It's Time For Medicare (whether I want it or not)

[Gale Hawkins]

"If I took all that money and invested it, I'd have a lot more now."
True that.
But then there are always people who get have life dump on them unexpectedly. My father-in-law broke his neck as a younger man and had SS, VA, and not much else, to carry him and his kids for the next 25 years. How about my son who died at 34. So far his widow and kids have pulled in well over $300,000 in SS with a few years left on the youngest one's eligibility. People figure those horrible things always happen to someone else.
You gotta have some sort of insurance.

Sorry about the lost of your son. Thankful Social Security was there to lessen the financial impact on his family.

Like I said the other day I am thankful I have to pay income tax on SS vs none being due. The name of it indicates it's social in nature and not an investment plan for one particular person. I hear complaining about school taxes with no kids. SS protection is good for society as a whole. Love that doesn't extend beyond myself is not even love at all.

 

[Gale Hawkins]

Why would you want to wait until you are 70 when
you can get SS at 66??? Looks like you get less at 70

https://www.investopedia.com/ask/answers/102814/what-maximum-i-can-receive-my-social-security-retirement-benefit.asp

Average Social Security Benefit by Age
Age	Average Monthly Benefit
66	$1,745.14
67	$1,719.23
68	$1,739.24
69	$1,736.43
70	$1,728.79
71	$1,751.26
72	$1,786.89
73	$1,792.45
74	$1,825.03
75	$1,793.63

willy

In my case it was a extra $7200 per year when I need it more then when I was working full time. It also enabled the wife to be able to draw $30,000 more by me waiting until I was 70. You have to look at the per case base to understand the answer to your question.

 

[Larry Caldwell]

This is from the SSA site: "more than $44,000, up to 85 percent of your benefits may be taxable."

That's the means testing Reagan added along with the SS surcharge to create a trust fund. Boomers spent 35 to 40 years paying extra taxes to fund our retirement. It looks like the Xers and Millennials are not willing to pony up for their own retirement, so they will have to do without.

 

[Larry Caldwell]

Nothing is new. I was saying even if ones SS is $50K/year, then 85% is taxed, Medicare is deducted and they're already in a high tax bracket the remaining SS is a pittance.

Fortunately, my state does not tax SS, and there is no sales tax, so SS is tax free. It helps.

 

[Gale Hawkins]

How Do Insurers Love Thee? Let Us Count the Medicare Advantage Pitch Mailings.

When I get off of the wife's health plan in the next few years hopefully I'm thinking about going just with the basic Part B especially if I am Rx Med free. I did not know part I was no cost to me but I only signed up at 70 last year so I missed 5 years of coverage there but that's okay.

 

[KennyG]

Why would you want to wait until you are 70 when
you can get SS at 66??? Looks like you get less at 70

https://www.investopedia.com/ask/answers/102814/what-maximum-i-can-receive-my-social-security-retirement-benefit.asp

Average Social Security Benefit by Age
Age	Average Monthly Benefit
66	$1,745.14
67	$1,719.23
68	$1,739.24
69	$1,736.43
70	$1,728.79
71	$1,751.26
72	$1,786.89
73	$1,792.45
74	$1,825.03
75	$1,793.63

willy

Those are averages people get, based on their earnings credits.The older a person is, the less likely they will have high credits. No matter who you are, you will individually get 32% more by waiting til 70.

 

[Fuddy1952]

No matter who you are, you will individually get 32% more by waiting til 70.
One thing to factor in is the money you didn't receive by not taking it early, along with predicted longevity. That part is hard to figure but guesstimate based on one's lifestyle, health, genetics. Of course unpredicted accidents and illness can affect anyone.

 

[Gale Hawkins]

No matter who you are, you will individually get 32% more by waiting til 70.
One thing to factor in is the money you didn't receive by not taking it early, along with predicted longevity. That part is hard to figure but guesstimate based on one's lifestyle, health, genetics. Of course unpredicted accidents and illness can affect anyone.

