SS benefits and spending

[Mr._johngalt]

In 1993 when I jumped ship, I gave little or no thought to how
SS (13 years away then) would impact ER. Too far off to bother
considering. Now, only 16 months away, it makes all the difference.
I've made it all this way with no SS and no IRA withdrawals.
In 1993 that would have seemed preposterous. The point is
that for us, SS kicking in will make a huge difference. It will
amount to most of our income (by far) in retirement, and we have lived (well) for many years without any at all. Impossible to overstate the importance to us.

JG

 

[Michael]

I hope it is still there in 20 years when I get there.

 

[Mr._johngalt]

Me too!

 

[Ol_Rancher]

me three ...

My Texas teacher retirement has no cola, ccurrently at 27,000/year ... but it does offer medical coverage (about 240/month with prescription coverage) for all retirees including early ones like me.

I am counting on the estimated $1022/month at age 62 (now am 59 retired at 53) to offset inflation. The only way pension might increase is my act of Texas Legislature (check) .

The pension and comming SS benefits represent the bond portion of my portfolio. I will begin moving as much of my qualified (tax deferred) portfolio into taxable accounts each year while the tax rates are this low.

I own and lease a small condo in Ausitn that nets about $5000/yr positive cash flow and a 25 acre ridge top small ranch that has an agricultural exemption ($2/acre taxes). Could divide it and sell a beautiful building site if I had too.

Will buy equity funds funds that are income oriented in the American family of funds. I get a break point that sets my front end load at 2% rather than the 5 3/4 percent.

I anticipate a decades long period of moderate to high inflation rate, and feel that American's Income Fund of America (AMECX), Fundamental Investors (ANCFX), Investment Company of America (AIVSX) and Capital World Growth and Investment (CWGIX) offer a good defensive stance to augment the rest of my portfolio. All are rated NO ALARM funds with lowest risk rating on the Fundalarm site. All pay decent quarterly dividends.

The funds I already own in Taxable accounts are Washington Mutual Investors (AWSHX) and EuroPac (AEPGX) as core holdings.

The American funds are noted for their low fees once you get past the front load and conservative comittee style of management.

I feel this should set me for life. Currently the pension and condo rental provide enough cash flow that I need not touch the rest of the portfolio at this time.

I figure I am set for life. Net worth about 1.4 M . The real estate within an hour of Austin and San Antonio might tripple in a 5 years as baby boomers head for the hills, but would not really want to sell paradise.

Comments ?

 

[Mr._johngalt]

me three ...

  My Texas teacher retirement has no cola, ccurrently at 27,000/year ...    but it does offer medical coverage (about 240/month with prescription coverage) for all retirees including early ones like me.

  I am counting on the estimated $1022/month at age 62 (now am 59 retired at 53) to offset inflation. The only way pension might increase is my act of Texas Legislature (check) .

  The pension and comming SS benefits represent the bond portion of my portfolio. I will begin moving as much of my qualified (tax deferred) portfolio into taxable accounts each year while the tax rates are this low.

I own and lease a small condo in Ausitn that nets about $5000/yr positive cash flow and a 25 acre ridge top small ranch that has an agricultural exemption ($2/acre taxes). Could divide it and sell a beautiful building site if I had too.

  Will buy equity funds funds that are income oriented in the American family of funds. I get a break point that sets my front end load at 2% rather than the 5 3/4 percent.

I anticipate a decades long period of moderate to high inflation rate, and feel that American's Income Fund of America (AMECX), Fundamental Investors (ANCFX), Investment Company of America (AIVSX) and Capital World Growth and Investment (CWGIX) offer a good defensive stance to augment the rest of my portfolio. All are rated NO ALARM funds with lowest risk rating on the Fundalarm site. All pay decent quarterly dividends.

  The funds I already own in Taxable accounts are Washington Mutual Investors (AWSHX) and EuroPac (AEPGX) as core holdings.

  The American funds are noted for their low fees once you get past the front load and conservative comittee style of management.

I feel this should set me for life. Currently the pension and condo rental provide enough cash flow that I need not touch the rest of the portfolio at this time.

I figure I am set for life. Net worth about 1.4 M . The real estate within an hour of Austin and San Antonio might tripple in a 5 years as baby boomers head for the hills, but would not really want to sell paradise.

Comments ?

I'm jealous.

JG

 

[laurence]

7 figure net worth, pension, health care coverage, good backup plans, if you weren't retired, we'd collectively shake some sense into you! You have my dream scenario, Ol_Rancher!

 

[cute fuzzy bunny]

Ol Rancher...why do you pay a 2% front load for funds that have no-load competition that performs as well or better?

 

[kenepp1]

You must have worked 40 quarters outside teaching to be able to get SS. My wife is a retired teacher and she cannot draw it because she only worked for the Texas state gov't.

 

[Michael]

The worst part of not being eligible for Social Security is that you are also not eligible for Medicare. There are teachers who have plenty of teacher pension to retire, but don't because they fear rising medical costs.

