Social Security - your thoughts?

#126
#126
The SSA and investment advisors/brokers have software to run the scenarios to help determine which age to opt in is optimal. But the variables can change.
 
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#128
#128
Thunder Good-Oil said:
You can start at 62 and receive lower monthly payments. A portion is also taxable for those tgat opt in early and continue working as a W-2 employee.

One thing that I didn’t realize until a couple of years ago. Employees that turn 65 save employers the expense of health insurance since they go on MediCare.
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I did the calculator in VBs link and by that I wouldn't get anything at 62 with what my earnings will be. Of course I could be completely misreading it and circumstances and plans may change by then.
 
#129
#129
Thunder Good-Oil said:
The SSA and investment advisors/brokers have software to run the scenarios to help determine which age to opt in is optimal. But the variables can change.
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Does anyone get a full blown physical and or dna test to assess terminal health risk?

Seems like making a SS decision without a health panel and likelihood of disease is risky.
 
#130
#130
hog88 said:
I did the calculator in VBs link and by that I wouldn't get anything at 62 with what my earnings will be. Of course I could be completely misreading it and circumstances and plans may change by then.
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I guess that helps me understand the age thing (65 raised to 66 and soon going to 67). Those are the “full retirement ages”.

“However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.”
 
#131
#131
hog88 said:
I did the calculator in VBs link and by that I wouldn't get anything at 62 with what my earnings will be. Of course I could be completely misreading it and circumstances and plans may change by then.
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I ran the link and it does not seem to matter how old I am, I get the same amount: about enough to eat at Dairy Queen twice a month. Don't know what you're knocking down, but there was no cut in the benefit even at $500K, which does not seem to comport with the rules as I read them.
 
#132
#132
McDad said:
Does anyone get a full blown physical and or dna test to assess terminal health risk?

Seems like making a SS decision without a health panel and likelihood of disease is risky.
Click to expand...

I’d rather not take any DNA tests now that the government has unfettered access to the data. People should be concerned about their 4A rights having been eroded. 1A and 2A are in the leftists’ crosshairs.
 
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#133
#133
GroverCleveland said:
I ran the link and it does not seem to matter how old I am, I get the same amount: about enough to eat at Dairy Queen twice a month. Don't know what you're knocking down, but there was no cut in the benefit even at $500K, which does not seem to comport with the rules as I read them.
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Doing it manually, deducting $1 for every $2 you make above the earnings limit brings me to a negative number if I were to take it at 62. Of course maff isn't my strong suit.
 
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#135
#135
Thunder Good-Oil said:
You can start at 62 and receive lower monthly payments. A portion is also taxable for those tgat opt in early and continue working as a W-2 employee.

One thing that I didn’t realize until a couple of years ago. Employees that turn 65 save employers the expense of health insurance since they go on MediCare.
Click to expand...

Given the rate of return, I'm taking as soon as possible....
 
#136
#136
BigOrangeMojo said:
Given the rate of return, I'm taking as soon as possible....
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I’m starting to lean that way. Accumulating the monthly payments and even if hitting an S&P comparable return the break even might be in your 80s.

Don’t sell and be taxed on capital gains. Let your beneficiaries take advantage of the stepped up basis. However I’d bet that if the Dems have enough control they will eventually eliminate the stepped up cost basis rule.
 
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#137
#137
hog88 said:
Doing it manually, deducting $1 for every $2 you make above the earnings limit brings me to a negative number if I were to take it at 62. Of course maff isn't my strong suit.
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Did you run your numbers for Medicare part B? Medicare part B premiums are based on income. I know (married filing joint) folks paying $1,118 per month. Sucks right out of your net check monthly.
 
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#140
#140
Thunder Good-Oil said:
I’m starting to lean that way. Accumulating the monthly payments and even if hitting an S&P comparable return the break even might be in your 80s.

Don’t sell and be taxed on capital gains. Let your beneficiaries take advantage of the stepped up basis. However I’d bet that if the Dems have enough control they will eventually eliminate the stepped up cost basis rule.
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There's also some impact of COLAs that you might miss out on. If I understand correctly COLAs don't get factored in until you start taking so the recent big jumps are not fully reflected in untaken future payments (if that makes sense).
 
#141
#141
McDad said:
Does anyone get a full blown physical and or dna test to assess terminal health risk?

Seems like making a SS decision without a health panel and likelihood of disease is risky.
Click to expand...

I don't know how much that would help in predicting when you die but generally yes, someone with good health at 62 is likely to live past the breakeven date. Someone in bad health is leaving money on the table. There's also more complications for married couples and some strategies for different start dates for the spouse.
 
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#142
#142
Thunder Good-Oil said:
You can start at 62 and receive lower monthly payments. A portion is also taxable for those tgat opt in early and continue working as a W-2 employee.

One thing that I didn’t realize until a couple of years ago. Employees that turn 65 save employers the expense of health insurance since they go on MediCare.
Click to expand...
MAGI is also a consideration for the premium you pay for Medicare every month and the bar isn't that high before you go up to the next tier of premiums cost.
 
#143
#143
Smokey X said:
MAGI is also a consideration for the premium you pay for Medicare every month and the bar isn't that high before you go up to the next tier of premiums cost.
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Yep - it's a crazy game of balancing income to not get screwed. Of course if you defer your tax-deferred retirement funds to avoid the Medicare bump you'll get hit harder by RMDs later.
 
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#146
#146
turbovol said:
It's true that a lot of people pay money into Social Security that they don't fully recoup before dying. It's unfortunate, but then taxes are the price we pay for having a relatively well-functioning and cohesive society (even if, owing to the gangster and Russians it's been fraying around the edges).
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Taxes are why we are an independent nation...
 
#149
#149
Assuming that I invest SS at 62 and earn 4%, breakeven ages are 84 (starting at age 67) and 86 (starting at age 70) for me...

Bump it up to 6% and it's 92 and 94
 
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#150
#150
BigOrangeMojo said:
Assuming that I invest SS at 62 and earn 4%, breakeven ages are 84 (starting at age 67) and 86 (starting at age 70) for me...

Bump it up to 6% and it's 92 and 94
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Taking payment as early as possible looks more and more like the best option for anybody that can save and invest. There’s even the possibility of cuts in benefits and COLAs a decade or two out unless rates on workers are jacked (or payrolls explode), payments to retirees are reduced, or the economy soars and the trust fund can be replenished from the general fund.
 
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