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Need help convincing Sugar Mama
Old 07-27-2020, 03:14 PM   #1
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Need help convincing Sugar Mama

To not have me take my SS at 62....

Pensions:
Sugar Mama = state employee = 7100/month take home = 85,200 COLA adjusted and health care taken out for life, full survivor benefits, reduced donít have the amount for either pension.

Slug Daddy = federal employee = 1700/month take home= 20,400 Cola adjusted and health care taken out for life, full survivor benefits

Total year = 105600, expenses ~80k / years

Mama and Daddys IRAís 2.2Mil total, no Rothís yet, waiting till I retire in Dec 2020 to start Roth conversions, we made to much (MAMA made to much ;-)

SS 62/66 8 months/70 for Mr. Slug: month 1993/2817/3605, year 23900/33800/43260

So my fidelity roll over dividends for last three years in December is 2017-44.8k, 2018- 51k, 2019-32.5k
Also getting 880/month bond dividends

My TSP (Iím 62 ) I could move over to L Fund income and start a monthly check of XXX > 23900 as an example

I could take the dividends from fidelity and move them into our accounts to use as we see fit
.
My thought is either one of these is better than taking the SS at 62 which she wants me to do.

Thoughts please
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Old 07-27-2020, 06:15 PM   #2
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I recognized some of those words, but have no idea what

"SS 62/66 8 months/70 for Mr. Slug: month 1993/2817/3605, year 23900/33800/43260"

means. That probably just means I'm no help. I'm sure some federal/state employee types will sign in who habla your retirement.
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Old 07-27-2020, 06:26 PM   #3
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Start out at opensocialsecurity.com

It is a neat tool that calculates not only what your would receive if you are alive to receive it but also, based on mortality tables, the likelihood that you will be alive to receive it. Check the Advanced Options box at the top. I use 2017 Preferred Non-smoker mortality and a real discount rate of ~2%.

But putting aside any adjustments resulting from your pension, it is basically giving up $1,993 a month for $96 months... or $191,328... to receive $19,344 a year, plus COLA adjustments, for life.... ignoring the COLA that is a payback of about 10 years... or from 80 onwards it is all gravy.... the average age is beyond 80.

Some will say... but, you'll have more to spend in years where you can travel and all if you take earlier... but probably not true in your case since you have plenty.
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Old 07-27-2020, 06:27 PM   #4
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Quote:
Originally Posted by calmloki View Post
I recognized some of those words, but have no idea what

"SS 62/66 8 months/70 for Mr. Slug: month 1993/2817/3605, year 23900/33800/43260"

means. That probably just means I'm no help. I'm sure some federal/state employee types will sign in who habla your retirement.
I think all that he is saying is that he expects to receive $1,993/month if he claims at 62, $2,817 per month if he claims at age 66 and 8 months and $3,605 if he claims at age 70.

The other amounts are just annual amounts (rounded).
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Old 07-27-2020, 07:36 PM   #5
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Given your situation, it probably doesn't matter much either way. Without knowing how long you will each live it's impossible to calculate anyway.

I say, flip a coin. Seriously.
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Old 07-27-2020, 08:30 PM   #6
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L Fund Income is a GREAT fund. A sleeper. Everyone is obsessed with the G fund but L income is much better IMO. You never really stated why you don't want to start SS at 62. Looks like you don't need it. It might be counter productive to your plan to do roth conversions.
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Old 07-27-2020, 09:15 PM   #7
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Yes... for evey $1 you receive in SS it will be 85c of low cost Roth conversions that you cant's do.

DW keeps wanting to take her SS and that is the reason that I use to convince her to hold out until her FRA.... she'll be capped at half of my PIA at her FRA since she was a SAHM so there is no use to her deferring beyond her FRA... but I will miss that extra headroom for low cost Roth conversions.
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Old 07-27-2020, 09:33 PM   #8
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I gotta stop visiting these threads. Seems to be a common theme in recent months. DW and I have a solid retirement set up, but the numbers being tossed out these days makes me wonder.

Congrats. I doubt you will suffer financially regardless of what you decide on SS.
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Old 07-27-2020, 10:47 PM   #9
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I gotta stop visiting these threads. Seems to be a common theme in recent months. DW and I have a solid retirement set up, but the numbers being tossed out these days makes me wonder.
I concur.
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Old 07-28-2020, 05:02 AM   #10
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I concur.


