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04-03-2017, 04:48 PM
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#21
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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Interesting! The answers are all over the place.
Virtually all the studies I have read and calculations I have done show that claiming at 70 (at minimum for the higher earning spouse) is financially optimal, when you have the means.
And I've seen compelling arguments that financially (not "sleep better at night" arguments) say that carrying a mortgage into retirement makes sense.
My current plan:
- Wife and I both take SS at 70.
- We carry a 3.875% mortgage into retirement
Both choices can easily be altered if our financial situation (or governmental rule) changes unexpectedly. But I think this gives us the most wealth and liquidity in the long run, along with longevity protection.
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04-03-2017, 05:07 PM
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#22
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,506
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Quote:
Originally Posted by joeea
Interesting! The answers are all over the place.
Agree that the responses are interesting, but it doesn't surprise me given past discussions. ...
Both choices can easily be altered if our financial situation (or governmental rule) changes unexpectedly. But I think this gives us the most wealth and liquidity in the long run, along with longevity protection.
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You are far from alone in this--on this forum. It is one thing to choose between the options in these two areas and quite another to "have to" go into retirement with a mortgage and "have to" take social at 62. (Not saying that "having to" means someone is doomed, but it's a different story when one is in a position to weigh the options and, for example, choose to not write a check for the loan payoff.)
__________________
OMY * 3 2ish Done 7.28.17
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04-03-2017, 06:03 PM
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#23
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
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We paid off our mortgage before I quite my job in 2013. I would not have felt comfortable having a mortgage and quitting.
For now our plan is to both take SS at 70. We are both in reasonably good health and believe we will live past 82, which is roughly the break even point. And, we need as much time as possible to convert our Traditional IRA to a Roth IRA, and want to be in as low an income bracket as possible to do so. So delaying SS until 70 just gives us a few more years to do so.
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04-03-2017, 06:16 PM
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#24
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Thinks s/he gets paid by the post
Join Date: Sep 2002
Location: Silicon Valley
Posts: 1,008
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Quote:
Originally Posted by nun
I paid of my mortgage a couple of years before I retired at age 53.
I will take US SS at age 62 and UK SS at age 67
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I've also got two SS type payments - US and Canada. My thinking is to take the smaller one at the earliest possible age (Canada at 60) and the larger one at the latest possible age (US at 70). That way I minimize the amount of the WEP reduction and get the other benefits of delaying. Of course, that could change if circumstances between now and then change since I'm only 52 now.
As for the mortgage question in the original post, we retired last year and haven't paid it off yet but we will be selling it and moving next year. From there no mortgage going forward.
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04-03-2017, 06:28 PM
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#25
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Started taking widow's benefits at age 61 and will switch to my own when I turn 70.
We paid our mortgage off when we were in our thirties and was one of the best moves we made. So glad I don't have a mortgage payment hanging over my head; it might have prevented me from retiring.
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04-03-2017, 06:55 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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I'm not only carrying a mortgage at 3.5%, but I got the new house and new tax rate just 2 years before I retired. Risk taker I am. My husband is taking SS at age 64.5, I will be taking it at 70.
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04-03-2017, 07:04 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Jan 2017
Location: Des Moines
Posts: 1,389
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62 for DH, planning on 62 for me too. Paid off our house seven years ago and never looked back.
__________________
Retired in 2013 and we are living the dream!
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04-03-2017, 07:05 PM
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#28
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Will take my mortgage into retirement for many reasons at 3% fixed.
SS: wife 67, me 70. Optimal lifetime benefits.
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04-03-2017, 08:39 PM
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#29
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2014
Posts: 7,373
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Age 64, started collecting Widow's benefits last year, will collect on my record at age 70. Took out a $100k mortgage 2 years ago; 15 year, 3% fixed. Payment is $700, so very manageable. I'm from the group that prefers to borrow at 3% rather than take it out of investments yielding more.
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04-03-2017, 09:07 PM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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Quote:
Originally Posted by pb4uski
Will either both claim at FRA or DW will claim at FRA and I will wait until 70 (I i.had much more earnings than DW). Meanwhile, since we are now both 62 SS is available to us should the stuff hit the fan with respect to our investments and we want to start it.
