Escargot wrote:
JAXFL wrote:
... To the OP, I have a question. Are you planning to continue to work and draw SS at 62? If so and you make over abuut $10.5K a year then you will be loosing money as you have to pay back $1 for every $2 over the $10K mark....
I believe the payback is $1 for every $2 earned over $40K annually.
I could be wrong, so if anyone knows for sure, please correct me. Thanks.
The limit amount changes from time to time. For 2014, the limit for early retirees is $15,480. Above that amount, you lose $1 for every $2 earned.
wski wrote:
If you take social security at 62 and invest it in good growth mutual funds for 5 years you will not only have a large pot of money to draw on, but the growth on your investments will offset the reduction factor and increase the break even point.
That's true, if you assume that a person who waits until full-retirement age to start social security benefits will spend those benefits. However, if that person invests, in the same fashion as your early retiree, you are again looking at a break-even point, down the road. All things equal in the investment environment, the break-even point will not change.
Tom
