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Social Security Draw

Old 02-28-2019, 03:03 PM
  #21  
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Originally Posted by Bob's Cay View Post
I am 65 and i am retiring as of tomorrow!!!!!

I am not a SSI expert nor an attorney but this is what I learned.

My decision was based on Medicare eligibility. I turned 65 last November and my wife turns 65 in March. So we are both now eligible for Medicare. Our insurance coevrage is getting better and even with good supplements the cost is considerably less that I was paying on employee plan.

My full retirement age (FRA) is 66 based on the year of birth. Yours maybe different. FRA is important because that's when you can claim full benefit. You can start at 62 but you are penalized about 7.5% a year for every year before FRA. If you draw SSI before FRA and continue to work you are further penalized with a reduction in SSI benefit. Believe it is $1 for every $2 income or something like that. After FRA, there is no penalty if you have further income.

In my case my FRA is 66. If I start SSI benefit in May (at age 65.5), my benefit will be reduced by 3.75%

FYI - the SSI website is actually pretty good. Set up a My Social Security account and you can get various estimates to run scenarios. In fact, the sign up can probably be done online with a follow up phone call. Ever contact I have had with a SSI emploeye or help line has been very positive. Not what I expected!
Congrats! Welcome to the club.
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Old 02-28-2019, 04:15 PM
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Retired at 63, took SS at 64 to avoid any loss of benefits due to income during that first year. I think the financial advisers will say that if you retire early, it's better to take SS early than to draw that amount from your savings and wait.

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Old 02-28-2019, 04:19 PM
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I think a big thing that has to be factored into the decision is how much you really need to spend in those early years of retirement to really enjoy life. If you're always going to be limited by your SS income, then I might make sense to defer it and make a few more $$ without being penalized 2:1.
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Old 02-28-2019, 04:20 PM
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By "the first year" do you mean the first year being 64 y.o? Or for age 65 year.?
it should probably be self explanatory butI want to have a good understanding of this situation.

Originally Posted by Buoy Scout View Post
Retired at 63, took SS at 64 to avoid any loss of benefits due to income during that first year. I think the financial advisers will say that if you retire early, it's better to take SS early than to draw that amount from your savings and wait.
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Old 02-28-2019, 04:25 PM
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everyone's case is different. i took mine at 62 for various reasons. i'll be 70 in July and in pretty good health(so far). i plan on living long enough to get all my money back and some of yours.
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Old 02-28-2019, 04:41 PM
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I went at 62. Took a $200 per month hit by not waiting until age 66, but I have a pension through the Operating Engieers after 40 years. I was gonna hold off collecting SS, but with all of the BS about it, I figured, I've been working since I've been 15 on the books. Except for 4 months after my motorcycle accident, I was only out of work for 1 day so I wanted my money.

Last edited by SeaBoss21; 03-01-2019 at 12:31 PM.
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Old 02-28-2019, 04:44 PM
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Originally Posted by mz06907 View Post
I do not think we can all count on getting SS income. I believe it will be means tested before I get to receive it. I do not think people should plan their lives assuming its there because technically it is not there at all.
how?
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Old 02-28-2019, 05:22 PM
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Originally Posted by STEELA View Post


how?
Because it's a giant freaking Ponzi scheme ran by our inept government who is well known for their ability to manage money.

Right now I'm paying for current SS recipients. At 32, and with the current deficit...there's 0% chance I'll ever see a dime when it's my turn to cash in on the Ponzi. Everyone is too afraid to mess with entitlements, but still some point we'll have no choice.
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Old 02-28-2019, 05:30 PM
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Originally Posted by NCSUboater View Post
Because it's a giant freaking Ponzi scheme ran by our inept government who is well known for their ability to manage money.

Right now I'm paying for current SS recipients. At 32, and with the current deficit...there's 0% chance I'll ever see a dime when it's my turn to cash in on the Ponzi. Everyone is too afraid to mess with entitlements, but still some point we'll have no choice.
well. Potential civil war issue I say. Everyone just refuse to pay taxes
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Old 02-28-2019, 05:34 PM
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Originally Posted by STEELA View Post


well. Potential civil war issue I say. Everyone just refuse to pay taxes
I don't disagree. I try not to pay attention to how much is taken out of my paycheck for it.

With the boomers coming out of the workforce, it's about to get exponentially worse.
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Old 02-28-2019, 05:35 PM
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Originally Posted by NCSUboater View Post
I don't disagree. I try not to pay attention to how much is taken out of my paycheck for it.

With the boomers coming out of the workforce, it's about to get exponentially worse.
it is in fact a contract no?
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Old 02-28-2019, 05:37 PM
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Originally Posted by STEELA View Post


it is in fact a contract no?
You mean paying SS? I don't know the ins and outs, all's I know is if you go into seminary you can opt out by being a conscientious objector.

