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Retirement SSI????

Discussion in 'Off Topic Threads' started by chipdaddy, Aug 4, 2013.

  1. chipdaddy

    chipdaddy Member

    Joined:
    Feb 19, 2009
    Messages:
    196
    To take SSI and keep working, my age is 66, I'm still working and enjoy my job. What is the formula for taking SSI, I don't want to get spoiled with the extra income and then hit the wall when I really do retire. I know the added SSI on top of my job will increase my tax bracket, I guess if I drop dead I won't know what I missed. At this point I plan to work until I'm 70 to get the max benefit. Any ideas??? Thanks. Jerry
     
  2. JIM SIMS

    JIM SIMS Member

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    Jan 28, 2008
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    152
    I would suggest making a appointment at your local SS office and get the details,there are MANY variables they don't tell us about.
    GOOD LUCK
    JIM
     
  3. Shootrman

    Shootrman Member

    Joined:
    Jan 29, 1998
    Messages:
    766
    Why collect it now? If you continue to work. I believe you get the most Fromm SSI at 70, not 66
     
  4. Firewater

    Firewater Member

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    Sep 6, 2009
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    392
    If you wait four years you may collect another 30.00 to 40.00 / month. Thats 360.00 to 480.00 pr year. 1800.00 pr month now times 12 months=21,000. That equals 84,000. in four years. If you wait four years and then live another 10 years and collect the base plus the extra 480.00 that equals an extra 4800.00. I decided to go ahead and take 84,000 for the next four years,rather than hope I live to the age of 80 in which case I will have made an extra 4800.00. For some reason 84,000 seems like more money than 4,800 to me.And it only takes four years rather than fourteen.The SSI hopes that you never take it. Mike
     
  5. 635 G

    635 G Well-Known Member

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    6,214
    Take the money as soon as you can, unless you've got a signed contract from God !!!! Remember the Gov't is betting you're gonna die , before they lose money.

    Phil Berkowitz
     
  6. PatMiles

    PatMiles Well-Known Member

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    Phil,

    +1!

    Pat
     
  7. no5shooter

    no5shooter Member

    Joined:
    Jan 29, 1998
    Messages:
    453
    Yup, I'm exactly in your boat, just a couple years ahead of you. I opted for the SSI at 66 and am still working. Don't treat the SSI as just more income; either bank it or use it for specific "retirement preparation," like debt reduction or buying a new car just before pulling the pin, whatever. I want your plan to work, cuz it's about the same as mine!
     
  8. primed

    primed Well-Known Member

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    Each year you work after 66 without taking SSI will mean an extra 8%, which comes to a lot more than 30 - 40 per month. If you wait until 70 to start, that will mean approximately another 32% in benefits. Not a bad return if you're healthy. Not a good idea if your health is poor perhaps.
     
  9. DoubleAuto

    DoubleAuto Well-Known Member

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    Location:
    Out On The Mountain
    Primed's figures are correct. Not an easy decision to make. I am less than one year away from 66 and will have to decide whether to take it then or wait.
     
  10. chipdaddy

    chipdaddy Member

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    Feb 19, 2009
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    Thanks for the advice, just need to figure it out. Jerry
     
  11. 635 G

    635 G Well-Known Member

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    Look at the 4 years of payments you will have received, plus the 4 years of payments you will paid addition into the system. Add them up. Divide the total by the added additional revenue. Thats your break even time frame. If you're a man---don't expect to live much past 80. And I mean live--not vegitate in a nursing home.

    Phil Berkowitz
     
  12. dmarbell

    dmarbell Active Member

    Joined:
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    The basic formula for those who will receive the full benefit at age 66 (full retirement age 66, born between 1943 and 1954) is 100% of the Primary Insurance Amount (PIA) at age 66, and 8% additional for each year you wait to take benefits to age 70. I don't believe there is any benefit to waiting beyond age 70.

    The basic break-even calculation, without time-value-of-money or investment rates considered, just dollar-to-dollar, seems to be age 81 and 6 months old. Use $1,000 per month as age 66 PIA and $1,320 as age 70.

