62, And What To Do? - About SSI

b23hqb

b23hqb

Well-Known Member
PREMO Member
62, And What To Do? - About SSI/Retirement Benefits

Now that I'm eligible to take SSI, the options on how to do it are staggering. My financial advisor says there are at least 600+ different strategies one can apply. Every neuron in my brain says to start now, simply because i don't know if I'll be around later to collect more. Add in the wifey becoming eligible in September as well, we have some thinking to do.

Anybody out there have any advice/comments/disses? Thanks.
 
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GWguy

GWguy

*
Going thru this myself right now. Everybody you talk to says wait, the longer you hold out, the bigger the monthly income will be. I did some forecasting: If I wait until full retirement age (66), I only gain $500/mo. By the time I'm 72, it's about $1200/mo. Good chance I'll be dead by then. In the meantime, that's money I could be using, saving, whatever. It's in-hand and in my control. I have a decent IRA to fall back on, and not knowing how my health will fair out in the coming years or if predictions of SS reserves will disappear, I decided I will take my money now at age 62.
 
vraiblonde

vraiblonde

Board Mommy
PREMO Member
Patron
The second I qualify, I will take the money and run. I have 10 more years, so we might not even have SS by then, but my intention is to get my money ASAP. In fact, if they'd agree to cash me out right now for a lump sum instead of monthly payments later, I'd take it.
 
Larry Gude

Larry Gude

Strung Out
b23hqb said:
Now that I'm eligible to take SSI, the options on how to do it are staggering. My financial advisor says there are at least 600+ different strategies one can apply. Every neuron in my brain says to start now, simply because i don't know if I'll be around later to collect more. Add in the wifey becoming eligible in September as well, we have some thinking to do.

Anybody out there have any advice/comments/disses? Thanks.
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Yeah, listen to your gut. And hers.
 
Gilligan

Gilligan

#*! boat!
PREMO Member
I recently had a financial planner review my retirement and he concluded that I should be able to retire by age 83 and will be able to sustain myself for approximately 27 days after that...if I don't go crazy on frivolous stuff.
 
jrt_ms1995

jrt_ms1995

Well-Known Member
Gilligan said:
I recently had a financial planner review my retirement and he concluded that I should be able to retire by age 83 and will be able to sustain myself for approximately 27 days after that...if I don't go crazy on frivolous stuff.
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I think I know a way to stretch that to 35 days, but it involves large quantities of ramen noodles. :buddies:
 
Rommey

Rommey

Well-Known Member
b23hqb said:
Now that I'm eligible to take SSI, the options on how to do it are staggering. My financial advisor says there are at least 600+ different strategies one can apply. Every neuron in my brain says to start now, simply because i don't know if I'll be around later to collect more. Add in the wifey becoming eligible in September as well, we have some thinking to do.

Anybody out there have any advice/comments/disses? Thanks.
Click to expand...
I looked at the scenarios of starting at 62, waiting until full retirement age of 67 or waiting until 70. If I start at 62 I will make about $170K over the next eight years (until age 70). If I wait until 70 to start, it will take about 8.5 more years at that rate to make the same total as starting at age 62. Basically, age 78 is the break even point...from that point on I would have made more waiting until 70 to start.

Of course this all assumes there is Social Security when I'm ready...
 
b23hqb

b23hqb

Well-Known Member
PREMO Member
Rommey said:
I looked at the scenarios of starting at 62, waiting until full retirement age of 67 or waiting until 70. If I start at 62 I will make about $170K over the next eight years (until age 70). If I wait until 70 to start, it will take about 8.5 more years at that rate to make the same total as starting at age 62. Basically, age 78 is the break even point...from that point on I would have made more waiting until 70 to start.

Of course this all assumes there is Social Security when I'm ready...
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Yup. I had doubts that it would even be around at this time, and SSI cannot last much longer without real changes in it to maintain solvency. I will lose a portion of SSI anyway due to my CSRS pension due to the federal pension offset provision, so it never really was a big factor in my retirement plans. I do, however want, and except to get what is coming to me because I was docked pay into the system as required.
 
