcowan
DW and I both in at 62. Since deferral is just an actuarial game, I figured we could play it to our benefit. We also get deferred pensions at 72. So the cash flow would help for 10 years.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 05-06-2016, 06:31 AM   #74
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,487
Starting to get off topic. Just a reminder to avoid politics and get back to the original question, posted here as a reminder

Quote:
Originally Posted by littleb View Post
So, I see different reasons why someone might take ss at age 62. Maybe if you are in bad health, longevity does not run in the family or you don't have the money to coast from age 62 to FR age.

What age were you when you took social security? Are there other advantages at age 62 vs full retirement age?
__________________
MichaelB is offline   Reply With Quote
Old 05-06-2016, 06:33 AM   #75
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,455
We'll be waiting to FRA. Good health and family longevity, not to mention joint mortality.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Social Security at age 62
Old 05-06-2016, 06:52 AM   #76
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 1,049
Social Security at age 62

I'm 61 and will be 62 July - I'll apply soon and get nothing because my income (still working) is too high. My 17 year old (birthday today) will get 10 months of checks... And they are going in the Bank!

When I do call it a day (months not years) I'll use the as to cover my company of AKA insurance ~$1800 a month -is that unbelievable or what?


Sent from my iPad using Early Retirement Forum
__________________
rayinpenn is offline   Reply With Quote
Old 05-06-2016, 07:11 AM   #77
Full time employment: Posting here.
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 746
Waiting til 70 here(two years and 6 months from now). I do collect 1/2 of my DH's currently and have for the past 18 months. I like the longevity insurance aspect of waiting. DM is 91 and still going strong.
__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Old 05-06-2016, 07:18 AM   #78
Moderator
Ronstar's Avatar
 
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 9,356
We attended a SS seminar, and had 5 scenarios run. The DW taking at 70, me at 66 scenario has $90k more in cumulative benefits than the DW taking at 66, me at 62 scenario. The other scenarios generally fit between these 2 in cumulative benefits, except the 62/62 scenario that came in at $300k less in cumulative benefits. Given all of this, I'm undecided as to when to start taking SS. But I still have 1.25 years until I turn 62, so I have time to figure it out. DW turns 62 in 2 months.
__________________
Ronstar is offline   Reply With Quote
Old 05-06-2016, 07:25 AM   #79
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 1,054
Took it at 62. Longevity is not on my side and the money will be used to pay off a mortgage that cannot be refinanced conventionally because I have too many mortgages in my name.

A cousin recently died at 72. She took it at 62, maximizing her benefit over time by relying on a combination of her record and her highly compensated ex-husband's record. Imagine if she had waited until 70 to collect...
__________________
Another Reader is online now   Reply With Quote
Old 05-06-2016, 08:41 AM   #80
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
I read this thread with interest, as DH is turning 55 this year and my thinking is that he should take it at 62 and I (8 years younger) should hold off until at least FRA to help boost my income (assuming I do in fact live as long as the actuaries say) later. We haven't run any scenarios yet, but glad to see the thought process of some of you other folks.
__________________

__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC 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
So, do you feel your age? Act your age? Like your age? vickko Life after FIRE 84 04-10-2010 02:47 PM
Social Security at age 60? cashbalancetrouble FIRE Related Public Policy 40 03-20-2010 04:55 PM
Paying social security tax after age 66 modhatter FIRE and Money 2 03-10-2007 04:59 PM
At what age will you take Social Security? retire@40 FIRE and Money 39 10-05-2006 01:58 PM

 

 
All times are GMT -6. The time now is 05:03 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.