Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Your comments welcome
Old 09-19-2018, 06:09 AM   #1
Dryer sheet wannabe
 
Join Date: Feb 2016
Location: hebron
Posts: 19
Your comments welcome

My DW and I are both 60 and just retired. DW has a small pension (with healthcare available) and I have none so we will be living mostly on distributions from our investments.

As a retired teacher (and subject to the windfall elimination provision), DW will not receive much social security (~$2,200 per year at 62) and upon my death she will only receive a small spousal benefit (~$13,000 per year).

In order to provide for her after my death, I’m considering taking SS at 62 to minimize the required withdraw from our investments to try and maximize our investment total to ensure DW has sufficient funds to provide for her after my death.

Is this a possible strategy? What am I missing?
davidbeitz is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-19-2018, 07:12 AM   #2
Recycles dryer sheets
 
Join Date: Feb 2015
Posts: 296
Quote:
Originally Posted by davidbeitz View Post
My DW and I are both 60 and just retired. DW has a small pension (with healthcare available) and I have none so we will be living mostly on distributions from our investments.

As a retired teacher (and subject to the windfall elimination provision), DW will not receive much social security (~$2,200 per year at 62) and upon my death she will only receive a small spousal benefit (~$13,000 per year).

In order to provide for her after my death, I’m considering taking SS at 62 to minimize the required withdraw from our investments to try and maximize our investment total to ensure DW has sufficient funds to provide for her after my death.

Is this a possible strategy? What am I missing?

Sure this is a strategy and has been discussed before.
The problem is that you are making an assumption that the market will keep chugging along and your investments will continue to grow at x % for the next decade or two.


Who knows? What if we enter a 10 year bear or even a flat market for the next decade? Look at the S&P 500 from 12-31-1999 to 12-31-2009.
Even with reinvested dividends....the return was -0.95%. Yuck!!!


Maybe hedge your bets a little? Wait until FRA for SS and draw a little from investments and then at FRA stop withdrawing from investments and let them grow from there. This will guarantee you ( and your wife) a bigger benefit down the road should you predecease her.
MrLoco is offline   Reply With Quote
Old 09-19-2018, 08:23 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,952
Small spousal benefit you have a number where did it come from? You do realize that if you take at 62 that spousal benefit will be smaller and upon death it's a survivor benefit not a spousal. Make sure you are using the correct number..
ivinsfan is online now   Reply With Quote
Old 09-19-2018, 11:50 AM   #4
Recycles dryer sheets
 
Join Date: Dec 2013
Posts: 174
This is one of those 'there is no one-right answer' problems. In 'our' particular circumstances, I was concerned about my younger spouse 'enjoying' her later 'golden' years. Over my lifetime, I have seen the stock market rise and fall a number of times, and I am convinced it will happen again, so I chose to guarantee her income by my waiting for SS until 70 and she taking SS at 66. This means she will get 100% of my maximum social security payments when I throw away my bucket list. As to SS going broke? No way! Too many of us older farts vote religiously (as in often), and I think contribution amounts and age eligibility increases are more on the horizon
btdt22 is offline   Reply With Quote
Old 09-20-2018, 06:31 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,172
May I suggest that you rename your Title if possible (or start a new thread if not). As you can see from the response to this other thread
http://www.early-retirement.org/foru...rly-93511.html

folks around here are like sharks when it comes to the subject of when to take SS. Perhaps including some words resembling that in your title would attract more attention than your very general one.
kaneohe is offline   Reply With Quote
Old 09-20-2018, 07:45 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,952
Another problem with your question is not enough detail. Such as nest egg, projected expenses and such. Flesh it out a little, change your title and you will get some feedback.
ivinsfan is online now   Reply With Quote
Old 09-20-2018, 07:52 AM   #7
Recycles dryer sheets
Lukeee's Avatar
 
Join Date: Feb 2018
Posts: 145
Could a 10 or 15 year term life insurance help resolve the issue. Or a staggered policy of (for example) 200K policy for 15 years and a 150K 10 year policy. Staggering the terms will lower the costs (you will need less money as she gets older).
__________________
Person who will often put his foot in his mouth and not realize it.

2020 or bust!
Or
Perhaps 2021...2022...NVM
Lukeee is offline   Reply With Quote
Old 09-21-2018, 05:53 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 9,343
Quote:
Originally Posted by Lukeee View Post
Could a 10 or 15 year term life insurance help resolve the issue. Or a staggered policy of (for example) 200K policy for 15 years and a 150K 10 year policy. Staggering the terms will lower the costs (you will need less money as she gets older).


That is what I had to do, to bridge early retirement pitfalls for my GF. I bought a 20 year term, not for the next 10 years she is still working, but the 60-70 year stretch the following 10 years when she plans to retire. If I died right after her retiring she could get in trouble financially down the road. Now she can delay SS, leave 401k alone, and just live off my money and her smaller pension.
Mulligan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Your feedback welcome - tired of working, want to do my own thing! fern Hi, I am... 15 10-14-2016 01:06 PM
Welcome to Frontier Communications your new service provider Lakewood90712 Other topics 25 06-11-2016 10:35 AM
My plan - comments welcome Karmaduck Hi, I am... 41 05-25-2016 05:30 AM
Age 28, new to the forum, suggestions/comments welcome jags86 Young Dreamers 9 11-19-2014 09:18 PM
FIREd at 37 with Net Worth of approx 5MM comments/criticism welcome sonomaguy Hi, I am... 47 10-26-2014 04:05 PM

» Quick Links

 
All times are GMT -6. The time now is 01:43 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.