Cut-Throat
Thinks s/he gets paid by the post
No, I said the government knows the odds and they aren’t giving anything away.
Yup, just like Insurance Companies. But that doesn't mean you shouldn't buy insurance.
No, I said the government knows the odds and they aren’t giving anything away.
I've seen many calculations here that make my head hurt as well.
I'm just curious if anyone has thrown in the often overlooked variable that SS payments are only taxed at 85% (during the 8-year delay window) versus IRA withdrawals being taxed at 100% during the same period.
I'm sure it's been done but my ER laziness precludes me from any further searches.
I find all these arguments funny and pretty much pointless. Unless you know exactly when you are going to die you are ALL JUST GUESSING! So take it when you think it’s best for you. It’s still a guess and unless you are an outlier.....it is all a wash.
Do me a favor. Seriously, go walk through a cemetery. I did that just last weekend putting flowers on my dads grave. What a wake up call! BTW he died in 1991 unexpectedly of a heart attack at 58. I am still heartbroken 27 years later. As I walked around I was astounded at the ages people died. So many men in their 60’s and 70’s. I wondered how many bragged...we have good genetics in our family and longevity. We are waiting.......
Take it whenever you want, it’s just a guess, enjoy it, enjoy your decision, enjoy your life, you are just splitting hairs.
Many people have tried. Somebody may have even shared a worksheet.I've seen many calculations here that make my head hurt as well.
I'm just curious if anyone has thrown in the often overlooked variable that SS payments are only taxed at 85% (during the 8-year delay window) versus IRA withdrawals being taxed at 100% during the same period.
I'm sure it's been done but my ER laziness precludes me from any further searches.
No, I said the government knows the odds and they aren’t giving anything away. .....
The people who think the 4% SWR guideline makes sense can actually enjoy more money early in retirement by deferring their SS start date.
That's the answer to the (IMHO correct) question:
What are the maximum dollars per month that can be "safely" spent (for some quantifiable value of "safe") over a period of indefinite length when exercising SS at age 62 and at 70?
Once we have those two amounts we know enough to make a choice between the two SS exercise dates.
For you. Not me.
I prefer to look at the 90% age where 90% have died and 10% survive past that and then add a couple more years for good measure.
For most people it is not for them... Most of us here are wealthier than the average joe that need S.S. at age 62 just to pay the Bills... So we are talking about the 2% of Men that delay S.S. to age 70, as this chart indicates....
https://www.fool.com/retirement/gen...the-average-american-start-collecting-so.aspx
But this is a Forum, that has a lot of folks that are astute about their finances, can afford to delay. I have always been glad that I am not in the Majority. (Retired 18 years now and wintering in Australia)
When to start early retirement does not depend entirely on one’s financial situation. But also important is one’s assessment of his chances of being means tested for a partial or total reduction in SS benefits.
Further, if a wealthy retiree believes that his income will cause him to be means tested, there is also the matter of when such means testing will begin.
This is an interesting thought. Is there any chart out there that shows at what ages people die?
e.g.
60-65 4%
66-70 8%
71-75 11%
76-80 22%
81-85 25%
86+
This is one of my top 3 reasons on why I took SS at 62.
As a 'wealthy retiree', "take the money and run" is my mantra on this issue.
(Yes, I understand the current means testing of taxation on SS; no need to go there)
This is an interesting thought. Is there any chart out there that shows at what ages people die?
e.g.
60-65 4%
66-70 8%
71-75 11%
76-80 22%
81-85 25%
86+
Behavioral Economics tells us that it is far easier to spend "their" money, rather than "my" money.
I have to believe that influences some (many?) to claim social security early and thus avoid having to spend from their retirement portfolio.
Behavioral Economics tells us that it is far easier to spend "their" money, rather than "my" money.
I have to believe that influences some (many?) to claim social security early and thus avoid having to spend from their retirement portfolio.
But..... but..... but..... I thought money was fungible?
But..... but..... but..... I thought money was fungible?
I'm sure that's part of it.Behavioral Economics tells us that it is far easier to spend "their" money, rather than "my" money.
I have to believe that influences some (many?) to claim social security early and thus avoid having to spend from their retirement portfolio.
That was my point.
Yes.When to start early retirement does not depend entirely on one’s financial situation. Of course one’s assessment of his personal longevity is important. But also important is one’s assessment of his chances of being means tested for a partial or total reduction in SS benefits.
Further, if a wealthy retiree believes that his income will cause him to be means tested, there is also the matter of when such means testing will begin. Because the SS cash flow shortfall is now ten years old and accelerating - and the SS cash flow shortfall is already increasing the federal debt held by the public - some may believe that means testing will start before 2034.