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Social Security Draw

Old 02-28-2019, 12:36 PM
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Default Social Security Draw

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.......
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Old 02-28-2019, 12:49 PM
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I am 43. The first day I am eligible I am taking it, and never working again.
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Old 02-28-2019, 12:57 PM
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I always thought I'd take it ASAP, however as that day gets ever nearer I don't see why I can't put it off and take the larger payments when the time comes, the key really is, how long you expect to live and how well you are set financially.
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Old 02-28-2019, 12:59 PM
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Pretty hard to make a suggestion when your leaving out the complicated part..

my general view view is to draw the moment you are eligible. The payback period for waiting is long and I would want to get it while it’s still there to get.

things to consider. Will you be penalized because you have earned income, is there in income stream at 62 that will be going away (putting you into a higher tax bracket in the early years) are two.
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Old 02-28-2019, 01:00 PM
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Depends on what do you think your life expectancy is, basically.
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Old 02-28-2019, 01:00 PM
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if you take it right away and continue to work, it will flat out suck! they take alot more from your paycheck. if you wait till 67 i think, then you can work and make all you want with no repercussions.
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Old 02-28-2019, 01:03 PM
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I'm going at 65, as soon as I get medicare. Health insurance is a big cost. I really don't plan to fully retire, I'll do something to make a few buck and stay active. I just want to get off of nights and the responsibility and headaches I have now. Bagging groceries was fun when I was 16, I hope it will be when I'm 65.
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Old 02-28-2019, 01:07 PM
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Depends on your health and how long you plan to/ want to work. If you continue working until full retirement age, and take SS early, you will forfeit some of the benefit due to your earnings.
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Old 02-28-2019, 01:08 PM
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I intend to take it at 62 and invest it all. Will not be working at 62. Assuming a decent return and probably not living past 80 the approach of taking it as early as possible and creating an investment return works out best by my math.
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Old 02-28-2019, 01:08 PM
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My dad retired at 65, was physically fit, then got brain cancer at 67, and was dead by 68. You never know. I'm retiring at 57.
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Old 02-28-2019, 01:19 PM
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Originally Posted by r_ventura_23 View Post
I am 43. The first day I am eligible I am taking it, and never working again.
Originally Posted by Sprockets View Post
Depends on your health and how long you plan to/ want to work. If you continue working until full retirement age, and take SS early, you will forfeit some of the benefit due to your earnings.
I'm 55. I've constructed an excel "workbook to retirement."

Listed all assets and liabilities. Listed all investments and expected returns.

Right now, my estimates allow me to live very comfortably until age 99 (made a few tweaks over the past few days where I had been calculating a need to live only to 94). The biggest "if" contingency is return on my IRA. IF I earn 8% every year for the next 7 years, I can go at 62. If I come in under that or otherwise have an income gap; I'll need to go at 67.

The two comments above are pretty typical I think, and realistic. I've said before: "The one thing I can't "earn" is time; so I'll buy as much as I can when possible."
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Old 02-28-2019, 01:27 PM
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Originally Posted by Rolandt03 View Post
if you take it right away and continue to work, it will flat out suck! they take alot more from your paycheck. if you wait till 67 i think, then you can work and make all you want with no repercussions.
Unless you simply live with the amount they allow before you start losing. Limit before paying back is $17,040 at this time. But that drops off as soon as you reach full retirement age. Then it's unlimited just like if you waited.. So you're limited for like 3 years. Right now I just started doing that. Of course, in the first year you can suspend if you want. Or you can simple work only what allowed or stop your check for a while if you go over.
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Old 02-28-2019, 01:32 PM
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I started social security at 62. The reason for this was because I thought the pay back period was too long. When the catch up period arrives, I figure the only good thing you can do with that extra money, is have your depends changed twice a day in the nursing home.
Take that money that you worked for all your life, and enjoy it the best you can. You can enjoy the money today, but tomorrow is promised to no one !
My other thought on this, is Do you think they have not figured this equation out ? Lot's of people will Never reach the equal payback date. Only my opinion !
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Old 02-28-2019, 01:36 PM
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There are many factors to consider and no right answer until too late.
Longevity / family history is one but only if at one or other extreme.
Where will your income come from? Will rentals be paid off and producing or will you be taking 401 money , or other? Iíve put it off so far (63) but may start before full age. Remember at 70 you will have to take some 401 distributions and your ss will be maxed. Advice as to your tax situation can be great help in making informed decisions, donít think you want to find that here.
All depends on no changes in laws. As they say, everyoneís situation is different.
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Old 02-28-2019, 01:39 PM
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I look at it two ways. Your expenses (for fun stuff) is going to be a lot higher for the first ~20 years than the last ~20 years. I'm thinking it would make more sense to burn though some savings and push off the SS draw until later, perhaps even to 70, to maximize it. Then you're guaranteed that amount till the end.

From what I understand, you come out even at 80 whether you took it early at 62 (and got the minimum) vs waiting till 70 and get the max. Any years beyond 80 and you're making more and it's "guaranteed" (as much as anything from the USG)
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Old 02-28-2019, 01:42 PM
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Took mine in September at 65. Thought about waiting but wanted to be “grandfathered” in (hopefully) if benefits get means tested.

GODDAMMIT ITS MY MONEY!!
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Old 02-28-2019, 01:44 PM
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I always planned to start at 62 but as I get closer (now 56), I am taking a wait and see attitude. I can retire today but canít quite talk myself into leaving my daily battles with all my team to make our products even better. I am sure I will make the leap before 59 but social security is a balance between health of the benefits as solvency approaches, penalties, and percentage increase for waiting. Canít really predict longevity but did have grandparents on both sides into 90ís. Parents now mid 80ís and going fairly strong.
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Old 02-28-2019, 01:47 PM
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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!
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Old 02-28-2019, 02:38 PM
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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.
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Old 02-28-2019, 03:00 PM
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Originally Posted by BACKTOTHESEA View Post
Pretty hard to make a suggestion when your leaving out the complicated part..

my general view view is to draw the moment you are eligible. The payback period for waiting is long and I would want to get it while itís still there to get.

things to consider. Will you be penalized because you have earned income, is there in income stream at 62 that will be going away (putting you into a higher tax bracket in the early years) are two.
Yup.

Meanings testing is coming.
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