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(The Motley Fool)   Reason 4: You might not live to see 63 anyhow   (fool.com) divider line
    More: Interesting, Retirement, Social Security benefits, Stock market, Termination of employment, good reasons, Pension, Ageing, right decision  
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1643 clicks; posted to Business » on 09 Jul 2020 at 2:24 AM (4 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



34 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2020-07-08 11:42:23 PM  
Send me a postcard, drop me a line
Stating point of view
Indicate precisely what you mean to say
Yours sincerely, wasting away
 
2020-07-08 11:43:24 PM  
I just passed 65, punk

/Deal with it
 
2020-07-09 12:49:01 AM  
I'm going to be 57 this year.

I am ABSOLUTELY going to start to collect SS when I turn 62.


/ Your retirement plans will probably differ. Please note that ababyatemydingo Investments, Ltd is not an actual expert in investments or retirement planning. Seek professional advice for your retirement needs.
 
2020-07-09 1:44:21 AM  

MaudlinMutantMollusk: I just passed 65, punk

/Deal with it


I'm 68 and sucking that government teat dry.
//I earned every gorram penny too
///slashies
 
2020-07-09 2:54:46 AM  
Fark user imageView Full Size
 
2020-07-09 3:33:05 AM  
I'm in marginal health, on a good day.  My father started collecting at 62.  Even at diminished benefits, he collected at least as much as my mother did.  My mother held off til 70, and was dead by 73.  Both died before 73.

Damn straight, I'm punching that ticket at 62.  Hope I live long enough to get even one check.
 
2020-07-09 4:35:44 AM  
If you start collecting early, there is a penalty in the amount you will receive compared to waiting for full retirement age. You would have the benefit of having the early payments in the bank, but the reduced amount would apply for all future payments. It's easy to calculate how long you would need to live for the crossover to occur in maximizing your total payments if you wait.

I waited to start collecting, so I'm betting on being around long enough for that to be the better choice. However, if I see I'm about to be hit by a bus, my last thought is not going to be, "Oh, no. I failed to maximize my lifetime Social Security benefits."
 
2020-07-09 6:29:36 AM  
You lucky bastards. Here in Australia they keep raising the age at which a person can claim.

At the moment I have to wait until I'm 67. Of course given I'm currently 52 there's a good chance they'll raise that age further before I get close, if not get rid of a retirement payment entirely.
 
2020-07-09 6:43:06 AM  

NotCodger: If you start collecting early, there is a penalty in the amount you will receive compared to waiting for full retirement age. You would have the benefit of having the early payments in the bank, but the reduced amount would apply for all future payments. It's easy to calculate how long you would need to live for the crossover to occur in maximizing your total payments if you wait.

I waited to start collecting, so I'm betting on being around long enough for that to be the better choice. However, if I see I'm about to be hit by a bus, my last thought is not going to be, "Oh, no. I failed to maximize my lifetime Social Security benefits."


If you are a boomer under 65, and your spouse didn't earn the maximum SS benefit, both of you should file for SS early, then the top earner immediately suspends payments at the same meeting.  You get more money than if you both wait until 65 or 70.
GenX or younger?  Sorry, McConnell closed this loophole, and wants you to DIAF.
 
2020-07-09 7:03:15 AM  
Second wave ???
Odds are the first wave is going to infect 90%+ of all Americans and the ones who don't die will be left holding the debt bag and forced to work till they drop dead in their middle management job.(if they're lucky their employed at all)
The second wave will be just a mercy killing for the survivors of the first round.
 
2020-07-09 7:30:13 AM  
If you think you'll live into your 80's, try to wait until 70 to take benefits.  The monthly payments go up substantially.  Good luck with that in this environment, though.
 
2020-07-09 8:01:35 AM  
Odds are I won't live to see tomorrow.
 
2020-07-09 8:45:20 AM  
I had been planning to retire at 64, but this pandemic has got me thinking that I'll go for as early as possible.