No... in fact we did the opposite.. we refinanced from 4.375% to 3.375% just before I went off of payroll.
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Just for kicks I ran an Investment Performance report in Quicken from the date we refinanced to today... our average annual earnings rates has been 8.91%... things would have to go sideways in a really bad way from here for that to end up being a poor decision.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-03-2017, 10:52 PM
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#31
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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Quote:
Originally Posted by pb4uski
Just for kicks I ran an Investment Performance report in Quicken from the date we refinanced to today... our average annual earnings rates has been 8.91%... things would have to go sideways in a really bad way from here for that to end up being a poor decision.
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It is hard to argue with success.
Even with say a 3% return and a 4% mortgage, that would be a 1% loss. On a $300K mortgage that would only be a $3K loss in one year for keeping the mortgage.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
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Social Security and Paid-off Mortgages?
04-04-2017, 07:04 AM
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#32
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Thinks s/he gets paid by the post
Join Date: May 2014
Posts: 1,867
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Social Security and Paid-off Mortgages?
Paid off mortgage about 15 years ago ... SS next January will be 63.5
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04-04-2017, 07:08 AM
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#33
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Dryer sheet aficionado
Join Date: Dec 2016
Posts: 37
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Quote:
Originally Posted by rayinpenn
Paid off mortgage about 15 years ago ... SS next January will be 63.5
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Paid off mortgage 10 years before RE at 55. Plan to take SS at 70 and DW at FRA
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04-04-2017, 10:37 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Sep 2016
Location: Acworth
Posts: 1,214
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Currently on track to pay off the mortgage about 3-5 years into retirement (depending on if I make my "hoping for" ER or my "planning for" ER date). At 2.5%, I'm only paying it down a little faster than the minimum because it makes me feel better doing so.
I plan for taking SS at 62, but if market performance doesn't pan out towards the "historically bad" scenario, I'll probably push it off some. SS plus my VA income is expected to cover my current expense and provide ~$1k extra/month spending money for having fun but if my portfolio is still looking pretty good at 62 I'll keep using that instead of SS for my spending money.
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04-04-2017, 10:58 AM
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#35
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,181
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The earliest we plan on taking SS is 63. Our decision will be based on our financial situation at the time. If we need it, or want to enhance our lifestyle, we'll take it. If not, we will postpone and re-evaluate every year until 70. I would have to live beyond
Our Mortgage rate is 2.87% with a low payment and projected payoff in 10 years. We do not have a need to rush and pay it off.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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04-04-2017, 11:06 AM
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#36
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,526
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SS at 62, paid of the mortgage in 1999 3 years before ER'd at 52 in 2002. Now at age 67 no regrets over either decision.
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04-04-2017, 11:06 AM
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#37
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Dryer sheet wannabe
Join Date: Apr 2016
Location: Ridgeland
Posts: 18
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Paid off the mortgage about 10 years ago. The plan is for DW to file for SS in 2018 at 67 and me to file at 70 in 2024.
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04-04-2017, 11:13 AM
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#38
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,099
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No Mort.
Will take SS at 70 for higher earner, probably the same for the lower earner.
Meanwhile do Roth conversions, and live off savings.
I just don't like debt, buy my cars with cash (limits me to not buying Ferrari's), pay off CC every month.
I understand I could play the % game with a low rate mort. and invest in stock market pay the tax and come out ahead over the years.
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04-04-2017, 11:15 AM
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#39
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
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Paid off last mortgage at 46 year old.
Retired at 50.
Started SS at 63, decided that since it was subject to WEP and wife would always get more under her record, survivor benefit wasn't a factor. Also, my then minor children would be eligible for SS for many years at no cost to me.
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04-04-2017, 12:19 PM
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#40
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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I've yet to see anyone have any regrets about their mortgage or social security start date.
It doesn't seem to matter if the mortgage was paid off early or never.
It doesn't seem to matter if social security was claimed at 62, 65, 70, or anything in between.
Everyone indicates that they have no regrets.
I guess that's a good thing. We make our decisions as we think best, then never look back.
And for most folks on this forum, the choices are likely between good and better anyway.
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