Taking Social Security at 62 - Point to Ponder

[rayvt]

+1

I track my monthly draws religiously each month. My target draw this year (actual amounts are bogus, but the ratios are accurate) is $4000/mo and to date the actual average is $2900/mo. I'll have to draw $5100/mo for the last half of the year to hit my target.

And we both started taking SS at 62.

[imoldernu]

Googling

"Net Present Value Social Security"

brings up dozens of analytics by the financial community. Example:
http://www.forbes.com/sites/advisor/...rity-benefits/
While many are self serving, the future dollar value calculation is presented with different presumptions of current situation, inflation, future needs, and in some cases more directly tailored to net worth. While never a "one size fits all" solution, looking at some more detailed projections tied to personal situations could make a significant difference over the long haul.

While we took SS @ 62, it was not a decision based on calculation, but need.
As it turned out, because of the higher interest rates at the time, 15 years ago, we are well ahead of the game, and it allowed us to minimize our taxes. Based on the rates for the past five years, the same savings would not apply. (CD rates)

[/URL]

[mickeyd]

Quote:

Originally Posted by imoldernu Googling "Net Present Value Social Security" brings up dozens of analytics by the financial community. Example: What Is The Present Value Of Your Social Security Benefits? - Forbes While many are self serving, the future dollar value calculation is presented with different presumptions of current situation, inflation, future needs, and in some cases more directly tailored to net worth. While never a "one size fits all" solution, looking at some more detailed projections tied to personal situations could make a significant difference over the long haul. While we took SS @ 62, it was not a decision based on calculation, but need. As it turned out, because of the higher interest rates at the time, 15 years ago, we are well ahead of the game, and it allowed us to minimize our taxes. Based on the rates for the past five years, the same savings would not apply. (CD rates) [/URL]

That's a really dramatic snapshot of CD rates over that last few years. Makes me doubly glad that I did not take SS early or @ 66 and stash it in a CD. Instead I am delaying until age 70 and cranking up my future payout 8% annually for four years.

[youbet]

Quote:

Originally Posted by mickeyd That's a really dramatic snapshot of CD rates over that last few years. Makes me doubly glad that I did not take SS early or @ 66 and stash it in a CD. Instead I am delaying until age 70 and cranking up my future payout 8% annually for four years.

It hasn't been too bad a time for buying into the TSM every month though..........