Taking SS early (62)

[nm.otter]

We would have stuck with them if they had gotten the long-promised HDHP qualification that congress never quite got around to.

 

[RyanT26]

Not specifically Social Security, but retirement related. If you pension/company retirement has a lump sum payout option (10-50%) does it ever make sense to take it?

Take a 10% payout and payoff what is left on the house or just take the max monthly benefit?

 

[SDHNTR]

Not specifically Social Security, but retirement related. If you pension/company retirement has a lump sum payout option (10-50%) does it ever make sense to take it?

Take a 10% payout and payoff what is left on the house or just take the max monthly benefit?

Don’t guess. Don’t feel. Answer the questions with math.

 

[JustABritCrazy]

I had the option to pull my money out of the pension system or leave it in at a guaranteed 4%. Leaving it in would give me a higher monthly payout. Pulled it out and gave to the financial guy to manage. It’s been making me 6% for 4 years now. I haven’t touched it yet.

 

[Southpaw1331]

I will turn 63 tomorrow and will probably sign up for SS after the first of the year. I was curious if many people supplement their retirement income with dividend stocks. I have been moving my portfolio to income type assets the last five years or so. Mainly dividend ETFs, REITs, consumer staples, utilities and oil and gas.

 

[49ereric]

I had the option to pull my money out of the pension system or leave it in at a guaranteed 4%. Leaving it in would give me a higher monthly payout. Pulled it out and gave to the financial guy to manage. It’s been making me 6% for 4 years now. I haven’t touched it yet.

Bull market can make you better returns until the bear comes around.

 

[Fullfan]

No doubt I will take mine at 62. Retired at 49 12 years ago, and it is not that I need the $$. Wife runs her own business and makes way more than I ever did. Just feel that it is mine and I earned it, and also not one of us is promised tomorrow.

 

[JustABritCrazy]

Bull market can make you better returns until the bear comes around.

I understand that. View the stock market as a step above betting on a football game. My portfolio has a lot of stocks in it, but also bonds and annuities. Plus I think the market is overvalued. I’m surprised the bull has kept the bear away for as long as it has. I’m good with the return I’m getting.

 

[SDHNTR]

No doubt I will take mine at 62. Retired at 49 12 years ago, and it is not that I need the $$. Wife runs her own business and makes way more than I ever did. Just feel that it is mine and I earned it, and also not one of us is promised tomorrow.

That’s fine, but assuming you are healthy, your feelings are actually contradictory to the statement you just made. If you take it at 62, your feelings will penalize you and actually cost you much of the very money that you rightfully earned. The Gov is taking from you! Not the other way around.

 

[49ereric]

That’s fine, but assuming you are healthy, your feelings are actually contradictory to the statement you just made. If you take it at 62, your feelings will penalize you and actually cost you much of the very money that you rightfully earned. The Gov is taking from you! Not the other way around.

Plus if the funding is not fixed by @2033-2034 a @25% cut or more is coming.

 

[pacoalcracker]

We need to enroll congress into the same SS fund everyone else is. They will find a remedy for the funding real quick.

 

[nm.otter]

if the funding is not fixed by @2033-2034 a @25% cut or more is coming.

Don't bet on that happening. It's been intermittently looming since about 1976.

 

[49ereric]

Don't bet on that happening. It's been intermittently looming since about 1976.

Social security amendments of 1983 was the last major overhaul I believe.
Not betting on congress fixing the funding issue. Waiting until 70 to file.

 

[nm.otter]

Attached PDF (from the guy behind ShadowStats) has some interesting backstory.

 

[texag10]

I will turn 63 tomorrow and will probably sign up for SS after the first of the year. I was curious if many people supplement their retirement income with dividend stocks. I have been moving my portfolio to income type assets the last five years or so. Mainly dividend ETFs, REITs, consumer staples, utilities and oil and gas.

I've seen it a ton with clients, and like about everything in planning, it's a case by case basis if it makes sense.

The thing I see that drives me crazy is people who are going for dividends over everything in their taxable accounts, lose out on total return, then are going to be in a tax pickle once they got RMD age with the combo of forced income from taxable dividends and IRA distributions.

 

[TaperPin]

The wife and I just had this discussion and the only way getting an early payout makes sense is if someone is sickly, not likely to live a long time, and not the higher earner. Survivorship benefits become the higher of the two payouts.

Plenty of drinkers and two pack a day smokers are living well into their 80s, and active healthy people are common in their 90s, so that’s a lot of years of reduced payments taking it early. Two of my friends should definitely take it early, they are luckily to make it this far, and another couple will easily live to be 100 at the rate they are going.

The talk of it going away is perpetuated by corporations and billionaires that don’t want to pay their fair share of taxes and spend huge amounts of money to get tax breaks at our expense. Even Warren Buffet thinks the funding should include more of a contribution from the highest tax bracket. People vote for things against their best interest by believing those who do benefit, which makes no sense whatsoever, but is what it is.