Just to have a little fun here:
True this option is a real gamble where you could very well kick the bucket without having received a single dime, or very little if you lived only to slightly above seventy. Remember you decided you can do this because at the time you did not need the money. In exchange you will be compensated 32% "of course if you live to see it" more if you defer, when you may actually need it.
Tthree, technically speaking, if one was to follow your plan and retire early and invest the Social Security money for 13 to 18 years having saved slightly over $ 130 k extra in their bond savings, could this not also be considered a real gamble or deferral? Because you also have not actually spent a dime yet , but have saved a little more for your blood thirsty heirs to find more reasons to get rid of you. Most likely the extra $130 k will not all be there anyway since you most likely gave some to the blood thirsty relatives who pretended you were their best friend.
Last edited by BoSox; 06-15-2017 at 05:48 AM.
Think you may need to read the social security calculation rules thoroughly on their website before giving advice. Your earnings for each year that goes into the calculation is indexed for inflation, the indices are recalculated each October. I am 68 and have not chosen to take my ss retirement -- the calculations I get from social security reflect both the 8% per year increase after full retirement age (in my case 66) and any COLA adjustments.
true in Canada, not sure about the US.
Employees or self employed individuals who take early CPP (Canada Pension) are still required to make CPP contributions to age 65. Adjustments are then made to CPP payments on an annual basis to reflect the additional contributions.
Generally earned income is subject to ss taxes regardless of age or retirement status. Your social security and/or other pensions and IRA distributions are not considered to be earned income. This makes choosing how you treat your gambling winnings after retirement kind of tricky. If you choose professional gambler status you can deduct expenses associated with your "gambling business" (travel expenses, training software, losses, etc.)-- but you will also have to pay self employment taxes (~2X ss taxes) on your net gambling income. If you do not choose professional gambler status, then your gambling "hobby" net winnings are not considered to be earned income and are not subject to ss taxes (when I say net winnings, you can deduct any gambling losses from your winnings.) Another consideration is that if you do not choose professional gambler status, your Medicare premium is tied to your adjusted gross income before you deduct gambling losses, where as a professional gambler, only your net gambling income affects the adjusted gross income and your Medicare payment.
Last edited by Joe Mama; 06-15-2017 at 07:27 AM.
It depends on the liquidity of your brokerage account and how quickly you can convert it to physical cash and how low the transaction fees are. Takes about 4 days for me and costs next to nothing. So basically cash reserves don't need to be bigger than trip bankroll.
"Originally Posted by Bigdaddy
My conclusion is (contrary to popular opinion) that it is probably best in most cases to take at age 66. You can decide for yourself."
Three replied with:
"I helped my uncle with this decision a while back and came to the same conclusion. When I pointed out he could park the money he would defer and earn a return on it he saw the decision wasn't even close. In the very unlikely event that he lived long enough to start accruing a tiny bit extra he would likely not be able to do anything with it anyway."
Further down Moses wrote:
"Unless you are telling me you can take it with you. Acquiring assets is one thing. Enjoying them is quite another. i have to admit being far better at the former than the latter. But Im working on it. "
I put a few bad jokes in the thread, but when all was said and done I decided to take the advice of you three brilliant mathematical minds, and take Social Security at full pay, without the bonus. Thank you all, the subject came up at the perfect time for me.
Last edited by BoSox; 07-12-2017 at 03:02 PM.
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