Not worth it...you'll be much poorer.

I don't think there's any guarantee that it'll be there when you are eligible to draw. There can't be. The system is insolvent.
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Old 02-28-2019, 05:53 PM
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The one advantage to taking it early is you have that money, particularly if you save it and your family will get it when you die. Your SS dies with you. I took mine at 64 and banked it for my "new boat fund". Now I have more money than I would spend on a boat.
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Old 02-28-2019, 06:08 PM
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Retired at 60, taking SS at 62.
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Old 02-28-2019, 06:39 PM
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What gets into my craw is that it's double taxation. Pay SS taxes all your life and then they tax it again when you start taking the payments. But, I guess Uncle Sugar needs the money more than we do.
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Old 02-28-2019, 06:56 PM
  #37  
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Cool Me retirement and social security

I retired at 53 in 2009. Lived on pension for first 2 years. You will find that you don't need as much money when you are retired. Wow, that was easy. I got a part time job in 2011. This gave me some extra spending money. I felt rich. Started to receive my social security in january 2019. Now I am not sure if I want the part time job....lol. Do not wait if you are eligible. I say that with the caveat that I am receiving partial health insurance benefit from my last place of employment. Life is short. You never know when your day will come. Enjoy it while you are able.
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Old 02-28-2019, 06:57 PM
  #38  
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Originally Posted by round2it View Post
By "the first year" do you mean the first year being 64 y.o? Or for age 65 year.?
it should probably be self explanatory butI want to have a good understanding of this situation.
I retired in March at 63. I had earned enough in those 2-1/2 months prior to quitting work that I'd not have been able to keep any of my SS benefits that entire year if I had started taking them at that point. (You lose 1 dollar for every 2 you earn if not at FRA). So I waited until the following calendar year to begin.
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Old 02-28-2019, 07:00 PM
  #39  
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Originally Posted by toemandooug View Post
So, just curious to hear thoughts (plans /intentions) and experiences regarding when to begin drawing Social Security.

Personally, I've got mixed feelings at this point (57 yrs). I have a good job, no pension, no wife, reasonable 401k, some rental property, and a summer cottage.

The house is not paid for, neither are the rental properties. I used to think I'd begin to draw as early as I could, but lately, I've been leaning towards delaying it till one or more of the mortgages are paid.....It's alot more complex than just the mortgages, and I'm not looking for advice on my situation, just what is your plan or experience.......

Will tell you what I tell my clients, they are always asking me , and while their are plenty of arguments both ways I will give you mine since you asked (you and I are right at same age too if that helps and these are my plans )

FIRST thing to look at is YOUR overall health (yep NOBODY knows WHEN we are gonna die but we are talking odds )

Second is look at family history, if parents & grandparents live into their 80’s and beyond then good chance you will too

Third is what type of retirement funds do you have. If you have a robust 401k/IRA make sure you can live off of it for a LONG TIME. IF you have a defined pensions plan like state or federal Gov retirement benefits this makes a HUGE difference

4th-how long do you honestly expect to keep working. I see more and more clients working into mid to late 60’s and beyond . Most are “top of food chain” at their place of employment and can walk at anytime so no pressure there

IF you are going to keep working past 62 I would NOT EVEN CONSIDER touching SS benefits

Every year you put it off SS goes up approx 8%, HUGE difference between 62 and 66 when the day comes you are NOT working. Let’s be honest a few hundred bucks a month can be HUGE if you put it off


Right now I plan on not touching mine until 70 (56 1/2 now) as long as health (which is fine) holds out. My thought on this is IF I die my wife will have a very good SS check for just mine . I do not plan on touching any IRA’s until RMD’s hit mainly because I plan on working that long(own 2 small businesses and really enjoy what I do )

My situation is we have virtually no debt , we will upgrade truck/cars and maybe even boat but no mortgage as of next couple months however health insurance is our biggest expense and does concern me as wife and I get older . My wife is NOT high maintenance and neither am I BUT we enjoy doing what we want without concern and would like to live in retirement same way.

More than likely, again as long as health holds out, I will work well beyond 70’s old but will scale back


That is my thoughts and everyone has their own and I understand but just giving you some things I look at
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Old 02-28-2019, 07:38 PM
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I'll probably take mine at 66 full retirement or even later at 70. Still running my business at 63 & like the money coming and hate to give it up even though the business can be a pain in the ass sometimes. Have enough assets to quit right now & no debt at all I guess I'm just greedy & like putting money away for now. You can never have enough. If I kick the bucket & don't get to spend it, it really won't bother me cause when you're dead you don't know anything anyway. It's not like you're going to feel sorry that you didn't have a good time with it.
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