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Thread: Social Security Questions for you smart people

  1. #11
    Senior Member Teacher Terry's Avatar
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    I would definitely wait until 70. Also once you sell the jersey house you can pay off any debt.

  2. #12
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    I can sure see why it's smart to wait. But maybe it depends on how much debt, and what's paid for? So if selling the big house eliminates the debt, then she would still have to know what she would have in the bank for savings and big ticket items down the road, right?

    I still say the decision is impacted by how much there is in savings, and how much she could amass with an extra 2000 a month now, versus 2360 at 70. I guess it depends on how much she wants to earn now, and whether she wants to work til 70, doesn't it? And amount of debt and whether a paid off house is something that is preferred--lots of people like keeping a mortgage in retirement. Then the bigger ss at 70 makes more sense to me, if there is a mortgage.

  3. #13
    Senior Member Teacher Terry's Avatar
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    The only money they have if I remember correctly is SS and the house money and she wants to work until 70.

  4. #14
    Senior Member iris lilies's Avatar
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    Wait— catherine.

    Since you work and earn good money, will you get ANYTHING at this time? SS money isnt automatically given to you, there is a formula for them withholding money when you exceed a ceiling of earnings.From what you said, you would exceed that ceiling very much.

    At age 70 you get the full amount regardless how much you earn in a job.

  5. #15
    Senior Member catherine's Avatar
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    Quote Originally Posted by iris lilies View Post
    Wait— catherine.

    Since you work and earn good money, will you get ANYTHING at this time? SS mo ey isnt automatically given to you, there is a formula for them withholding money when you exceed a ceiling of earnings.From what you said, you would ex eed that ceiling very much.
    No, not when you reach full retirement age, which I have. I can earn as much as I want.

    All along I've assumed I would wait until 70 to collect, and I would retire at 70 as well. I'm trying to cut back on work a little (it's not working so far). I'm probably just going through that resentful season of the year when my friends (and some members of my family) are out boating and gardening-at-will, and doing whatever they want and I'm still working, so I'm trying to get creative with different possibilities.

    But it all comes down to:
    a) I should never have co-signed that mortgage for my MIL in 2007
    b) I should never have co-signed at least 2-3 other loans in the 2000s
    c) Taking a bite out of the reality apple, I definitely have to work until 70, and probably part time for a couple of years after that.
    d) So, basically I agree with you all in that I'm better off waiting to collect.

    Thanks for the reality check.
    One good thing is, my son wants me to put the house on the market soon.. they are almost certain they are moving from the area before school starts.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
    www.silententry.wordpress.com

  6. #16
    Senior Member bae's Avatar
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    Quote Originally Posted by iris lilies View Post
    Since this my Full Retirement Age Day, ....

    Congratulations, and many happy returns!

  7. #17
    Senior Member rosarugosa's Avatar
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    Happy Birthday & FRA IL from a fellow Taurus!
    Catherine, I agree with waiting. I like the longevity insurance aspect of SS, especially if this will be your sole source of income. I also wonder, relative to the collect early and save/invest the money strategy, how many people actually save the money. I'm sure some have the self-discipline to do so, but I'll bet more just increase their standard of living. So I think each of us has to ask honestly whether we are more likely to save or spend. I hit 62 last month, and despite my intention to wait until FRA, I can certainly feel the temptation to go for that one marshmallow now instead of two later! I could end up claiming earlier due to DH's change in work status, but I don't see any reason why I can't hold out for at least another year or two.

  8. #18
    Senior Member iris lilies's Avatar
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    Quote Originally Posted by catherine View Post
    Yes, Happy birthday! Taurus the Bull, eh? Earth sign, eh? It all fits!
    hah, yep.

    As far as your past financial transgressions, well – you’re in a not bad entirely situation right now. And that news about your New Jersey house selling is just really really good, I’d like to see you get out from under that.

    I remember how, not too long ago, you kind of wondered aloud about retiring because you really enjoyed all of your work all the time. I knew at the time that someday you will want to get out from under those obligations. That doesn’t mean that you can’t keep a contract or so for part time work, you’re in a nice position where maybe you will want to. I don’t know how that works.

  9. #19
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    Does YNAB have a function where you can model two different futures, one with taking it at 68 and saving all of it, and one taking it at 70?

    You can model in the debt repayment, how much and when that occurs, and whether you can do it solely with money from sale of NJ house.

    As far as Rosa's great point about absorbing the extra into a higher standard of living now, the way to avoid that is to open an account at an online bank like Ally that is designated only for the Social Security money, and have it auto deposited there each month, and leave it alone. You would just pretend to yourself you weren't getting it yet.

    That way, you could have saved something like 50,000 in the two years, and you can factor that into your models, one where you have that saved and one where you don't, but you are getting a higher monthly draw.

    Then see when you breakeven, how many years.

  10. #20
    Senior Member catherine's Avatar
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    Quote Originally Posted by Tybee View Post
    Does YNAB have a function where you can model two different futures, one with taking it at 68 and saving all of it, and one taking it at 70?

    You can model in the debt repayment, how much and when that occurs, and whether you can do it solely with money from sale of NJ house.

    As far as Rosa's great point about absorbing the extra into a higher standard of living now, the way to avoid that is to open an account at an online bank like Ally that is designated only for the Social Security money, and have it auto deposited there each month, and leave it alone. You would just pretend to yourself you weren't getting it yet.

    That way, you could have saved something like 50,000 in the two years, and you can factor that into your models, one where you have that saved and one where you don't, but you are getting a higher monthly draw.

    Then see when you breakeven, how many years.
    I actually did that a couple of months ago! I can't find it now, but I believe that the breakeven would be at age 78 (I would have accumulated more money by taking early and saving vs taking the full amount at 70), which is not great given I might have several more years after that.

    IL, yes, I go through waves where I know I am so lucky to be able to pick and choose projects, work load, work from home, and make good money. But then sometimes I get whiney. Overall, I'm grateful, but mad at myself for not being in a better position. As you said, though, I'm not in a bad position, really.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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