I probably won't have the choice.  I've seen my company "early retire" anyone who gets to about 62.
 
2020-07-09 9:09:19 AM  
I do think that taking it before your "full retirement age" is something to consider now, because...

1) The pandemic is now out of control and there will be more unemployment which means fewer paying in, which means the day when they have to reduce benefits is closer.
a) you also might die, or be so damaged that you can't enjoy anything.
b) It is just getting started. Just about 1 percent have been infected. Wait until it is 90%.

2) If there is a chance that Trump could win, even through cheating, it would mean 4 more years to ruin SS.
a) By reducing payroll taxes until SS is not self supporting
b) by "privatizing SS" for max grifting by the 1%
c) by not fixing SS (for example by raising the earned income limit) and then being "forced" to destroy it.

3) Quality of life in the future is apparently going to be less, for various reasons but mostly Trump damage to health care and support systems and limiting international trade and having nobody to pick the crops.
a) Not going to be able to take that European vacation for years now anyway.
b) Goods and services are going to be more expensive and of more limited availability.
c) Might as well get your money now.
 
2020-07-09 9:12:39 AM  
Min/maxing the benefits seems really complicated, but for most calculators I've tried, there isn't actually a huge gap in the total benefits with likely longevity. The big differences come about when there's either an unusually early or late death, and I can't worry too much about predicting that.

So I'm tentatively planning to wait until there's some need for the SS money. In the meantime, I've had a library book requested for covid-19 months now that I'm hoping will give me some clarity on our best plan.
 
2020-07-09 9:42:06 AM  

KarmicDisaster: I do think that taking it before your "full retirement age" is something to consider now, because...

1) The pandemic is now out of control and there will be more unemployment which means fewer paying in, which means the day when they have to reduce benefits is closer.
a) you also might die, or be so damaged that you can't enjoy anything.
b) It is just getting started. Just about 1 percent have been infected. Wait until it is 90%.

2) If there is a chance that Trump could win, even through cheating, it would mean 4 more years to ruin SS.
a) By reducing payroll taxes until SS is not self supporting
b) by "privatizing SS" for max grifting by the 1%
c) by not fixing SS (for example by raising the earned income limit) and then being "forced" to destroy it.

3) Quality of life in the future is apparently going to be less, for various reasons but mostly Trump damage to health care and support systems and limiting international trade and having nobody to pick the crops.
a) Not going to be able to take that European vacation for years now anyway.
b) Goods and services are going to be more expensive and of more limited availability.
c) Might as well get your money now.


Fark user imageView Full Size
 
2020-07-09 10:02:36 AM  
I compared collecting at 62 and waiting until I was 70 for maximum benefit.
I ended with more money total collecting at 62 until I reached about 78 , then it was a wash, then I got a little more each year.  But it was not that much really.
 
2020-07-09 10:42:20 AM  
I started collecting at 62.  My wife was in graduate school and I had exhausted my investment account.  I was reluctant to tap my IRA early.  Six years later, she has a much better job now and I'm on Medicare Plus, which is about $500/month less than private health insurance.  Her new job's benefits are so good I dropped dental and optical coverage with Medicare and switched to her insurance.  Same provider, different pocket.

I might add my hernia operation, which my private insurance wouldn't cover, was covered by Medicare.  Another $8 grand saved.
 
2020-07-09 10:48:21 AM  
My brother looked at his bank balance and his medical records and decided to tap out. Sold everything and moved back to Thailand. At 52.
 
2020-07-09 10:52:43 AM  

Northern: NotCodger: If you start collecting early, there is a penalty in the amount you will receive compared to waiting for full retirement age. You would have the benefit of having the early payments in the bank, but the reduced amount would apply for all future payments. It's easy to calculate how long you would need to live for the crossover to occur in maximizing your total payments if you wait.

I waited to start collecting, so I'm betting on being around long enough for that to be the better choice. However, if I see I'm about to be hit by a bus, my last thought is not going to be, "Oh, no. I failed to maximize my lifetime Social Security benefits."