Tilted

Tilted

..
b23hqb said:
Yup. I had doubts that it would even be around at this time, and SSI cannot last much longer without real changes in it to maintain solvency. I will lose a portion of SSI anyway due to my CSRS pension due to the federal pension offset provision, so it never really was a big factor in my retirement plans. I do, however want, and except to get what is coming to me because I was docked pay into the system as required.
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I assume you're referring to Social Security benefits rather than SSI (Supplemental Security Income). I know that some people refer to the former as SSI, though I'm not sure I ever figured out why. SSI is a more conventional welfare program paid out of the general treasury and for which a beneficiary doesn't need to have quarterly work credits.

That said, I think Social Security benefits will continue to be paid for quite some time. Politically it would be too problematic to get rid of the program. Even if we did at some point decide to do so, it would likely be a gradual transition out of the program - a transition that took decades to complete.

As it is the program has enough savings to float it for a while, and then we will have no choice but to make the tweaks needed to be able to continue paying benefits. With less people working to support payments to more beneficiaries, we will have to either raise the taxes some, lower the benefits some (or hold them steadier), or reduce the number of people that are eligible (e.g. by gradually increasing the retirement ages). If we'd make the necessary changes now they wouldn't need to be that large - just tweaks as I referred to them. The longer we wait the larger the changes will need to be. But regardless we will make them and Social Security benefits will continue to be paid.
 
b23hqb

b23hqb

Well-Known Member
PREMO Member
Tilted said:
I assume you're referring to Social Security benefits rather than SSI (Supplemental Security Income). I know that some people refer to the former as SSI, though I'm not sure I ever figured out why. SSI is a more conventional welfare program paid out of the general treasury and for which a beneficiary doesn't need to have quarterly work credits.

That said, I think Social Security benefits will continue to be paid for quite some time. Politically it would be too problematic to get rid of the program. Even if we did at some point decide to do so, it would likely be a gradual transition out of the program - a transition that took decades to complete.

As it is the program has enough savings to float it for a while, and then we will have no choice but to make the tweaks needed to be able to continue paying benefits. With less people working to support payments to more beneficiaries, we will have to either raise the taxes some, lower the benefits some (or hold them steadier), or reduce the number of people that are eligible (e.g. by gradually increasing the retirement ages). If we'd make the necessary changes now they wouldn't need to be that large - just tweaks as I referred to them. The longer we wait the larger the changes will need to be. But regardless we will make them and Social Security benefits will continue to be paid.
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I see your point about the SSI part. I guess I hear that acronym enough from people it just lodged in the old brain. I certainly don't fall into that category of need.
 
kwillia

kwillia

n/a
Well, let's hope you aren't relying on stocks to be able to retire... Soros is cashing in again which means the world is about to crash.... I guess he needs to replenish his stash after all the money he has spent to control our political environment... :ohwell:

http://www.wsj.com/articles/a-bearish-george-soros-is-trading-again-1465429163

After a long hiatus, George Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles.
 
b23hqb

b23hqb

Well-Known Member
PREMO Member
kwillia said:
Well, let's hope you aren't relying on stocks to be able to retire... Soros is cashing in again which means the world is about to crash.... I guess he needs to replenish his stash after all the money he has spent to control our political environment... :ohwell:

http://www.wsj.com/articles/a-bearish-george-soros-is-trading-again-1465429163

After a long hiatus, George Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles.
Click to expand...

Anybody who has a balanced portfolio will have stocks as a portion of it, but the key is balanced.
 
Monello

Monello

Smarter than the average bear
PREMO Member
Lacking a crystal ball, it's hard to tell how things will play out in the future. I think you have to make your decision based on how things are currently and not how you think they will turn out in the future. I've read a few articles that claimed the government was eyeing monies stashed away in IRAs & 401Ks. Those article authors pointed out some BS about the distortion of available funds for retirement verses the folks that live paycheck to paycheck and don't have a nest egg. How that isn't fair to the poor planners and all.

Another factor is longevity. I think you have to factor in your family history. If you have a lot of relatives that make it into their 90s then that is something to consider. Personally I had 2 people from my high school days pass away. They were 58 & 60 years old. I'd be lying if I said it somehow didn't make me feel vulnerable and that we can all go at any minute. And on that thought, enjoy the rest of your day.
 
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