I concur completely.

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Old 07-28-2020, 06:35 AM   #11
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In concurrence with those who contributed.
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Old 07-28-2020, 09:02 AM   #12
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Do you mean the numbers are higher than you'd expect, or lower?

Quote:
Originally Posted by statsman View Post
I gotta stop visiting these threads. Seems to be a common theme in recent months. DW and I have a solid retirement set up, but the numbers being tossed out these days makes me wonder.

.
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Old 07-28-2020, 10:09 AM   #13
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Do you mean the numbers are higher than you'd expect, or lower?
Higher than ours. By a significant amount. And a lot of the new postings are in that stratosphere.
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Old 07-28-2020, 03:38 PM   #14
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Originally Posted by pb4uski View Post
Start out at opensocialsecurity.com

It is a neat tool that calculates not only what your would receive if you are alive to receive it but also, based on mortality tables, the likelihood that you will be alive to receive it. Check the Advanced Options box at the top. I use 2017 Preferred Non-smoker mortality and a real discount rate of ~2%.

But putting aside any adjustments resulting from your pension, it is basically giving up $1,993 a month for $96 months... or $191,328... to receive $19,344 a year, plus COLA adjustments, for life.... ignoring the COLA that is a payback of about 10 years... or from 80 onwards it is all gravy.... the average age is beyond 80.

Some will say... but, you'll have more to spend in years where you can travel and all if you take earlier... but probably not true in your case since you have plenty.
Just got latest SS forecast for Daddy monthly 1993/2817/3605.

using default has daddy taking at 67 9 Mama at 70 for total of 1.3 Mil
Put in your advanced options has Mama taking at 62 1 and daddy at 70 for a total of 930K ??

And i am a non smoker, healthy except high cholesterol. mom died from aneurysm, but dad is 87 and still breaks his age playing golf and being active,,,

what am i missing PB??
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Old 07-28-2020, 03:44 PM   #15
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Compromise and take at 64 and invest it aggressively to get more than the 8% return. Money now is better than maybe getting money later.
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Old 07-28-2020, 04:07 PM   #16
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Do you mean the numbers are higher than you'd expect, or lower?
seriously, you cannot tell that these numbers are astronomically high for some of us that live in the real world.
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Old 07-29-2020, 05:34 AM   #17
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Just got latest SS forecast for Daddy monthly 1993/2817/3605.

using default has daddy taking at 67 9 Mama at 70 for total of 1.3 Mil
Put in your advanced options has Mama taking at 62 1 and daddy at 70 for a total of 930K ??

And i am a non smoker, healthy except high cholesterol. mom died from aneurysm, but dad is 87 and still breaks his age playing golf and being active,,,

what am i missing PB??
Under the advanced option, one can also test various death ages. If you have longevity in your family it might be worth checking out.
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Old 07-29-2020, 06:26 AM   #18
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Do you mean the numbers are higher than you'd expect, or lower?
Median US income is ~$60k, if I add his numbers correctly (very coded) I get ~$250k. His SS Question is what they call a "first world problem".
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Old 07-29-2020, 06:42 AM   #19
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Originally Posted by statsman View Post
I gotta stop visiting these threads. Seems to be a common theme in recent months. DW and I have a solid retirement set up, but the numbers being tossed out these days makes me wonder.

Congrats. I doubt you will suffer financially regardless of what you decide on SS.
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I concur.
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Originally Posted by Murf2 View Post
I concur completely.

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Originally Posted by statsman View Post
Higher than ours. By a significant amount. And a lot of the new postings are in that stratosphere.
Quote:
Originally Posted by rothlev View Post
seriously, you cannot tell that these numbers are astronomically high for some of us that live in the real world.
So?

As long as your expenses are in line with your projected income, you can retire. What difference does it make if someone else has more than you? Hint: someone else will always have more than you!

A high percentage of the people world-wide could be saying the same about you!

-ERD50
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Old 07-29-2020, 07:50 AM   #20
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Seems straight forward to me. If you don't need the money, let it ride and keep increasing until 70, or maybe a little sooner if the money is somehow needed earlier.
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