Reply to Social Security Family Benefits and Early Retirement Age

Forum Index » Money and Finances

Reply to "Social Security Family Benefits and Early Retirement Age"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]if you have young kids  and [SAHM] then I would wait and take the max at 70, giving no thought to break even. [/quote]

[quote=Anonymous]The wife still has to reach retirement age to take the spousal benefit if OP is alive.[/quote]

OP here.  I'm appalled at the financial ignorance here.  I paid the maximum for 35+ years and deserve to maximize my benefits.  A wife gets extra money if she cares for dependent children under age 16, even if she is under 62, subject to a family maximum.

The question is whether to take $4k/month plus $3k in family benefits at age 67, or take $5k/month starting at age 70.  If I collect $7k/month for 3 years then I can save $250k+ by age 70.  I can then invest that extra money for my wife and kids and earn more than the extra $1k per month.

[/quote]

You're not wrong about financial ignorance here, but it's kind of ironic that you're seeking an answer to a question that is very basic. 250k = 10k/year before taxes. And SS increase appears to be 12k/yr. So SS appears to be the winner. But how much confidence do you have in SS? What about your other finances? Is there a benefit for you to have 250k in a taxable account? [/quote]

your "basic" math fails to account for the fact that the yearly increase is irrelevant.

at the extra$12k a year, OP would have to live 21 more years to 91 to accrue the "extra" $250k. in 21 years,[b] if OP just directly invested it in the S&P, that could become closer to one million dollars,[/b] and also does not rely on OP living until 91.

also, given the uncertainty of SSA, money in hand now is better.
[/quote]

OP would need a withdrawal rate approaching 5% to earn an extra 1k per month.When factoring in sequence of return risk of 100% stocks, OP might do OK or not. You're also not factoring in a level of volatility that few 70 year olds could stomach. Personally, I'd take the money, but I also spent 5 seconds thinking about this  lol[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics