mathjak107
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 27, 2005
- Messages
- 6,208
the key word is risk adjusted returns .
if someone takes early ss and gets the average 5% real return they will do better then someone who doesn’t live to at least 90 .
, at least from a balance perspective which ultimately drives income
ss hedges things at a cost and the cost is if you die younger then 90 and most of us will , you may have less of a balance left if it matters then early ss and investing…
you actually need to most likely live to 92 or so to beat early ss and a balanced portfolio.
so the question is do you want to bet more on markets and rates or more on longevity.
personally i am more comfortable with earlier ss and investing vs longevity .
if one wants to accept the possibility of a smaller balance left since odds are most won’t live to 90 , and trade it for some guarantees then delaying is best .
but any time we risk adjust anything there is a price to pay for that hedge.
risk adjusted returns always have a cost to them for that greater safety
if someone takes early ss and gets the average 5% real return they will do better then someone who doesn’t live to at least 90 .
, at least from a balance perspective which ultimately drives income
ss hedges things at a cost and the cost is if you die younger then 90 and most of us will , you may have less of a balance left if it matters then early ss and investing…
you actually need to most likely live to 92 or so to beat early ss and a balanced portfolio.
so the question is do you want to bet more on markets and rates or more on longevity.
personally i am more comfortable with earlier ss and investing vs longevity .
if one wants to accept the possibility of a smaller balance left since odds are most won’t live to 90 , and trade it for some guarantees then delaying is best .
but any time we risk adjust anything there is a price to pay for that hedge.
risk adjusted returns always have a cost to them for that greater safety
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