 

[Ginger]

My husband has worked for a government agency his whole career and will not be entitled to Social Security, but will be entitled to Medicare at 65.

 

[Michael]

Apparently some people are eligible. Thank you for correcting my false impression Ginger.

 

[BUM]

Ol Ranchers with Ol Habits die hard. I too owned an American Fund and paid plenty of fees. But I really loved the darn thing. Made good money for a long time. I don't think O_R is destined for VG anytime soon. He having too much fun enjoying his life plan. Which looks way better than most. Declare victory Ol Rancher!

 

[Ginger]

Michael, my husband, a government worker, had money taken out of his salary for Medicare contributions. Also, he has a "medical grant" -- money that is being taken out of his salary to offset future retirement medical plan costs.

 

[Michael]

Ok, that's the difference. The school teacher I talked to never had Medicare or Social Security taken out of his pay check. Retirees have to pay their own health insurance through a group plan sponsored by the school teacher's union. Its very expensive, and going up fast.

 

[Michael]

I also talked to a pastor who told me that pastors had the right to opt out of Social Security. One of his freinds did that, not realizing that he was also opting out of Medicare. He found out that private health care policies are very expensive for those over 65, especially if they have any health problems.

 

[Zipper]

Off topic, but do you guys ever remember the "Pastor Fuzz" joke.

I'm sure you do JG.

 

[Craig]

This is a subject of great interest to me now ... age 53, and wife is 54. We're doing pretty well on our retirement plans, BUT, if SS isn't there, and we have to depend entirely upon our savings ... we won't be living high on the hog, if we can get by at all.

On one hand, I'd like to see how reform shakes out ... on the other hand, not sure I want to know, based upon recent reports. While I believe in the private account concept, the timing is too short under recent proposals. Will really hurt those of us within 10 to 15 years of SS, it appears.

 

[sgeeeee]

I also talked to a pastor who told me that pastors had the right to opt out of Social Security.  One of his freinds did that, not realizing that he was also opting out of Medicare.  He found out that private health care policies are very expensive for those over 65, especially if they have any health problems.

Surely god will take care of him.

 

[Mr._johngalt]

Surely god will take care of him.

Hi SG, I think sarcasm is my dept.

JG

 

[Mr._johngalt]

This is a subject of great interest to me now ... age 53, and wife is 54.  We're doing pretty well on our retirement plans, BUT, if SS isn't there, and we have to depend entirely upon our savings ... we won't be living high on the hog, if we can get by at all.

On one hand, I'd like to see how reform shakes out ... on the other hand, not sure I want to know, based upon recent reports.  While I believe in the private account concept, the timing is too short under recent proposals.  Will really hurt those of us within 10 to 15 years of SS, it appears.

Hello Charles! We are 60 and 56 and could cut back pretty
severely if necessary. However, SS will be necessary to support
our retirement. I am counting on something pretty close to what
we are shown as age 62 benefits. I could lose 100% of my bond/CD
portfolio and still make it work. With no SS, our ER would be dead in the
water.

JG

 

[Eagle43]

Charles, JG, Ol Rancher, et all. Turned 62 today! Now where is that social security lockbox? I want it now.

Actually, the social security administrator told me it would take 15 years to catch up if I waited until 65. There is simply no debate about taking it at 62 with those kind of numbers. And I can make 11k (or is it 12?) a year if I want to do some part-time stuff. I don't. Working 43 years must be enough.

First check in July. I can wait.

 

[unclemick]

Basically LBYM: 1993 - 2005, age 49 to 62 did not 'overspend' a common sense take out, just in case.

Early SS availible end of this year. Will spend it when I get it.

Bird in hand and all that rot.

 

[TromboneAl]

Gee, thanks for telling me how important those SS checks will turn out to be.  Now I have to worry more about what the politicians are going to do.

I'll sure take SS as soon as possible -- it's a no-brainer for me.  Here's an article that favors waiting:

When to Take SS

 

[Mr._johngalt]

Charles, JG, Ol Rancher, et all.  Turned 62 today!  Now where is that social security lockbox? I want it now.

Actually, the social security administrator told me it would take 15 years to catch up if I waited until 65.  There is simply no debate about taking it at 62 with those kind of numbers.  And I can make 11k (or is it 12?) a year if I want to do some part-time stuff. I don't. Working 43 years must be enough.

First check in July.  I can wait.

I don't understand. If you are 62, why do you have to wait until July for your first check? I assume that check will catch you up, but still..........

BTW, Happy Birthday!

JG

 

[Mr._johngalt]

Gee, thanks for telling me how important those SS checks will turn out to be.  Now I have to worry more about what the politicians are going to do.

I'll sure take SS as soon as possible -- it's a no-brainer for me.  Here's an article that favors waiting:

When to Take SS

No-brainer here also. No use worrying about the politicians. Just plan on
the worst (from them). That's what I do and they seldom prove
me wrong

JG