    At age 81 and 6 months, if you started at age 66, you would have received 198 months of payments at $1,000, or $198,000. If you wait to age 70 to start, by age 81 and 6 months you would have received 150 months of payments (48 months fewer) at $1,320 or $198,000 total.

    This analysis also does not include CPI increases, which do happen but have been non-existent to small lately.

    It's interesting, based on the above $1,000 per month PIA - at age 100, if you wait to age 70, you would have received $71,040 more. But it's only about 17% more than the total age 66 cumulative benefit at age 100 of $420,000 (again, without CPI).

    There are so many strategies to consider. You can file at age 66, and suspend your payment. Your wife can file on your record and receive about 50% of your PIA. You can then wait until age 70 and receive 132% of your PIA. Yadda, yadda, etc., etc.

    There are calculators on the SS website. www.ssa.gov

    Folks at the SS offices cannot give you advice on when to file.

    You can't rely on my calculations above, because they are merely examples.

    Danny Marbell, Jr., CPA, CFP
     
  13. ImpalaBob

    ImpalaBob Member

    Joined:
    Sep 17, 2008
    Messages:
    385
    I've got a SSI spreadsheet that gives me the following results with my numbers at 62, 66, and 70 per SS statement:

    If I take it at 62 and live past 77 I am loosing money. Living to 90 = $543,228
    If I take it at 66 and live past 81 I am loosing money. 90 = $621,000
    If I take it at 70 and live past 82 I am getting the most I can get. 90 = $688,464

    So ... how long you THINK you will live has a lot to do with your decision!!!
    My projections went out to age 90 and you can see the big difference.

    If I though I was not going to live past 77 I'd already be collecting!!!

    YES 8% per year is significant with todays low interest bank rates.
     
  14. cubancigar2000

    cubancigar2000 Well-Known Member

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    Location:
    Idaho
    I took mine in 2008 at age 65 just 6 months before I was eldgible for a full bvenefit. It only cost me $32 a month so I get $1977 per month.
     
  15. David McMillen

    David McMillen Well-Known Member

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    1,008
    Mr. Marbell has the correct calculation.

    David McMillen
     
  16. PULL PULL

    PULL PULL Member

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    Location:
    Indiana
    I hate to rain on your guys parade. I have a 401k that I put money into every week. 20% that I never get to spend trapshooting. I"ve been doing this for 23 years. I won't be at full social security retirement age for 10 more years.I have told my wife that on my 65th birthday. I am done. I would like to get out at 62. But hate giving my earned social security back to the government. I have got up at 4am for 23 years. Worked almost all the overtime that they offer. I am sure most guys here are burnt out from working. You will never have to much money saved for retirement.But you never know when your at your last trapshoot. I remind myself of that everytime I take to the line. Good score or bad, I always smile.So get out when your ready.As early as you can afford. It's A big decision. Remember, you may end up trapshooting in heaven sooner than you want....
     
  17. DB Bill

    DB Bill Active Member

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    How do you get $1977 a month from Social Security?
     
  18. no5shooter

    no5shooter Member

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    Jan 29, 1998
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    DB Bill, I don't think cubancigar needs to defend his statement. I started collecting at 66 and I get more than that - I made more than average, paid in more than average, and take out more than average. It's pretty simple.
     
  19. dmarbell

    dmarbell Active Member

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    Aug 26, 2006
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    DB Bill,

    From the www.ssa.gov web site.

    Danny

    What is the maximum monthly Social Security retirement benefit?

    --------------------------------------------------------------------------------

    The maximum benefit depends on the age you retire. For example, if you retire at your full retirement age in 2013, your maximum benefit would be $2,533. But if you retire at age 62 in 2013, your maximum benefit would be $1,923. If you retire at age 70 in 2013, your maximum benefit would be $3,350.
     
  20. ken1okie

    ken1okie Active Member

    Joined:
    Dec 18, 2009
    Messages:
    779
    Location:
    Oklahoma
    Pull Pull,

    I'm couldn't agree more with what you've said. I've maxed out my 401K contributions for the past few years and also took the catch up provision too.
    I wanted to bail at 62 (next year) but will probably go till 67......Right now...I'm shooting as much as I can while I can..and having fun doing it!! I've had too many friends checkout within 6 months of retiring never getting to realize there plans.

    Ken
     
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