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  • Social security

    Good evening I’m sure this issue has been discussed multiple times in the past so I apologize If this is totally repetition. But have a few questions about it
    I’m 41 and hope to take my SS starting at 62 yo of age
    Has anyone noticed a big difference between taking it early and delaying it?

    as high income earners do we plateau at a certain amount ?
    is there a way to calculate how much SS we will get based on our projected pay ?

    I am doing that because nobody lives past 83 in my family And want to utilize that before I get completely disabled

    Any thoughts and comments are welcome

  • #2
    Mike Piper has an excellent book. PoF has an excellent discussion with calculator.

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    • #3
      WCI and POF have written on this.

      https://www.whitecoatinvestor.com/wh...ity-a-pro-con/
      https://www.physicianonfire.com/ssa2017/

      Short version: 83 is more or less the break even point for taking SS early versus waiting until 70, but remember that is just for you. If married the conventional wisdom is to wait until 70 up to drive up the survivor benefit for spouse. If spouse worked a full career and is taking his or her own SS, then take it when you want.

      BTW, SSA will project your payout for you at both points. Just sign up for a SSA.gov account.

      Also Mike Piper has a great little book on claiming strategies. Finally, the “Ask Larry” website has a great history of SS questions. (No, this is not me
      https://obliviousinvestor.com/social...nefits-single/
      https://maximizemysocialsecurity.com...benefit-amount

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      • #4
        Opensocialsecurity.com

        Play with the what if... Options

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        • #5
          1. Read Mike Piper's book on Social Security.
          2. Make sure you and your spouse each sign up for a ssa.gov account.
          3. Play around with different strategies using the opensocialsecurity.com website.
          4. As you are only 41, you have a few years to go before pull the trigger on any claiming strategy. You have no idea what life or health events are in front of you.
          5. Keep up with the changes that will occur.

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          • #6
            Do you really believe medical advancement in the next 40 years won’t change your life expectancy?

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            • #7
              Originally posted by VentAlarm View Post
              Do you really believe medical advancement in the next 40 years won’t change your life expectancy?
              It might but not definite esp for dementia

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              • #8
                25 years of career- still stuck on aricept and the likes. Same here -- pulling at 62.

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                • #9
                  History of my advice with Social Security withdrawal strategies:
                  1. Wait until you can determine breakeven point before deciding when to claim. Typically between 78 and 83, so decide if “you’re feeling’ lucky” about time to die.
                    • Also consider that many doctors are male and will be outlived by their non-working spouse. You’ll set the benefits for your surviving spouse when you claim.
                  2. Then Bob-the-engineer-turned-financial-planner created a scenario in our software including a variable that is rarely (if ever) considered in SS w/d scenarios: what is the impact if delaying SS will result in earlier pre-tax retirement account distributions (we calculate the optimal withdrawal strategy bg within 5 yrs till retirement)
                    • Lo and behold, the results changed. If the alternative is to substitute pre-tax dist’s for SS withdrawals, you’re generally better off with earlier SS withdrawals. Now I am not so anti-early withdrawal. I may start mine at FRA (I’m 64) even though I’d always planned for age 70. Not certain yet.
                    • Of course, you also need to consider that you’ll lose $1 from your benefit payments for every $2 you earn above $18,960 (2021) if you are under FRA .
                  Engineers are a special breed and I have respect for their capabilities. If you can tame one, it adds a new dimension to problem solving.
                  Last edited by jfoxcpacfp; 12-25-2021, 06:51 PM. Reason: Mind fart - I get SS and RMD ages mixed up. Corrected thanks to WBD!
                  Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                  • #10
                    jfoxcpacfp - exactly. the numbers really start flipping around and one of several reasons we are pulling SS at 62 and deferring pensions to later dates, VA (fed 62), Kaiser- 65; and UC probably 65 as current revised plans stand. Also with SECURE 1.0 pushing us to maximize Roth conversion opportunities with support on cash bucket instead of pensions; and then use contingency beneficiary to extend the pension to next generation and draw down the pretax funds for us if needed (shifting generational wealth over time).

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                    • #11
                      If one spouses personal FRA payments is more than half of the other (higher earning) spouses even if the other spouse files at 70 does this mean that getting that half that higher pay when one spouse dies no longer factors in?

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                      • #12
                        Originally posted by StarTrekDoc View Post
                        jfoxcpacfp - exactly. the numbers really start flipping around and one of several reasons we are pulling SS at 62 and deferring pensions to later dates, VA (fed 62), Kaiser- 65; and UC probably 65 as current revised plans stand. Also with SECURE 1.0 pushing us to maximize Roth conversion opportunities with support on cash bucket instead of pensions; and then use contingency beneficiary to extend the pension to next generation and draw down the pretax funds for us if needed (shifting generational wealth over time).
                        Does Kaiser offer pension after 20 yrs of work or 25 yrs ?

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                        • #13
                          Originally posted by StarTrekDoc View Post
                          jfoxcpacfp - exactly. the numbers really start flipping around and one of several reasons we are pulling SS at 62 and deferring pensions to later dates, VA (fed 62), Kaiser- 65; and UC probably 65 as current revised plans stand. Also with SECURE 1.0 pushing us to maximize Roth conversion opportunities with support on cash bucket instead of pensions; and then use contingency beneficiary to extend the pension to next generation and draw down the pretax funds for us if needed (shifting generational wealth over time).
                          Your multiple pensions and goals are atypical.
                          Turf Doc
                          “If one spouses personal FRA payments is more than half of the other (higher earning) spouses even if the other spouse files at 70 does this mean that getting that half that higher pay when one spouse dies no longer factors in?”

                          This is not how survivors benefits work.
                          ”Whether that survivor benefit exceeds your own Social Security payment will depend on the amount of your late spouse’s benefit and your own age and family situation. You are entitled to:
                          • 100 percent of the deceased’s benefit if you have reached your full retirement age (currently 66 for survivors, gradually rising to 67 over the next several years).
                          • 71.5 percent to 99 percent if you are between 60 — in most cases, the earliest you can draw survivor benefits — and full retirement age. (If you are disabled, the minimum age is 50.)
                          • 75 percent if you are caring for a child from the marriage who is under 16 or disabled,
                          • regardless of your own age.”
                          Basically, once you file you are stuck. Get the greater of yours or spouse. Spouse can only claim 1/2 after the other spouse has filed.
                          • The restricted filling is sunset. One files and the other claims 1/2 of spouse and claims higher benefit later at 70.
                          • The file and suspend was eliminated too.
                          One mistake is life expectancy.
                          https://www.ssa.gov/oact/STATS/table4c6.html
                          The expected remaining life is dependent on your current age as well as your current individual circumstances. Don’t use the “average for all ages”

                          The dementia issue, someone mentioned that moving into an assisted living facility EARLY locks in the lowest rates.

                          The open security site is fantastic. Once you claim, the 100% of survivor option is about the only increase possibility.That requires more than double the benefit, Most with a working spouse it takes a long time to payoff.



                          Last edited by Tim; 12-24-2021, 04:36 PM.

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                          • #14
                            gotcha, thanks Tim !

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                            • #15
                              Originally posted by Tim View Post
                              Your multiple pensions and goals are atypical.
                              Not only thing atypical of us

                              SS gets even more interesting with us with Disabled Adult Child and Child In Care Spousal Benefits -- something that was a surprise in planning that opensocialsecurity was able to map out for our planning.

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