Interesting SS numbers from FIRECalc

[haha]

OTOH, if they have a $1,000,000 portfolio, a 5% return is $50,000. Compared to that number, $17,000 is almost a roundoff.

34% is some round-off!

 

[NanoSour]

I think all these calculator trips just put some stuff of unknowable reliability between you and reality.

Do you want some fixed income? Do you want some indexed fixed income? Do you want some longevity insurance? Do you want some insurance against errors, either your own or errors in the investing algorithms that you have accepted? Do you expect SS to be continued more or less intact?

Are you mortally ill?

If you can answer yes to all the first group, and no to the last, let your benefit ride. It is probably better than anything else you could do.

Ha

I agree that when you get to 62 and have to make a decision, a completely different question arises. My concern is using FIRECalc to determine what you can safely plan to spend during ER years prior to 62.

In my case I'm contemplating ER at age 49. FIRECalc indicates I can spend 5.5K more per year if I take SS at 62 as opposed to waiting till 70 for max payment.

Now if I get to 62 and the portfolio has performed better than anticipated, or my expenses are lower than planned, I will delay SS. In the meantime, I'll plan to split the difference.

 

[Live And Learn]

<snip>If we took SS at 70 we'd have more money at age 90 but I'm not sure what we would do with it at that age except leave it to the kids or watch it dwindle to pay nursing home bills as we spend down to Medicaid asset levels.

Part of my fear is that I end up in some really horrible nursing home because I have zero dollars left. I actually want that buffer so that I have a choice of nursing homes. I worry too much.

 

[Live And Learn]

Don't forget that 'conventional wisdom' assumes people who [had to] work as long as possible, and then retired with small-ish assets. In that scenario, the extra money from delaying might be significant.

But for people who are F.I.R.E.'d the additional SS probably has little or no effect on their lifestyle.

Actually I am planning to delay my SS until age 70 because all the calculators say there is a 10 - 15% chance of my portfolio only lasting to age 85. Therefore, I am using the extra SS (at age 70 vs 62) as longevity insurance just in case I really do end up broke at 85.

 

[gerrym51]

Actually I am planning to delay my SS until age 70 because all the calculators say there is a 10 - 15% chance of my portfolio only lasting to age 85. Therefore, I am using the extra SS (at age 70 vs 62) as longevity insurance just in case I really do end up broke at 85.

try this calculator




Retirement calculator: How much should I save for retirement? - MSN Money

 

[gerrym51]

Part of my fear is that I end up in some really horrible nursing home because I have zero dollars left. I actually want that buffer so that I have a choice of nursing homes. I worry too much.

buy ltc insurance

 

[wmc1000]

A long time ago I considered LTC insurance but never pulled the trigger. Now after seeing several of my older acquaintances pass - none of them made it to a nursing home prior to their passing.

 

[wmc1000]

Another factor to consider on when to draw SS is can you afford to reduce that amount by 25% starting in 2033 if the cuts happen.

 

[SumDay]

A long time ago I considered LTC insurance but never pulled the trigger. Now after seeing several of my older acquaintances pass - none of them made it to a nursing home prior to their passing.

This is exactly why we have it. The way our luck runs, if we didn't have it, we'd both end up in a nursing home. Since we do, I hope we don't. I'd rather pay the premiums for years and never use it than actually need it. Pretzel logic, I know.