If you are a boomer under 65, and your spouse didn't earn the maximum SS benefit, both of you should file for SS early, then the top earner immediately suspends payments at the same meeting.  You get more money than if you both wait until 65 or 70.
GenX or younger?  Sorry, McConnell closed this loophole, and wants you to DIAF.


That only applies if you were at least 62 in 2015.
 
2020-07-09 11:21:30 AM  

SafetyThird: My brother looked at his bank balance and his medical records and decided to tap out. Sold everything and moved back to Thailand. At 52.


At least you'll understand why he's sobbing when he calls you and yells, "IT'S A BOY!"
 
2020-07-09 11:58:43 AM  
As your attorney, my advice to you is
Circle Jerks - Live Fast Die Young (Lyrics)
Youtube 2GyMwp4duws

NSFW
 
2020-07-09 12:11:47 PM  
Uhm, for those 'retiring' at 62 - what are you doing for healthcare until Medicare kicks-in at 65?

Vets can tap the VA and there might be a few union jobs that cover health benefits until 65, but buying private health insurance at ages 62-64 is really expensive. You can't still be working because your SS retirement benefit will get demolished.
 
2020-07-09 12:36:14 PM  
Yes, yes, yes, take it at 62.  Unless you have an expansive family history of living long lives, it is NOT worth it to wait.  The benefits don't catch up until you hit about age 76.  So unless you're planning on living a super long life (and you can't know!) take it early.

If you have a super high paying job you enjoy at age 62, you can skip it.

In most other cases, take it.
 
2020-07-09 12:55:54 PM  
I know people who claimed SS early because they were sure they were going to die before they got to be 65.  All I can say is "Be frugal and save." I also know several people who outlived their retirement.
 
2020-07-09 1:00:25 PM  

madgonad: Uhm, for those 'retiring' at 62 - what are you doing for healthcare until Medicare kicks-in at 65?

Vets can tap the VA and there might be a few union jobs that cover health benefits until 65, but buying private health insurance at ages 62-64 is really expensive. You can't still be working because your SS retirement benefit will get demolished.


I retired at 54 and the wife retired at 57. We've been on the Maryland Health Exchange and as long as I keep the reportable income below $64k we get a hell of a subsidy (around $1500/month).
 
2020-07-09 1:38:40 PM  

madgonad: Uhm, for those 'retiring' at 62 - what are you doing for healthcare until Medicare kicks-in at 65?

Vets can tap the VA and there might be a few union jobs that cover health benefits until 65, but buying private health insurance at ages 62-64 is really expensive. You can't still be working because your SS retirement benefit will get demolished.


Everyone I know that took SS at 62 continued to work or had a spouse that still worked.
 
2020-07-09 2:20:50 PM  

TedCruz'sCrazyDad: Northern: NotCodger: If you start collecting early, there is a penalty in the amount you will receive compared to waiting for full retirement age. You would have the benefit of having the early payments in the bank, but the reduced amount would apply for all future payments. It's easy to calculate how long you would need to live for the crossover to occur in maximizing your total payments if you wait.

I waited to start collecting, so I'm betting on being around long enough for that to be the better choice. However, if I see I'm about to be hit by a bus, my last thought is not going to be, "Oh, no. I failed to maximize my lifetime Social Security benefits."

If you are a boomer under 65, and your spouse didn't earn the maximum SS benefit, both of you should file for SS early, then the top earner immediately suspends payments at the same meeting.  You get more money than if you both wait until 65 or 70.
GenX or younger?  Sorry, McConnell closed this loophole, and wants you to DIAF.

That only applies if you were at least 62 in 2015.


McConnell became senate speaker at the beginning of January 2015.  It's part of his legacy.  If he could privatize SS or kill it he would do so.
 
2020-07-09 2:58:15 PM  

ababyatemydingo: I'm going to be 57 this year.

I am ABSOLUTELY going to start to collect SS when I turn 62.


