Review my advisor’s advice

[Koolau]

Jerry1, Did you compare the 10 year performance of the no cost index fund with the very low cost index fund?

Any one fund can have a good run but will typically average out over time. For any two funds with similar holdings, the one with the lower fees wins out in the end. YMMV

 

[mebden]

I was tired when I made my post (#2) above. Another vote NO for annuities. They should only be for special circumstances.

I did not notice that you said you were already 55, I only saw the "50" in your link. My bad, and congrats because that keeps you out of the SEPP quagmire. Also I didn't read that link but I see someone else did and saw that you'll be getting a pension soon. I agree with them that this simplifies your decision even more.

I would quibble with the suggestion above to wait until 70 to claim SS. If you get hit by a bus at 68, you then got zero. Yes I've seen the 8% increase per year of delay figure, but you can do better by taking it at 62 and investing it. And then if you do get hit by that bus at 68, you have an asset you can give someone/something (can't do that with SS). And my final usual argument, if you wait those 8 years then you are using your own assets to live on during that time instead of the one the gov't is holding and you are entitled to.

I agree 100% with this FedRetired50 I've seen so many peeps die before they collected a penny from SS not even making it to 62 and to let the Gov hang that carrot in front of you about getting more if you wait is just a mirage you will come out the same no matter what age you take it at

 

[FedRetired50]

I agree 100% with this FedRetired50 I've seen so many peeps die before they collected a penny from SS not even making it to 62 and to let the Gov hang that carrot in front of you about getting more if you wait is just a mirage you will come out the same no matter what age you take it at

The break-even if you wait until 70 to collect is just about 80, for most people here. And yes the system is designed so everyone gets the same in total - if you live to your actuarial age.

 

[Dalton]

As must always be stated, the breakeven calculation only looks at the total you'll collect from SS over the various time periods, in isolation. Add in a spouse collecting SS, and all your other accounts/investments and their returns, when you'll stop working, and your spending, and your net worth balance over the remainder of your life could come to a different conclusion as to when is best to start collecting SS.

I'm single, have low spending, retired before 60. Assuming conservative (and consistent) returns, my comprehensive investment spreadsheet bottom line for all years suggests that taking at 62 will yield higher net worth with no breakeven point (e.g., my net worth will be higher by the amount I collect "early"). Granted, there is possibility of a sequence of returns issue affecting that outcome temporarily, but again, I'm using conservative returns and presume that the market will recover eventually, but that's where weighing the value to you of the guarantee of the increased SS payments (from waiting to collect SS) comes into play.