|
|
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!
|
04-27-2012, 08:47 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
|
Good concise summary, thanks...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
04-27-2012, 08:57 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
|
What are the rules for taking it early, paying it back and then taking it later with a bigger payout?
Take it at 62 and pay it back but take it at 70 for full benefits? When would you have to pay back almost 8 years of payments by? Month before your 70th birthday? A year before?
|
|
|
04-27-2012, 09:01 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
|
Quote:
Originally Posted by explanade
What are the rules for taking it early, paying it back and then taking it later with a bigger payout?
Take it at 62 and pay it back but take it at 70 for full benefits? When would you have to pay back almost 8 years of payments by? Month before your 70th birthday? A year before?
|
No longer available - SS changed the rules last year to eliminate the 'do over' option.
__________________
Numbers is hard
|
|
|
04-27-2012, 09:39 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
|
Like REW noted, they announced Dec 2010 the interest free do-over was over, presumably effective Jan 2011. I was planning on exercising that option, but you know what they say, "if it sounds too good to be true..."
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
04-27-2012, 09:54 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
|
The author is apparently unaware of the elimination of the "do over" aspect despite having an April, 2012 date on the article.
The article is interesting and has some information for married retirees. I could find only one thing in it that is applicable to singles, though - - that women live longer than men, on average, so on average it is advantageous for women to wait before claiming ss and for men to claim it early.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
04-27-2012, 09:56 AM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
Quote:
Originally Posted by Midpack
Like REW noted, they announced Dec 2010 the interest free do-over was over, presumably effective Jan 2011. I was planning on exercising that option, but you know what they say, "if it sounds too good to be true..."
|
Yeah, but my understanding is that there is still a once-in-a-lifetime option but it must be exercised within the first year of collecting. That can help a few people in specific situations (those who still wanted to work, gave up and applied for SS then found a job within a year), but in terms of strategic retirement planning (save it all for a few years and pay it all back for a larger benefit if you're still healthy, using it like an annuity), that train has left the station. I've come to expect that nothing related to retirement benefits that sounds "too good" will be around when I get there, so I've stopped being disappointed when something else happens that I'm too young to take advantage of.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
04-27-2012, 09:58 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,765
|
Quote:
Originally Posted by W2R
The author is apparently unaware of the elimination of the "do over" aspect despite having an April, 2012 date on the article.
|
The way I read the article he's not talking about the old intercst do-over option, which y'all correctly point out is a goner. He mentions a 1 year do-over option, that I haven't heard about before. It sounds different and may still exist. I'm not sure exactly how much good it would do anyone, but it's another SS loophole that may be worthwhile for someone. The article calls it a 1 year interest free loan.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
|
|
|
04-27-2012, 10:00 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
|
Quote:
Originally Posted by harley
The way I read the article he's not talking about the old intercst do-over option, which y'all correctly point out is a goner. He mentions a 1 year do-over option, that I haven't heard about before. It sounds different and may still exist. I'm not sure exactly how much good it would do anyone, but it's another SS loophole that may be worthwhile for someone. The article calls it a 1 year interest free loan.
|
I haven't heard of a second type of do-over, either.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
04-27-2012, 10:04 AM
|
#10
|
Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
|
It looks like paying back your benefits is still possible one time only, within 12 months of receiving your first benefits, and upon request and approval of the SSA:
Retirement Planner: If You Change Your Mind
(Personally, I don't think I'd rely on this strategy as the request could be denied).
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
|
|
|
04-27-2012, 10:05 AM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
Quote:
Originally Posted by harley
The way I read the article he's not talking about the old intercst do-over option, which y'all correctly point out is a goner. He mentions a 1 year do-over option, that I haven't heard about before. It sounds different and may still exist. I'm not sure exactly how much good it would do anyone, but it's another SS loophole that may be worthwhile for someone. The article calls it a 1 year interest free loan.
|
In terms of using this to "buy an annuity" the financial gain is so limited as to be not worth doing since you can only do it in the first year. And the "do over" might not even be a rubber stamp anyway as there is no assurance that it will be approved.
I can see this watered-down option being useful for exactly one situation: where a discouraged job seeker aged 62+ decides to apply for SS because he/she is losing faith in their ability to find another job and they desperately need more income now... but then they eventually find a job within 12 months of starting benefits and no longer need the SS income stream. I'd wager that this is exactly the situation that convinced SSA to keep *any* do-over option around at all.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
04-27-2012, 10:08 AM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
|
Quote:
Originally Posted by Bestwifeever
It looks like paying back your benefits is still possible one time only, within 12 months of receiving your first benefits, and upon request and approval of the SSA:
Retirement Planner: If You Change Your Mind
(Personally, I don't think I'd rely on this strategy as the request could be denied).
|
That's certainly unnerving.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
04-27-2012, 01:26 PM
|
#14
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
|
The "File and Suspend" thing is new to me. It looks like a strategy is:
1. I File and Suspend (I guess I must wait until FRA)
2. Lena takes spousal benefit
3. At max age, I start benefits
4. At Lena's max age, she stops spousal benefits, and starts her own benefits.
This would give us about six years of free money. Sounds too good to be true, so it will probably be eliminated.
|
|
|
04-27-2012, 01:43 PM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
|
Quote:
Originally Posted by ziggy29
Yeah, but my understanding is that there is still a once-in-a-lifetime option but it must be exercised within the first year of collecting. That can help a few people in specific situations (those who still wanted to work, gave up and applied for SS then found a job within a year), but in terms of strategic retirement planning (save it all for a few years and pay it all back for a larger benefit if you're still healthy, using it like an annuity), that train has left the station. I've come to expect that nothing related to retirement benefits that sounds "too good" will be around when I get there, so I've stopped being disappointed when something else happens that I'm too young to take advantage of.
|
Yep, I'd forgotten the one time do-over within the first 12 months. But that's of very limited use compared to the old option, for all the pros and cons your summary makes clear.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
04-27-2012, 02:11 PM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
|
Quote:
Originally Posted by harley
The way I read the article he's not talking about the old intercst do-over option, which y'all correctly point out is a goner. He mentions a 1 year do-over option, that I haven't heard about before. It sounds different and may still exist. I'm not sure exactly how much good it would do anyone, but it's another SS loophole that may be worthwhile for someone. The article calls it a 1 year interest free loan.
|
Having dealt with the SS Administration on the old do-over, I would strongly advise against going through what is certain to be a low grade ordeal to pick up one year, without special circumstances.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
|
|
|
04-27-2012, 03:30 PM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
|
Quote:
Originally Posted by TromboneAl
The "File and Suspend" thing is new to me. It looks like a strategy is:
1. I File and Suspend (I guess I must wait until FRA)
2. Lena takes spousal benefit
3. At max age, I start benefits
4. At Lena's max age, she stops spousal benefits, and starts her own benefits.
This would give us about six years of free money. Sounds too good to be true, so it will probably be eliminated.
|
I think you're right as long as Lena's own benefit is more than her spousal benefit.
|
|
|
04-27-2012, 03:36 PM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
|
Quote:
Originally Posted by W2R
......The article is interesting and has some information for married retirees. I could find only one thing in it that is applicable to singles, though - - that women live longer than men, on average, so on average it is advantageous for women to wait before claiming ss and for men to claim it early.
|
Using that logic wouldn't it also be advantageous for a retired married man to wait before claiming ss since when he passes his benefit passes on to his widow? (assumes that his widow is not in poor health and is similar age or younger).
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|