/ Your retirement plans will probably differ. Please note that ababyatemydingo Investments, Ltd is not an actual expert in investments or retirement planning. Seek professional advice for your retirement needs.


53 here.  Nine years and counting until I pull the plug and retire.  Hopefully my main retirement fund and SS will be enough.

Just remember, if you want until you're 67 to get the maximum amount from SS, you will never, ever, live long enough to make up what you lost in those five years.
 
2020-07-09 3:50:22 PM  

Great_Milenko: ababyatemydingo: I'm going to be 57 this year.

I am ABSOLUTELY going to start to collect SS when I turn 62.


/ Your retirement plans will probably differ. Please note that ababyatemydingo Investments, Ltd is not an actual expert in investments or retirement planning. Seek professional advice for your retirement needs.

53 here.  Nine years and counting until I pull the plug and retire.  Hopefully my main retirement fund and SS will be enough.

Just remember, if you want until you're 67 to get the maximum amount from SS, you will never, ever, live long enough to make up what you lost in those five years.


That is not true, especially for women.
 
2020-07-09 5:20:06 PM  

maxis_mydog: I retired at 54 and the wife retired at 57. We've been on the Maryland Health Exchange and as long as I keep the reportable income below $64k we get a hell of a subsidy (around $1500/month).


Yeah, that must be nice.

TedCruz'sCrazyDad: Everyone I know that took SS at 62 continued to work or had a spouse that still worked.


Getting benefits from the spouse that works makes sense, but then you aren't really 'retired' because your spouse is still working full time. I guess if you are retiring from 'career #1' and then doing something else it might work, but actually retiring generally means a pretty significant change in life. However if you are still working you shouldn't claim retirement. Your salary kills the benefits you would receive. If you make over $50k you receive nothing from SS because they reduce a dollar for every $2 earned over $17k
 
2020-07-09 11:05:50 PM  
TFA reason #1 was the stock market. If you're that close to retirement age, shouldn't your investment be in something less volitile?

If the stock market drops and instead of thinking "buying opportunity" you're thinking "this is going to affect my ability to pay my bills" then your money shouldn't be in the market.
 
2020-07-10 3:25:56 AM  

Great_Milenko: ababyatemydingo: I'm going to be 57 this year.

I am ABSOLUTELY going to start to collect SS when I turn 62.


/ Your retirement plans will probably differ. Please note that ababyatemydingo Investments, Ltd is not an actual expert in investments or retirement planning. Seek professional advice for your retirement needs.

53 here.  Nine years and counting until I pull the plug and retire.  Hopefully my main retirement fund and SS will be enough.

Just remember, if you want until you're 67 to get the maximum amount from SS, you will never, ever, live long enough to make up what you lost in those five years.


If you wait, the size of your SS benefit continues increasing until maxing out at 70.
 
2020-07-10 11:45:40 AM  

mcmnky: TFA reason #1 was the stock market. If you're that close to retirement age, shouldn't your investment be in something less volitile?

If the stock market drops and instead of thinking "buying opportunity" you're thinking "this is going to affect my ability to pay my bills" then your money shouldn't be in the market.


There is a different school of thought going around now. In retirement you shouldn't be investing money for your existing stage of life. Instead you should be investing as a dynasty. The market goes up and down. You should budget your retirement spending to be less than earnings/growth. So plan on withdrawing 2-3% of the balance every year. Doing this will allow your assets to continue to grow throughout retirement and keep your spending reasonable.

For example. You saved $1 million in your 401k and IRA funds at retirement. You had a nice middle class job so you get $40k from Social Security each year. You take 3% out of retirement savings that year for a total of $30k. That gives you $70k to live off of. By this time you should own your home so monthly expenses should be minimal. That's plenty of money for a nice retirement. No, you won't spend two months of the year on a cruise ship in a suite, but you can generally do what you want. If your spouse has done the same you will have $140k to live on. Doing this allows your assets to remain fairly aggressively invested so that you can handle an extreme emergency and leave a giant nest egg to your children.

Just don't tell them about it.
 
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