Signed up for Social Security

[dm]

I retired 12 years ago, but now I feel old. I’ll be 62 in May and went ahead and filed. Took about 5 minutes online and today I see that I’m approved. First check will be deposited July 24.

I’ve read all the threads about all the various scenarios about when to take the money. The wife has a pension so WEP affected some of the desisions, along with few in my family living much past 80.

I’m not sure what we will do with the extra, but we will think of something. I’ll have to check back to the “blow that dough” thread.

 

[dvalley]

Anyone who doesn't know what to do with their extra money I can send you my address

Congrats! Good to know filing is pretty easy and only takes minutes online. I'll be claiming it at 62 (18 yrs from now). I figure I'd take my money from the govt while I'm alive and leave my investments to the heirs -if there're any left after I'm gone.

 

[ziggy29]

Congratulations. Save some for me!

 

[VanWinkle]

Congrats on the extra cash flow, retail therapy may be the answer!!

 

[LakeRat1]

Congratulations ..... My DW began drawing at 62, this is my plan as well ....only 5 more years ....

 

[Dtail]

Congrats.
Managing ACA, so will wait at least until 65 y.o.

 

[PatrickA5]

Congrats!
I can't wait to see my first SS deposit in the bank. Only 1 1/2 years until I'm 62, but might wait until 64/65 in order to do some more Roth conversions. It'll be tempting though!

 

[ziggy29]

Congrats!
I can't wait to see my first SS deposit in the bank. Only 1 1/2 years until I'm 62, but might wait until 64/65 in order to do some more Roth conversions. It'll be tempting though!

I'm still doing research on it. I'm 53 and DW is 50, so a lot can change in the next decade. But so far it seems like she should file at 62 and I should file at 70 (if all goes to plan). That assumes she will retire at 60 which is currently "the plan".

One thing we are doing is having me take SEPP through 72t from my IRAs, and using some of that income to allow DW to put more of her income into her 403B and HSA, since she is subject to self employment tax on her income and when 403B and HSA deductions are taken out by the employer in a cafeteria plan, the contributions are exempt from SECA taxes. The net effect is to use a lot of my income, which is not subject to self employment tax, to defer her income which would otherwise be subject to 15.3% self employment tax.

 

[Cut-Throat]

I’ve read all the threads about all the various scenarios about when to take the money. The wife has a pension so WEP affected some of the desisions, along with few in my family living much past 80.

What age for 'end of plan' do you use to plan for your overall retirement portfolio?

 

[Bikechuck]

I turn 66 in June and just filed a restricted application for benefits under my wife's work record so I will begin receiving 1/2 of her PIA this June. My wife had to file before I could do so, so she filed in January at age 64.5.

I plan to let my benefit continue growing until age 70. This will provide a nice higher amount for my wife when I croak as she is likely to outlive me.

 

[dm]

What age for 'end of plan' do you use to plan for your overall retirement portfolio?

According to FIRECalc we have a success rate of 100% for a 40 year period. We will probably up our spending a bit from time to time. But there will also come a time to sell the plane, which will reduce our spending quite a bit.

 

[Cut-Throat]

According to FIRECalc we have a success rate of 100% for a 40 year period.......

So, your Portfolio Plan is 102, and your Social Security Plan is Age 80... Do you see any disconnect?

 

[dm]

So, your Portfolio Plan is 102, and your Social Security Plan is Age 80... Do you see any disconnect?

I need to up my spending or expect my kids to have a nice inheritance. My wife has already had to deal with cancer and also has heart issues. My family also has rarely made it past 80 due to heart problems also, the ones that have have dementia so the future is not looking good.

On the other hand if I’m wrong we still can live a very nice lifestyle. If I lose out on some SS that’s not the end of the world.

 

[street]

That is awesome and congratulations, just one more milestone in one's life.

I plan on taking mine early also, I want it now to spend while I'm young enough to still enjoy it. I don't need it any more now then at 70 so why not take it now.

 

[OHjosh]

Congrats.
Managing ACA, so will wait at least until 65 y.o.

I'm not sure I get this comment. Do you mean that one must declare SS as income towards calculating any ACA subsidy? l know that...

My advisor just suggested I file for SS, effective on my 64th birthday. They think a recession is coming in 2020 and this will reduce what I need to take out from my nestegg during the recovery. SS + an annuity coming due in Feb 2020, will cover the majority if not all of my expenses until tax torpedo time. (That is going to be an unavoidable headache!)

The difference will be about $400 a month and the catch up appears to be the magical 78 years of age. Any naysayers here?

 

[jldavid47]

My advisor just suggested I file for SS, effective on my 64th birthday. They think a recession is coming in 2020 and this will reduce what I need to take out from my nestegg during the recovery. SS + an annuity coming due in Feb 2020, will cover the majority if not all of my expenses until tax torpedo time. (That is going to be an unavoidable headache!)

The difference will be about $400 a month and the catch up appears to be the magical 78 years of age. Any naysayers here?

I am not going to be a naysayer as I don't know the particulars of your situation, but I will point out that your advisor has no special predictive powers. What ever asset classes you are invested in could turn down whether there is a recession or not. It's impossible to predict the future, but it is possible (necessary) to manage your risk. The hoped-for rate of return on your investments should never be the only consideration.


