Social Security Questions

[Bob Denman]

Spoken like a person who has never experienced real poverty, hunger or illness that you can't afford to treat.

It's not a "fascination".

You survived...:congrats:

 

[IdahoMtnSpyder]

I guess that I've never understood the fascination with reducing a Life to a mere math problem.

Insurance actuaries live to do just that! You do sell life insurance, right?

A couple of years ago my dentist was pushing me to get a crown. I said if I had a reasonable expectation that it would be a 20 year investment I'd probably go for it. But since family history indicates it would likely be at most only a 10 year investment I took a pass. Besides, he has done a great job keeping my tooth together without a crown! I asked my brother several years ago if I should use redwood or treated pine 4 x 4's for posts for a fence in the back yard. He said to use the redwood. They were straighter and easier to use, and look nicer. "Besides, they're going to outlast you anyway!"

Just a few weeks ago I did a spreadsheet analysis of the financial benefits of selling our house and downsizing to one that would have been a great buy. Because current interest rates are higher than my current mortgage I guesstimated it would take 10 years to come out ahead by any significant extent so I said I'll pass on it. And that was based on taking all of the equity from our current house and putting it into the new house! Why 10 years? Family history strongly indicates that by the time 10 years from now have come and gone both I and my wife will be residents of the local final resting place.

Yep, after about age 65 projected life expectancy begins to be a significant factor in planning future activities.

 

[Bob Denman]

I'm a P&C broker

 

[ARtraveler]

Best advice is to consult with a good financial adviser.

 

[Joe T.]

From another website:


Have you tried this?
https://www.ssa.gov/myaccount/


I had not found this site. Too many commercial sites that use Social Security as 'Click Bait.'

This was a real help! Accurate data, for the present time.

Joe T.

 

[Joe T.]

IdahoMtnSpyder,

Thank you. Very helpful.

I just found the SS "My Account" website and the wife and I just signed up. That was helpful, too. Thankfully, I did that. The rough estimator on the open SS site had overestimated my benefits, if I started them now, by several hundred dollars. But, if I started them when I turn 70, both the rough estimator and the 'My Account' estimates were almost exactly the same.

Regards,
joe T.

 

[IdahoMtnSpyder]

From another website:


Have you tried this?
https://www.ssa.gov/myaccount/


I had not found this site. Too many commercial sites that use Social Security as 'Click Bait.'

This was a real help! Accurate data, for the present time.

Joe T.

Sorry I didn't think to include that link in my first post above where I mention setting up an account. Glad you found it. You need to set one up for each of you. No such thing as sharing info, even between spouses, on SSA.gov

 

[Joe T.]

Sorry I didn't think to include that link in my first post above where I mention setting up an account. Glad you found it. You need to set one up for each of you. No such thing as sharing info, even between spouses, on SSA.gov

Thanks again.

We set up separate accounts about an hour ago.

:2thumbs:

Joe T.

 

[ThreeWheels]

I'll be 66 next February.
I'm going to start taking my SS then, because there is no penalty for working full time and taking my benefits.
I can add my full salary and my full SS benefits to my income. Yes, I'll need to pay taxes on it, but I figure I can put my SS into my 401K plan and that will eliminate the additional taxes and I'll be saving that extra money instead of spending it.
Here's my thought. Yes, if I wait until 70, I'll receive a higher monthly benefit from SS. How much higher is that benefit ?? Meanwhile I'll be getting a smaller SS Check, for 48 months longer. That's a tough benefit to give up.

Just my opinion, I'm not a professional financial advisor. I could be wrong, and if I am, I'm sure that will be heartily pointed out by others who know better.

 

[IdahoMtnSpyder]

but I figure I can put my SS into my 401K plan and that will eliminate the additional taxes and I'll be saving that extra money instead of spending it.

Nope. 401k and IRA accounts must be funded from earned income, which means wages, salaries, and self employment earnings. The only way to contribute to an IRA after retirement is to work part time and put that money into the account, or roll over via custodian to custodian transfer money from your 401k or another IRA.

 

[wyliec]

I guess that I've never understood the fascination with reducing a Life to a mere math problem.
If you have friends and family with you when your time comes: it won't matter how you lived your waning years. You will have left a better legacy than most! :thumbup:

Whether it’s SS or health concerns, it seems the fascination is the same; it’s a mere math problem with regards to how much and how you spend it.

 

[canamjhb]

Nope. 401k and IRA accounts must be funded from earned income, which means wages, salaries, and self employment earnings. The only way to contribute to an IRA after retirement is to work part time and put that money into the account, or roll over via custodian to custodian transfer money from your 401k or another IRA.

As I read it, he plans to continue working while drawing SS and putting the amount of his SS into his 401K. That is OK as long as his earned income exceeds the 401K contributation. But, as he stated, all his income, SS and earned, will be taxable, less 401 contributation which is deferred.

My opinion is that the actuaries have the system set so that no matter when an individual starts drawing SS, it pretty much comes out even, unless you outlive expectations by a bunch. Then you have beaten the odds and you win.... If you wait until your 70 to draw SS and die a year later, you lose..... But then who cares..... Jim

 

[IdahoMtnSpyder]

As I read it, he plans to continue working while drawing SS and putting the amount of his SS into his 401K. That is OK as long as his earned income exceeds the 401K contributation. But, as he stated, all his income, SS and earned, will be taxable, less 401 contributation which is deferred.

I think you read it better than I did! Technically though, the SS will have to stay in his bank account and the equivalent amount from his paycheck will have to be paid directly from the employer to the 401k. It does matter where the deposit comes from. You can make contributions yourself from your earned income to an IRA.

 

[Bob Denman]

Whether it’s SS or health concerns, it seems the fascination is the same; it’s a mere math problem with regards to how much and how you spend it.

:agree: But there's many more ways to "measure one's Life"...

 

[al0vely]

This is all an interesting read - not knowing my life expectancy I will start drawing mine at 62 in 2021.

Life is for the living and I am going to enjoy it on my Spyder for as long as I can post-retirement. Work is over rated for me - I have enough money to live comfortably for a long time excluding my 401k which is losing by the thousands each day here lately.

 

[Easy Rider]

Nope. 401k and IRA accounts must be funded from earned income, which means wages, salaries, and self employment earnings. The only way to contribute to an IRA after retirement is to work part time and put that money into the account, or roll over via custodian to custodian transfer money from your 401k or another IRA.

Guess you missed the part where he said he is still working FULL TIME.

 

[Easy Rider]

It does matter where the deposit comes from.

No it doesn't.
It is the amount that matters.
Once the dollars all go into a common account, all dollars are the same.

 

[PrairieSpyder]

. . .
My opinion is that the actuaries have the system set so that no matter when an individual starts drawing SS, it pretty much comes out even, unless you outlive expectations by a bunch. Then you have beaten the odds and you win....

It's really just a calculation as to the value today of some future stream of income. That's why it comes out even. The only issue would be the "discount rate" (cost of capital) they use in their calculations.

 

[Bob Denman]

 

[wyliec]

This is all an interesting read - not knowing my life expectancy I will start drawing mine at 62 in 2021.

Life is for the living and I am going to enjoy it on my Spyder for as long as I can post-retirement. Work is over rated for me - I have enough money to live comfortably for a long time excluding my 401k which is losing by the thousands each day here lately.

Yeah, it was 62 for me, 8 years ago. There was never a 2nd thought of waiting.