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Old 11-20-2017, 02:09 PM   #61
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Originally Posted by Freedom56 View Post
Everyone in early retirement should take SS starting at age 62. If you wait until 66, the break-even is age 78. It makes no sense to wait.
I am assuming that you are assuming everyone is like you. This is definitely not the case for me. I am collecting SS on survivor benefits from the late DW. The amount is not chump change. I will move to my account when I turn 70.
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Old 11-20-2017, 02:15 PM   #62
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Originally Posted by truenorth418 View Post
Have you considered a bridging strategy?

Many analysts recommend waiting until age 70 to tap SS because the annual payout is much greater than at 62.

If you have a large enough portfolio, go on the SS website and determine your your age 70 payout. Multiply that number by 8. Then carve out 8 years worth of payouts and invest that money in safe investments like CDs or treasuries. The remaining portfolio is invested in any asset allocation you are comfortable with.

Then for the next 8 years spend one years worth of your SS reserve money and whatever withdrawal % of the the remaining portfolio you want - 3%, 4% whatever.

Once you hit age 70 the SS reserve will be depleted but your SS payouts will begin and you can continue spending at the same rate as before.

Run the numbers. You are likely to find you can spend more money overall - very safely - using a bridging strategy than if you take SS at age 62.
+1

This strategy is common enough that it needs a name. "Bridging strategy" is the best I've hears so far, but someone may suggest something with more pizazz.
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Old 11-20-2017, 02:19 PM   #63
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We have had numbers run by accountants over the years and they come up with scenarios by which we collect the most dollars. Most suggest me taking SS at 66 and DW at 70. But all of these calculations work out fine only if we live long enough. And no calculations account for reduced value of money as we age. IMO, the personal value of the extra $ I would get in my 80ís wouldnít be worth waiting until 70 to collect. I will get far more satisfaction from a reduced amount in my 60ís than from an increased amount in my 70ís or 80ís. So I will probably take ss at FRA or sooner.
If you are a believer in a 4% guideline (or maybe 3.5% in 2017), and do the math for the bridge strategy above, I think you'll find that you can spend more early in your retirement in you defer SS.
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Old 11-20-2017, 05:45 PM   #64
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I had been planning to take at 62 due primarily to an expected lower than avg longevity based on family history. But now, with 62 only five yrs away, and relatively good health at the moment plus fabulous market performance for now, am considering the bridging strategy, but perhaps only from 62 to 65 to take advantage of the hold harmless provision. Who knows, though, a change in market conditions in the next five yrs could bring me back to the original plan. Perhaps the only real conclusion is keep your financial decision making fluid, and learn as many details (like about the hold harmless provision, thanks to this great site) as one can along the way.
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Old 11-20-2017, 06:19 PM   #65
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Age calculators say that I will live until 86. My family history is that people in my family don't typically live into their 90's.

I can't go with the strategy of taking SS at 62 for the purpose of investing it more wisely than the SS increases. I've been a terrible investor all my life. (How come I can understand quantum mechanics but not investing?). The money I've saved is the equivalent of just keeping it in a mattress.

Something like tax reform is only a couple of votes away and I don't see the political environment changing much in the next few years. I'm just gambling that something will happen to SS and that it will be phased in and I, at 62, will not be affected much.

I will probably go in at 62 (next February) unless I see a tax consequence. Having recently divorced I don't know what my taxes are. I should know in a couple of months.
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Old 11-20-2017, 06:51 PM   #66
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If you are a believer in a 4% guideline (or maybe 3.5% in 2017), and do the math for the bridge strategy above, I think you'll find that you can spend more early in your retirement in you defer SS.
+1. I always fail to understand the posters that state “rather get less now than more later “. If you can’t afford to run a bridged strategy then admit it, but the “less now than more later” just makes no sense. I will assume delaying until 68, and bridge on that higher amount, reducing RMDs and have more from day one. I CAN always change my mind. If you die younger, then it makes no difference, assuming you live the same way you would have, only counting on more income. . If you live long it pays out plus you lived like that from day one. If you are married and care about maximizing your spouses income then delaying makes more sense.
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Old 11-20-2017, 07:01 PM   #67
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Originally Posted by Independent View Post
If you are a believer in a 4% guideline (or maybe 3.5% in 2017), and do the math for the bridge strategy above, I think you'll find that you can spend more early in your retirement in you defer SS.
Thanks - I really need to sit down and analyze the bridge strategy. This is the first I've seen of it - but it looks like you could be right.
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Old 11-20-2017, 07:10 PM   #68
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My husband applied for his SS last week to start in February when he turns 66 (first check in March). I am the higher earner so waiting until I am 70. At that time my husband will also get a bump since 1/2 of my benefit at 66 is greater than his benefit at 66. And since he waited until he was 66 there won't be any reduction to that 1/2. I am still w*rking at my consulting business so my age 66 will still grow (this has been a banner year for me in my business) as I only just turned 64 last week.
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Old 11-20-2017, 07:11 PM   #69
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I believe that Mr. CutThroat has already shown that by taking SS at 70 one gets to spend more money over his/her retirement.

