SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    Thoughts on early Social Security
Page 1 2 3 
Go
New
Find
Notify
Tools
Reply
  
Thoughts on early Social Security Login/Join 
His Royal Hiney
Picture of Rey HRH
posted Hide Post
quote:
Originally posted by honestlou:
Thanks for all the replies, especially 6guns and Fed161. I did a search before I posted but didn’t see the earlier thread- maybe I didn’t go back far enough.

My conclusions are as follows:
a) if you’re going to continue working past 62 earning more than the threshold ($26k?),then wait to start collecting because you get royally screwed on the additional income;
b) for me, and I think the majority of people (from my research), the math works out to about a 10 year breakeven point past your full retirement age. If I start collecting at 62 instead of 67, I’d be 77 before the amounts even out, at which point I’d be better off if I had waited- EXCEPT that doesn’t take into account inflation, the present value of money versus future value, or the ability to earn any return on the money taken during those five years.

Considering inflation and the present value of money, I am inclined to start taking it at 62. Fortunately, my work situation as a business owner is such that I can just pay myself rent instead of salary, and that is not earned income that would reduce my benefits. At least that is my understanding- rental income, capital gains, interest, dividends, etc, do not trigger that reduction in benefits.


I like your thinking but I hope you run your idea with a CPA first. I understand it specifies "All other income" as Pensions, wages, Interest, Ordinary Dividends, Capital Gains Distributions, and Tax-exemp interest income such as interest on municipal bonds. But I imagine that if you have to report anything as taxable income such as rent paid to you by the business you control, that's going to get flagged just in time for when they have more IRS agents to do audits.



"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
 
Posts: 20771 | Location: The Free State of Arizona - Ditat Deus | Registered: March 24, 2011Reply With QuoteReport This Post
His Royal Hiney
Picture of Rey HRH
posted Hide Post
quote:
Originally posted by old rugged cross:
is their some provision in SS code that a spouse can collect another spouse's benefit if they are both alive.
Someone here mentioned that in a previous post. They probably were talking about something different.


It's called spousal benefits. You're entitled to one half of your spouse's benefits. But, if you're still married to your spouse, they need to have applied for benefits already. And if they applied past their Full Retirement Age and getting more than their FRA benefit, you get only half of their FRA amount.

The exception is if you're divorced from your spouse then you don't have to wait until they apply for SS. You can apply and get 1/2 of their FRA benefit.

You would only apply for spousal benefits if your own benefits are smaller than 1/2 of your spousal benefits. When you do apply, they determine which is higher and give you that. This prevents people from applying for spousal benefits and delaying their own until age 70.



"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
 
Posts: 20771 | Location: The Free State of Arizona - Ditat Deus | Registered: March 24, 2011Reply With QuoteReport This Post
Member
posted Hide Post
quote:
Originally posted by Rey HRH:
quote:
Originally posted by old rugged cross:
is their some provision in SS code that a spouse can collect another spouse's benefit if they are both alive.
Someone here mentioned that in a previous post. They probably were talking about something different.


It's called spousal benefits. You're entitled to one half of your spouse's benefits. But, if you're still married to your spouse, they need to have applied for benefits already. And if they applied past their Full Retirement Age and getting more than their FRA benefit, you get only half of their FRA amount.

The exception is if you're divorced from your spouse then you don't have to wait until they apply for SS. You can apply and get 1/2 of their FRA benefit.

You would only apply for spousal benefits if your own benefits are smaller than 1/2 of your spousal benefits. When you do apply, they determine which is higher and give you that. This prevents people from applying for spousal benefits and delaying their own until age 70.


Outstanding and 100% accurate summary. You summarized everything very succintly. Very well done. I would love to have had you as an employee when I ran an SSA District Office.
 
Posts: 1138 | Location: New Jersey  | Registered: May 03, 2019Reply With QuoteReport This Post
His Royal Hiney
Picture of Rey HRH
posted Hide Post
quote:
Originally posted by Fed161:
quote:
Originally posted by Rey HRH:

It's called spousal benefits. You're entitled to one half of your spouse's benefits. But, if you're still married to your spouse, they need to have applied for benefits already. And if they applied past their Full Retirement Age and getting more than their FRA benefit, you get only half of their FRA amount.

The exception is if you're divorced from your spouse then you don't have to wait until they apply for SS. You can apply and get 1/2 of their FRA benefit.

You would only apply for spousal benefits if your own benefits are smaller than 1/2 of your spousal benefits. When you do apply, they determine which is higher and give you that. This prevents people from applying for spousal benefits and delaying their own until age 70.


Outstanding and 100% accurate summary. You summarized everything very succintly. Very well done. I would love to have had you as an employee when I ran an SSA District Office.


Well, thank you! My work included understanding and helping to specify rules and regulations to both prevent gaming by others and taking full advantage of them for my side. So when something touches my situation, I like to fully understand the relevant factors.



"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
 
Posts: 20771 | Location: The Free State of Arizona - Ditat Deus | Registered: March 24, 2011Reply With QuoteReport This Post
Member
posted Hide Post
I took mine ASAP. Figured the break even point is early 80"s. For me it was primarily about cash flow in retirement. I could either start the SS or start tapping my IRA. I prefer to leave my IRA alone and keeping those funds invested. If I die prior to the break even, my wife still has my untapped IRA. The SS benefit stops.
IMO your question is very individual specific and depends on other income sources in retirement.
From a pure math standpoint you get more from SS if you live into your 80's and wait until FRA to start taking it. But, living well into your 80"s isn't a given.
 
Posts: 2197 | Location: Just outside of Zion and Bryce Canyon NP's | Registered: March 18, 2012Reply With QuoteReport This Post
Member
posted Hide Post
Some really great advice here!!!!! I have a pension from the govt, retired police officer. Paid into the Public Employees Retirement System (Ohio). I had enough quarters to qualify for SS before I began in LE, and off duty jobs also paid into SS while paying into the system.

I retired in 2020 and I collect a nice pension, plus I work part time in a different field. I checked into SS benefits a few years ago. I was told that because I have a govt pension, My SS benefits would only be about $300.00 a month before taxes. I'm 63 now and plan on not touching that money until I'm 67. I had toyed with the idea of taking the money at 62, and putting it into my Edward Jones accounts. But, with the market instability I decided not to. Also, I believe taking it early will impact the wife's survivor benefits.
 
Posts: 672 | Registered: February 20, 2003Reply With QuoteReport This Post
  Powered by Social Strata Page 1 2 3  
 

SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    Thoughts on early Social Security

© SIGforum 2025