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Old 09-13-2021, 07:26 AM   #141
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Interesting discussion, hopefully it will stay away from politics, especially the unhelpful kind ...
My first chuckle of the day! Is there any other kind?

But on topic...

Several mentioned that one can wait one more year (yes, OMY again). So I'll mention it again. If the decision is now here, in your face, it may be prudent to roll up your sleeves and continue in several of the discussions that pop up monthly.

And it actually plays out as waiting one more month (OMM). No one froces you to wait an entire year.
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Old 09-13-2021, 09:15 AM   #142
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One more time for those who missed it. You can spend more starting at age 62 by taking SS at 70.

Two caveats - (1) you don't care about leaving an estate (yes, a big IF for many). (2) You have the funds to finance your lifestyle from age 62 all the way through 69).
[Emphasis added.]
I agree with listing these caveats. However, I think it is worth emphasizing that one does not know in advance whether claiming early or late will result in leaving a bigger estate (for a given level of spending).
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Old 09-13-2021, 09:54 AM   #143
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I agree with listing these caveats. However, I think it is worth emphasizing that one does not know in advance whether claiming early or late will result in leaving a bigger estate (for a given level of spending).
The caveats are not related to taking SS at 70 vs 62. The caveats are related to the specific proposal they made to take a big chunk of money (the sum of the SS payments from 62 to 70) and just put it into cash.
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Old 09-13-2021, 10:41 AM   #144
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^^^ It is more spend it rather that put it into cash.... it could be that you are 100/0 and just do periodic withdrawals for spending.

I'm deferring SS but don't have any funds earmarked to carry us until 70.

If I was to have some dedicated funds, I'd probably create a CD ladder.
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Old 09-13-2021, 11:10 AM   #145
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A relevant article on the subject that just crossed my inbox:

https://obliviousinvestor.com/social...ected-outcome/

Quote:
When it comes to Social Security planning, people often take one of two approaches:
  • The insurance approach: Social Security is meant to be longevity insurance, so in order to get the most protection from it, I will delay until age 70.
  • The maximizing approach: I want to get the most total dollars (or present value of dollars) from Social Security over my lifetime, so I will file at whatever age results in the highest expected sum. (Note: this second approach is what calculators such as Open Social Security are doing — recommending the filing age(s) that maximize the expected present value of dollars collected.)

In short, most people should be accounting for both perspectives in their planning. ...
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Old 09-13-2021, 11:40 AM   #146
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^^^^^^ Very helpful. This article should be reposted every time this question pops up on the Forum, which seems to be weekly.
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Old 09-13-2021, 11:44 AM   #147
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The caveats are not related to taking SS at 70 vs 62. The caveats are related to the specific proposal they made to take a big chunk of money (the sum of the SS payments from 62 to 70) and just put it into cash.
I guess we will have to agree to disagree over the origin of those caveats.
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Old 09-13-2021, 12:13 PM   #148
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Take SS at 62, and once the window of opportunity has passed to reverse the decision, and you are stuck for life.
To hopefully shed a ray of hope for those feeling stuck...

Once you reach FRA, you do have an option to suspend. As with most features, there are no doubt some nuances that I won't attempt to highlight here.

Sequence of return risk is a big unknown when making the decision at 62. FRA for most comes about half way from 62 to 70. Doing a sanity check at FRA makes sense. Circumstances have likely changed -- maybe in a pleasant direction, maybe not.

I don't know this is really a strategy, but at least a toll in the toolbox for those who might otherwise have regret
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Old 09-13-2021, 01:10 PM   #149
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Interesting analogies lately on SS:

- bond/fixed income allocation analogy: points toward maximizing present value of SS streams

- longevity insurance: points towards delaying SS to have the maximum annuity payment upon demise of the higher earner in a two person household

I espouse the former, the present value approach. Why? It maximizes the present value of my net worth. Why not the latter? I believe that insurance always is in the interest of the issuer (SSA) and not the insured.
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Old 09-13-2021, 01:23 PM   #150
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If you have a low earning spouse, it makes a difference how both of you file, plus your spouse's benefits never really go up after you reach your PIO, except as your PIO slowly goes up:

https://www.kitces.com/blog/why-it-r...rity-benefits/

Just a heads up on anyone looking to file. SS is swamped. I filed three months in advance and it might happen on my effective date, but my DW filed for spousal benefits a week after I applied. It takes a phone appointment to file for spousal benefits. Her "phone" appointment is in two months! Yep, benefits are retroactive, but still, amazing...
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Old 09-14-2021, 07:36 AM   #151
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If you have a low earning spouse, it makes a difference how both of you file, plus your spouse's benefits never really go up after you reach your PIO, except as your PIO slowly goes up:
I meant PIA (Primary Insurance Amount).
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