Honey, I'm home. . .for good!

[Bird]

"can't apply" (I just went back and read it again)

never mind what I said

Yeah, but anyway I agree with what you said. Unfortunately, I'll never be able to draw any social security because of my other pension, but my wife started drawing her little bit of social security when she turned 62. She'll be eligible for Medicare the first of December, but they already sent her Medicare ID card this week.

Since Part B of Medicare is optional, I wondered how they handled that; thought she might have to go to the social security office in person again, but the ID card came and shows both Part A and Part B go into effect on December 1, 2008. The instructions say to just start using it the first of December if you want both Part A and Part B. And then in nice big print it says if you do NOT want Part B to sign the form and return it BEFORE the effective date. Of course instead of saying "Part B", it says "Medical Insurance" and that they'll send a new card if you decline the "Medical Insurance" since you're still entitled to Hospital Insurance (Part A).

Of course you pay for Part B and the cost goes up every year. This year it's $96.40 a month (even more if your income is high enough, but we don't have to worry about that. )

 

[jinman]

Now... something to contemplate

I think Jim and someone else has said they will wait 2/3 years before putting in for social security payments? (or was that before you're qualifed to receive payments? I actually missed that part and now as I'm typing, can't see it)

If you are eligable and WAITING... then I urge you to do the math and reconsider....

...There's certainly some pros/cons of waiting for the larger amounts we're just a bit predisposed on the side of you can't go wrong if YOU are the one who's holding the money in your hands, rather than the government.

Richard, I can apply for reduced SS payments at age 62 + 1 month. My full benefit kicks in at age 66. The difference is $500 per month. Of course, if I let the government waste or lose my money until I'm 70, then the difference is about $1150 per month (not gonna happen). If my SS payment is $1500 per month at age 62, then I will have collected $72,000 by age 66. So, I'd be giving up $72,000 to wait and draw $500 more per month. Somehow, that math doesn't add up in my book.

The only rub at taking SS at age 62 is that you can only make $13,560 per year without reducing your SS payment. For every $2 you make above that amount, they reduce your benefit by $1. In the year you turn 66 (2015 for me) I can earn up to $36,120 before any deductions are taken. At age 66, no reduction in SS benefits is taken no matter how much you make.

So my advice to anyone due to retire in a few years is to throw all the money you can into a 401k or IRA. Take your retirement at age 62 and live off your savings for a few years while doing a little work and enjoying your life before you get too old or feeble to do the things you want to do. If your health holds up, you will most likely also be positioned to still work at age 66 after a 4-year vacation. Why not? It's the reward you deserve for all those years of dedication to a job instead of yourself.

 

[mjarrels]

Jim, I saw something the other day that SS will pay a little extra for military folks that served between X number of years. BUT, SS office will not tell you about the new program... YOU have to ask! Hope you have all your DD214's.

mark

 

[EastTexFrank]

Richard, I can apply for reduced SS payments at age 62 + 1 month. My full benefit kicks in at age 66. The difference is $500 per month. Of course, if I let the government waste or lose my money until I'm 70, then the difference is about $1150 per month (not gonna happen). If my SS payment is $1500 per month at age 62, then I will have collected $72,000 by age 66. So, I'd be giving up $72,000 to wait and draw $500 more per month. Somehow, that math doesn't add up in my book.

The only rub at taking SS at age 62 is that you can only make $13,560 per year without reducing your SS payment. For every $2 you make above that amount, they reduce your benefit by $1. In the year you turn 66 (2015 for me) I can earn up to $36,120 before any deductions are taken. At age 66, no reduction in SS benefits is taken no matter how much you make.

So my advice to anyone due to retire in a few years is to throw all the money you can into a 401k or IRA. Take your retirement at age 62 and live off your savings for a few years while doing a little work and enjoying your life before you get too old or feeble to do the things you want to do. If your health holds up, you will most likely also be positioned to still work at age 66 after a 4-year vacation. Why not? It's the reward you deserve for all those years of dedication to a job instead of yourself.

My thinking exactly. I'll be 62 next year and then the government will start paying me.

I actually officially retired over 8 years ago but I consulted for 3-5 months a year for the next 4 years. It kinda eased me into retirement. The last 4 years I have been a home bird and love every minute of it. I have no intentions of working full time for salary again. I don't have the time. I'd much rather work full time for nothing around the house and the farm, not to mention all the volunteer projects my wife gets me involved in. It's wonderful to sit on the deck in the morning with the dogs and drink my coffee and decide what I'm going to do that day or .... say "to heck with it" and just go fishing. Life is good.

 

[tinkertoys]

My thinking exactly. . It's wonderful to sit on the deck in the morning with the dogs and drink my coffee and decide what I'm going to do that day or .... say "to heck with it" and just go fishing. Life is good.

YEA and I am loving every minute of it.

 

[GreenWannabe]

Jim, sorry I missed this until now. Congrats on the retirement!!

I beat you by a couple of months - retired on 4/30/08, at 65 years 10 months. I had planned to work to age 73 in order to pay off my RV, but then I would be 73 years old with an 18 year old RV - didn't see the profit in that! I've now sold the RV, and once I can get my current doctors' appointments and tratments out of the way, plan to travel quite a bit. I would really like to meet a lot of the folks on the forums as my travels take me their way. As for the job, I miss it - - NOT!!!

Have a happy

Fred

 

[jinman]

Jim, sorry I missed this until now. Congrats on the retirement!!

I beat you by a couple of months - retired on 4/30/08, at 65 years 10 months. I had planned to work to age 73 in order to pay off my RV, but then I would be 73 years old with an 18 year old RV - didn't see the profit in that! I've now sold the RV, and once I can get my current doctors' appointments and tratments out of the way, plan to travel quite a bit. I would really like to meet a lot of the folks on the forums as my travels take me their way. As for the job, I miss it - - NOT!!!

Have a happy

Fred

Fred, that sounds like a great plan. If you are down this way, look up some of us TX TBNers. We'll compare aches and pains while tossing down a couple of cool ones.

 

[ronjhall]

Jim, sorry I missed this until now. Congrats on the retirement!!

I beat you by a couple of months - retired on 4/30/08, at 65 years 10 months. I had planned to work to age 73 in order to pay off my RV, but then I would be 73 years old with an 18 year old RV - didn't see the profit in that! I've now sold the RV, and once I can get my current doctors' appointments and tratments out of the way, plan to travel quite a bit. I would really like to meet a lot of the folks on the forums as my travels take me their way. As for the job, I miss it - - NOT!!!

Have a happy

Fred

Like Jim I will make the same offer. We have hookups for a RV if you decide to get another one. It has been great weather up here this summer. Guess I better mention my tractor is orange. But lawn mower is green.

 

[mjarrels]

Jim, From one retired Navy guy to another... Want to see time fly... Toss that alarm clock out the window...

mark

 

[rox]

Jinman,
You might try doing what I do now. I'm not exactly retired but living a completely different life. Try taking off your watch. Jsut take it off and put it in the bedside table and not wear it. Give yourself a time limit like say 2 weeks and don't wear your watch. Just try it. At first it wil be kind of nerve raking becuse you are used to knowing the time and keeping yourself to a schedule. It is really nice not to wear a watch, if you wnat to know the time you can see the clocks in the house. Outside I get a pretty good idea of the time by the sun. Not wearing a watch changes your outlook. When you instictively look at your writst to know the time and you are not wearing one you kind of pull back and say, "oh yeah I guess it really doesn't matter that much what time it is" I never wear a watch anymore. There is a clock in the car and clocks in our home so for keeping on track I can go look at them. But not having a clock on my person has really changed me and for the better. Give it a try.