Down goes the Dow

J. Hardy wrote:

Say wha? wrote:

If anyone still doubts that Igy is a troll, this should convince you otherwise.

My guess is Igy misspoke here. He is still working with a stay-at-home wife, so collecting at 66 is not something he would likely do (assuming he expects to live into his 80s).

We now know that Igy meant what he said. This serves as a reminder that there are many variables involved in a decision like this and each situation is different.

Igy has his reasons for passing on a higher return. At some point in the future it will be known whether or not he made the best choice. Hopefully that won’t be for quite some time (and that he learns he made the wrong choice! ?)

these are the scary headlines

https://www.bloomberg.com/news/articles/2018-08-29/melt-up-on-the-mind-as-relentless-u-s-stocks-approach-euphoria

J Hardy,

Thanks for the concern for my welfare. Running some quick numbers taking Social Security now and continuing to work gave me the ability to save additional funds, lowering the financial risk of an earlier death while reducing longevity risk. Even using very modest assumptions I would have $1,000 more a month at age 82 by my taking Social Security at age 66. Of course I have to continue to work and save which I have so far been able to do.

Igy

Ghost of Igloi wrote:

Even using very modest assumptions I would have $1,000 more a month at age 82 by my taking Social Security at age 66. Of course I have to continue to work and save which I have so far been able to do.

Igy

Even with a 65% drop coming, you’ve found a way to increase your SS payment at 82 by 37% or more?! Do tell.

More record highs today!

Ghost of Igloi wrote:

J Hardy,

Thanks for the concern for my welfare. Running some quick numbers taking Social Security now and continuing to work gave me the ability to save additional funds, lowering the financial risk of an earlier death while reducing longevity risk. Even using very modest assumptions I would have $1,000 more a month at age 82 by my taking Social Security at age 66. Of course I have to continue to work and save which I have so far been able to do.

Igy

Help me understand this. You don’t NEED social security right now because you’re still working. You just WANT it now instead of waiting for a larger monthly payout when you turn 70. Correct?

No. I don’t believe I said I don’t need Social Security. In a nutshell, my business partner gets more income while I cut back my hours. Social Security more than covers lost income. While continuing to work I get deferred compensation and an enhanced match to my 401k. The additional savings which also includes a portion of Social Security has a greater future value than the additional income after age 82 (breakeven point). Besides Social Security is funded until the time I turn 82, at that point if things don’t change benefits will be cut.

On the edge of my seat wrote:

Ghost of Igloi wrote:

Even using very modest assumptions I would have $1,000 more a month at age 82 by my taking Social Security at age 66. Of course I have to continue to work and save which I have so far been able to do.

Igy

Even with a 65% drop coming, you’ve found a way to increase your SS payment at 82 by 37% or more?! Do tell.

Discount rate of 2% from age 66-70, and 4% from age 70-82. My portfolio is hedged for the decline. The additional savings grows on a tax deffered basis from 70 to age 82. That number has a greater future value than the larger monthly benefit at age 82. Simple really.

"Simple really"? Not to me it isn't.

I thought i understood Social Security but you lost me a long time ago.

But kudos to you in that you seem to have a very solid grasp on your best strategy.

I was kind of thinking i'd retire before 65 and i've never run the numbers but tell me, please, that isn't a collosal mistake. We are not reliant on the S.S. benefits but i don't want to throw away boatloads of money, either.

I've only recently been generally introduced to Medicare and briding those payments for a few years seems doable.

Don't feel like you have to respond. I just didn't realize it would be that complicated.

Seattle,

I would wait until at least your FRA (Full Retirement Age). If one takes SS at the earliest date, age 62 one would lose 25% of the FRA benefit. Your likely FRA is 66 with perhaps an additional month or two. You can postpone taking a benefit to age 70, and the increase in benefit is 8% per year. The breakeven point from 66 to 70 is life expectancy to 82-84. It would proably be a better srategy to access investments until you hit your FRA. The decision to let the benefit grow beyond the FRA should be based on life expectancy and other sources of income. You are at that point playing game theory on which is the best strategy. I doubt whether I will care much at 82-84, and with my disease there is a high risk I won’t make it that far, which ignores normal life expectancy for a male. A 65 year old male has a life expectancy to 84.3 years. Of course the tendency is to think I run, eat well, never had any issues at all, then here I am a cancer patient. Big important decision, glad I made my choice, which was a little over a year before my diagnosis.

Hope this helps.

Igy

Seattle,

Also, go to

www.ssa.gov

you will find calculator that you can use. If you are married and your spouse has earnings (Principal Insurance Amount-PIA) there are additional strategies that are available depending on your age differeces (that did not benefit my family). An individual can register and receive specific information on your benefit, similar to the SS statement you receive after age 50 (I believe).

Igy

Igy, we will still be chiding the hell out of eachother well into our 80s and beyond.

Along those lines, glad to hear you are doing so well!

Thank you very much for that explanation on S.S.

Quick question, if i may:

Not taking the benefit until 70 or whenever is not an issue, not a problem.

Of greater concern to me is when i retire (stop working). Does it matter much if i stop working earlier than 65/66? A slight difference in benefit is of no concern. So, you see, my ideal would be to retire early and not take benefits until 70, which would be just fine with me.

Thanks again.

...and thanks for posting that link. I didn't see it before i made my last post so that may answer my question. Thx. much.

Seattle,

Thanks. Actually the odds are relatively good for me based on pre and post-treatment metrics.

My understanding is there would not be a significant difference, because the benefit is largely based on the PIA you already earned. Benefit amounts also get an inflation adjustment. My benefit has increased by about $50 a month in the last two years. When you get closer to making a decsion register online with SSA and email them. Verify any information you find on the website with a real and knowlegeable person. Like anything you can get a different answer depending upon who or how the question is addressed.

Igy

Your the pro, Igy.

Thanks and I'll do that.

Your battle over the last months has been inspiring. It really makes one appreciate those things we've spent our lives doing and we might otherwise take for granted.

Running and the active lifestyle, i guess just has a very good return on investment.

-SP

Seattle,

Yes. I have benefited from a very nice and solid family. My wife (of 43 years) was there today when I met with the radiation oncologist, and throughout my treatment. Fortunately I have respected my health, but obviously it is now at the top of my list. Has to be to help others.

Enjoy your Labor Day weekend, the markets, Diamond League and college football. Coach Pete is the real deal. Daughter graduated U-Dub law school. So two reasons to watch the Huskies. They had a fund raiser for scholarships at BSU the “Beat Coach Pete 5K.” If you beat him you got a shirt “I Beat Coach Pete” if not “I’ll Beat Coach Pete Next Year.” He was pretty tough you has to run about 24:00 to finish in front of him. One of my colleagues worked with him and has testified to his character. Well loved here in Boise.

Igy

Likewise, enjoy your labor day weekend, Igy.

And i didn't know that about Chris Peterson. being a runner.

seattle prattle wrote:

Likewise, enjoy your labor day weekend, Igy.

And i didn't know that about Chris Peterson. being a runner.

Refreshing to see y’all being civil to one another!

seattle prattle wrote:

Likewise, enjoy your labor day weekend, Igy.

And i didn't know that about Chris Peterson. being a runner.