Hi all. I have had enough of 100% traveling job and the rat race.
I have decided that this is the year! I am sure I have enough savings but I’m only 61. I’ll probably file for SS at the beginning of the new year.
I am healthy , divorced and have zero debt. Insurance is a big unknown to me.. not sure I’ll get any and see if I can go 3 years without.
I can’t get the Fire Calculator to work for me but am interested in what it shows.
I am grabbing SS as soon as I can. I fear the DC clowns are going to push out the 62 year old time to 64-65. I have a gut feeling. I checked the break even point and it’s around 76. I have a lot of savings and no debt.A 401k worth 500000.
I calculated my monthly outlays and estimated food at 400 and a few other floating expenses and my SS should about cover all that.
Whatever you do, do NOT, I repeat... do NOT go without health insurance. One health event and you can kiss that 401k goodbye. In any event, you should be able to manage your income to qualify for ACA subsidies that will make health insurance more affordable and will also cover deductibles and co-pays. Check out healthsherpa.com
Here is a good reason to defer SS.
Let's say that your FRA benefit at age 67 is $24,000/yr and if you claim at 62 it is $16,800/yr.
If you claim at 62 and start withdrawals at 4% from your $500,000 401(k) then your total income is $16,800 from SS and $20,000 from the 401(k) for a total of $36,800.
Alternatively, if at age 62 you notionally carve out $120,000 out of your $500,000 401(k) to substitute for the SS you will get at 67 ($24,000 * (67-62)=$120,000)... the remainder is $380,000 and using the 4% rule that would support inflation adjusted withdrawals of $15,200/yr... when combined with the $39,200 from the 401(k) from 62-67 and $15,200/yr thereafter plus $24,000 from SS is annual income of $39,200.
Would you rather have annual income of $36,800 or $39,200?
BTW, given that there is absolutely no chatter in DC of changing the early start age of 62... it isn't even among all the various "fix SS" proposals... the risk of them moving that start age is somewhere between slim and none.