Having said that, why not wait and see what happens? If there is no recession and/or the markets keep going up you will be gaining a bit of additional monthly SS income for every month you wait.

 

[RunningBum]

I'm not sure I get this comment. Do you mean that one must declare SS as income towards calculating any ACA subsidy? l know that...

Then you get the comment after all. SS counts towards MAGI, and at a minimum reduces your subsidy, and for many of us, would push us over the cliff and eliminate the subsidy.

My advisor just suggested I file for SS, effective on my 64th birthday. They think a recession is coming in 2020 and this will reduce what I need to take out from my nestegg during the recovery. SS + an annuity coming due in Feb 2020, will cover the majority if not all of my expenses until tax torpedo time. (That is going to be an unavoidable headache!)


The difference will be about $400 a month and the catch up appears to be the magical 78 years of age. Any naysayers here?

You provided only one scenario, taking at 64, so I don't know what the other scenario is that has a $400 difference.

Personally I'd wait and see if a recession and stock market fall really happens before filing. I think it's a good idea to reduce what you take from your nest egg when the market is low, but you can react to that rather than guess when it's going to happen.

 

[Dtail]

Then you get the comment after all. SS counts towards MAGI, and at a minimum reduces your subsidy, and for many of us, would push us over the cliff and eliminate the subsidy.

Yes that was my exact point. I want my MAGI income coming from TIRA withdrawals/TIRA to Roth conversions.

 

[OHjosh]

I am not going to be a naysayer as I don't know the particulars of your situation, but I will point out that your advisor has no special predictive powers. What ever asset classes you are invested in could turn down whether there is a recession or not. It's impossible to predict the future, but it is possible (necessary) to manage your risk. The hoped-for rate of return on your investments should never be the only consideration.

Having said that, why not wait and see what happens? If there is no recession and/or the markets keep going up you will be gaining a bit of additional monthly SS income for every month you wait.

The $400 difference per month is SS at 64 vs. FRA. I have conflicting ideas about the advice. Of course the advisor cannot predict a recession. No one can. I cannot predict how long I might live, or live life with good health.

To be honest, the driver for me is that I hate talking all my cash spending out of my nestegg right now. So why not take it now?

I know waiting to take SS is one of the best "investments" I can make. On the other hand, I won't save much RMD-wise by using the nestegg while waiting to take my SS. So why not take the monay now? Is a puzzlement.

I have a four months to decide... and then some if I choose.

 

[joeea]

I’ll be 62 in May and went ahead and filed.

I’m not sure what we will do with the extra, but we will think of something.

It's interesting that you decided to start your benefits at 62, but haven't figured out what you'll do with the money.

Care to talk about how you decided that 62 was the right start?

 

[joeea]

My advisor just suggested I file for SS, effective on my 64th birthday. They think a recession is coming in 2020 and this will reduce what I need to take out from my nestegg during the recovery. SS + an annuity coming due in Feb 2020, will cover the majority if not all of my expenses until tax torpedo time. (That is going to be an unavoidable headache!)

The difference will be about $400 a month and the catch up appears to be the magical 78 years of age. Any naysayers here?

You have an advisor making a recession prediction for next year?

And who suggests taking SS early so as not to reduce their assets under management? In spite of a breakeven at 78 years old?

I say nay.

 

[RunningBum]

The $400 difference per month is SS at 64 vs. FRA. I have conflicting ideas about the advice. Of course the advisor cannot predict a recession. No one can. I cannot predict how long I might live, or live life with good health.

The point is you don't have to be able to predict a recession to take full advantage of selling off less of your nest egg at a low. You can react when it happens and it works just as well.

And in fact if you think the market is high now, selling off a little more of your nest egg while its high is better. "Sell High, Buy (or at least Hold) Low". So it's actually better to react than to predict.

I mean, this is like saying you don't want to sell a stock now because you think it's going to go down in the future. That makes no sense.

To be honest, the driver for me is that I hate talking all my cash spending out of my nestegg right now. So why not take it now?

Since you asked the question, my answer is to learn to make logical decisions about your money, not emotional decisions.

When it comes down to it, $400 isn't much (would be more if you compared to taking at 70), and there are a lot of other factors you can't control (like your longevity and SS solvency), so do whatever you want.

But when you are trying to use some logic, like factoring in a recession, IMO you ought to be using the logic correctly, not in reverse. I blame your advisor for that. Is he paid a % of your assets under management? If so, he has an incentive to keep you from spending down your assets that may conflict with your best interests. Ask him why you shouldn't wait for the recession before taking SS.

 

[audreyh1]

$400 a month is $4,800 a year. Doesn’t seem that negligible......

 

[dm]

It's interesting that you decided to start your benefits at 62, but haven't figured out what you'll do with the money.

Care to talk about how you decided that 62 was the right start?

If I knew when I was going to die, the planning would be easy. Also what does the future hold for SS? Will it be means tested in the future?

The money will be used of coarse, it will mean I will not need to withdrawal from my IRA, or at least a reduced amount. So my breakeven date will change depending on my investment returns.

 

[Cut-Throat]

And we're off ..............................