Reply to Social Security Family Benefits and Early Retirement Age

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[quote=Anonymous][quote=Anonymous]If you provide more specific info upfront, maybe you could've gotten better responses.[/quote]

I posted general information to help others, and hoped someone had done the complicated benefit calculations in case I overlooked something.

The wrong advice here includes:

[list]
I should not try to get the most money.  
I should only care about annual cash flow after age 70 instead of extra money from age 67-70.
My wife must be 62 to qualify.  No, spouses get benefits if they care for kids under 16, subject to a family maximum (which is binding with two kids).
250k = 10k/year before taxes.  That is only 4%, but mortgage and Baa bond yields exceed 6%.
Quadruple your money in the stock market.  I already invest in the stock market.  Social security is less risky.
[/list]

Let me do an example to help the math-challenged.  The question is whether to take $7k per month for three years, or take an extra $1k per month for life.   With 0% interest, I make more money by waiting if I live for 252 months, i.e., 21 years, i.e., until age 91.  But with an interest rate of 6% per year compounded monthly, accumulated payments from age 67 to age 70 will grow to $275,352.23.  Then I must lift until 95.  Even if I live forever, a 4.45% annual interest rate will generate $1k extra per month.

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