skipro3 wrote:
And when can you use the SS money? While you are young enough to enjoy it is when. At 62 I'll still have enough of my physical AND mental function to go out and have fun. At 78, not so much....
But here's an idea for those who think waiting is a better idea; take your SS at 62 and invest it until 65, 66, 70 or when ever you think you would retire and draw SS. Let's just say, for round numbers, your SS will be $1,000 a month. (That way you can just use simple arithmetic to extrapolate to your actual SS payment). Now, investing $1000 for 4 years at 8% interest (that's the amount SS claims your increase in SS would be if you waited) you would have a nest egg of a bit over $56,000. That money is yours and can be handed down to your heirs, unlike a SS monthly benefit which dries up when you die. So now take that $56,000 and keep it invested and draw $400 a month. It will last over 25 years, or age 91. Probably well past your life expectancy. And if you need a cash infusion for something, an emergency for example, well you have $56,000 in your savings.
This is a no-brainer. As long as you are able to have the discipline to save, it's dumb NOT to take SS at the earliest possible date.
This is a great plan ... if you are retired or semi-retired. However, there is always a BUT. If you still work and earn more than $11K a year you have to pay back money to the SS fund, not only that but being you are earning income of more than $11K and SS counts as additional income too, you are taxed at a higher rate. This plan works AFTER you are 66.5 years old (can earn as much as you can handle then) except for the tax part. Now at 66.5 years old you can bank the $1000 a month toward the $56K. Remember also that your forced Medicare payments (of however much they raise it to) comes out of your SS check when you are 65 even if you do not draw SS yet.
