I'm 67 next month and have not filed for SS, max paid in SS more than 35 years, benefit $4881 at age 70, $3886 if I file next month at 67. We are not relying on SS for retirement as savings and RMD at 70 will cover our expenses. I already searched these forums but could not find anything that matches our situation, although I could have missed it, apologies in advance.
My wife has insufficient work contribution to qualify for SS so she will use spousal benefit. SS website shows $1784 if she starts today at 66 and $1889 if she waits to age 70 as is/was my intention (we are 1/2 year apart, I am older). The penalty is our benefit is only reduced $1005.
Me: $4881 at 70, $3886 at age 67 (now)
Her: $1889 at 70, $1784 at age 66 (now)
Us: $6770 at age 70, $5670 at age 70 (deferring 3 years)
$5670x36 months is $204,120 (3 year deferral).
Linearly (no time value of money and excluding tax consequences, I'm still working) this looks like a 17 year break even.
These numbers are approximate but is there something wrong with my logic? Logic tells me that both of us file ASAP and start collecting and not wait until I turn 70. Even if these numbers are a little off. Again, we don't need this SS money to live. We would probably just collect it and shove it into SPY-like fund or ETF, set it and forget it.
Me, being cheap is asking this wonderful forum for free advisement and information, especially if there is a huge flaw in my logic and thinking before I sit down with our CPA and start that hourly clock for our yearly retainer billing. I just don't want to present this to our CPA until it gets vetted here. Thank you in advance.
My wife has insufficient work contribution to qualify for SS so she will use spousal benefit. SS website shows $1784 if she starts today at 66 and $1889 if she waits to age 70 as is/was my intention (we are 1/2 year apart, I am older). The penalty is our benefit is only reduced $1005.
Me: $4881 at 70, $3886 at age 67 (now)
Her: $1889 at 70, $1784 at age 66 (now)
Us: $6770 at age 70, $5670 at age 70 (deferring 3 years)
$5670x36 months is $204,120 (3 year deferral).
Linearly (no time value of money and excluding tax consequences, I'm still working) this looks like a 17 year break even.
These numbers are approximate but is there something wrong with my logic? Logic tells me that both of us file ASAP and start collecting and not wait until I turn 70. Even if these numbers are a little off. Again, we don't need this SS money to live. We would probably just collect it and shove it into SPY-like fund or ETF, set it and forget it.
Me, being cheap is asking this wonderful forum for free advisement and information, especially if there is a huge flaw in my logic and thinking before I sit down with our CPA and start that hourly clock for our yearly retainer billing. I just don't want to present this to our CPA until it gets vetted here. Thank you in advance.