Of course, this assume that one lives to about the average age, IIRC.

As always, it is a very individual choice.
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Old 11-20-2017, 07:19 PM   #70
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Both I and DW are taking ours at FRA (for her, that's 66 next February, for me it's 66 and 10 months (I think) in early 2021.) We don't really need the money, and DW is convinced she won't live into her 80s so we may as well.
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Old 11-20-2017, 07:37 PM   #71
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I'm taking mine when I turn 62 or there about. I can't see any good reason for waiting and I have contemplated this and run the numbers and it is in my beat interest to take it and run as soon as I can.
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Old 11-20-2017, 07:48 PM   #72
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Originally Posted by Bigdawg View Post
You only need 5 years for a deferred FERS retirement pension at age 62
I don't plan on working for the necessary 5 years
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Old 11-20-2017, 08:08 PM   #73
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Iím taking mine at 57 and donít mind the reduction.
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Old 11-20-2017, 08:13 PM   #74
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I don't think "crazy politics" should play into my calculus on when to take SS. Of all the possible variables to consider, that would be pretty far down the list. I'm also less inclined than many here to believe that collecting early will insulate one from subsequent changes. I suppose anything is possible, but I can't imagine two identically-situated 64 year-olds being treated differently because one signed up at 62 and the other didn't. So that's not in my calculus either.

We'll probably start DW's SS at 62 or in a down market shortly thereafter. My benefit is larger and I'll probably die first. So we'll delay mine until FRA or 70, so she'll collect the larger benefit after I'm gone. That's the tentative thinking anyway. We're 56 and 57, so plenty of time to read more threads before a decision has to be made.

BTW, I like these two quotes:

Quote:
Originally Posted by Ronstar View Post
...I will get far more satisfaction from a reduced amount in my 60ís than from an increased amount in my 70ís or 80ís. So I will probably take ss at FRA or sooner.
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Originally Posted by foxfirev5 View Post
Taking it at 62 and hoping I live long enough to regret the decision.
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Old 11-20-2017, 08:23 PM   #75
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My husband applied for his SS last week to start in February when he turns 66 (first check in March). I am the higher earner so waiting until I am 70. At that time my husband will also get a bump since 1/2 of my benefit at 66 is greater than his benefit at 66. And since he waited until he was 66 there won't be any reduction to that 1/2. I am still w*rking at my consulting business so my age 66 will still grow (this has been a banner year for me in my business) as I only just turned 64 last week.
Oh, and I forgot to add I will start drawing 1/2 of my husband's SS when I turn 66 while still letting mine grow.
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Old 11-20-2017, 09:09 PM   #76
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Iím in a different situation that no one has mentioned yet. I HATE MY JOB. Iíll be 63 in March. Plan on taking SS at 65 to match up with Medicare for health insurance. I will quit my job at 64 and a half and pay COBRA for 6 months.

In great health, play a lot of tennis, no debt. I see light at the end of the tunnel.
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Old 11-20-2017, 09:39 PM   #77
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Everyday I'm gambling on my life expectancy, so far it has paid off.

That is why I saved for retirement, if I didn't expect to live long, I would have spent every penny I earned as I earned it.

This is how I retired early, I gambled I would live past the old age of 30 then 40 then 50. So I saved.
Here's hoping you see 70, 80 and 90s.



Best to you,

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Old 11-20-2017, 10:17 PM   #78
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I waffle back and forth about whether I will take at 62. I think for me, it will boil down to whether the ACA is still around when I'm 62. If it is, I will likely hold off until I can get on Medicare. Health insurance premiums are my main financial concern for the future.
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Old 11-20-2017, 10:29 PM   #79
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Originally Posted by ShokWaveRider View Post
My theory is, it takes the policy makers ages to do anything and currently it seems to take even longer. While that may change down the road, I figure I have at least 4... make that 3 years to make a final decision. I m sure nothing of any significance to SS will happen before then.

So the current plan is to take it when I start Medicare, either immediately at 65 or at FRA, I am 64 in January 2018. The ONLY reason I did not take it at 62 was so I could get the Maximum subsidy from the ACA. Otherwise I would have started at 62 for sure. DW will most likely do the same for as log as the ACA lets her, she is 59 next month.
Shok,

My plan matches yours exactly.

Brilliant minds think alike.....

VW
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Old 11-20-2017, 11:38 PM   #80
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I was wondering if someone at 90+ really had regrets on starting benefits early, you answered that question. I figure at 90+ they don't have as much need for $$ as they did when they were younger and may not miss the extra few hundred $$ each month now vs enjoyed having it when they were younger. I totally get trying to get there most you can, but also see the side that says enjoy life now.


85 year old Dad just complained last week that he's sorry he took his at 62 instead of waiting.
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