32% is based on FRA of 66 or 8% bonus per year of delay. One with FRA of 67 then 24% is max bonus.

Until the law is changed FRA is frozen at 67 like was frozen at 65 for eons.

Well there is a move to reduce Social Security payout it does not have to be directly in numbers because by jocking things like full retirement age will impact how much people can draw.

At one point I was very concerned that Social Security would be unstable many years in the future and there is still a big question mark there but for comfort I look at Europe and their more socialist system is still paying benefits and somehow the countries are not going into default so I think there's hope for USA.

Based on history the changes coming to Social Security will impact future recipients not the current.

 

[Gale Hawkins]

This should be of interest to a few people that are going to go the Medicare route at some point if not already.

https://khn.org/news/article/medicare-advantage-plans-senior-companions-profits/

 

[Gale Hawkins]

Retire AFTER 65: It's One of the Secrets to a Long Happy Life! | NewRetirement

Summary: having a reason to get up and stay up until bed time is positive for a long happy life.

 

[JDZ735M]

Summary: having a reason to get up and stay up until bed time is positive for a long happy life.

But being able to take a nap any time of the day you feel like it is pretty good too!

 

[Gale Hawkins]

But being able to take a nap any time of the day you feel like it is pretty good too!

Now I'm afraid to take a nap.

 

[JDZ735M]

Now I'm afraid to take a nap.

Work hard and enjoy naps!

 

[Gale Hawkins]

Work hard and enjoy naps!

Feeding and scooping poop for 8 mini horses hopefully will help insure that both happen.

I started taking the wife to and from work after she broke a hip 21 June 2019 so 5 times a week I am leaving the house twice each day depending on her schedule and repeating 8 hours later so I have to keep a schedule to make sure the other stuff in life gets done.

When we got home at midnight last night we sat in the car and did some retirement planning and looked our income projections after the death of either one of us.

We have retirement income that will stop or greatly decrease on the death of either one and some that will pass to the other. An awareness of the coming income drop for the survivor is key retirement planning.

 

[Gale Hawkins]

Prohibited Transactions and Investments in IRAs | White Coat Investor

This applies mainly to those with self directed retirement funds. Our retirement funds manager got out of the business so it's something I am drilling down on with the son he knows our details.

 

[Gale Hawkins]

Invest in Your "Cognitive Fitness" Now, Reduce Your Risk of Dementia Later

Another area for retirement planning.

 

[Bill Guenthner]

Retire AFTER 65: It's One of the Secrets to a Long Happy Life! | NewRetirement

Summary: having a reason to get up and stay up until bed time is positive for a long happy life.

I have more things I want to do than I can possibly get done in the time remaining. That will never be a problem.

 

[Gale Hawkins]

I am concerned cost of living increases in Social Security payments is not going to keep up with this situation illustrated in this video.

 

[Larry Caldwell]

Invest in Your "Cognitive Fitness" Now, Reduce Your Risk of Dementia Later

Another area for retirement planning.

The best way to prevent dementia is regular physical activity, or rather one of the big predictors of dementia is a sedentary lifestyle. As you age, if you don't stay active you will lose the ability to be active.

 

[Larry Caldwell]

I am concerned cost of living increases in Social Security payments is not going to keep up with this situation illustrated in this video.

Inflation is certainly a heavy tax on retired people. Most of us are out of the housing game because we bought years ago, and the cost of college is generally not relevant any more, but the galloping rise in the cost of medical care is a concern, and more recently the boost in food costs. SS goes halfway to keeping up with the COLAs, though normally runs a year and a half behind prices. The core CPI, of course, does not include food and fuel costs because they are supposed to be "volatile." I would be willing to bet that fuel costs settle about 20% higher than recent norm. We may not be commuting any more, but that road trip just got expensive. I'm not holding my breath for vehicle costs to come down either.

My pension is capped at a max 2% a year COLA, which is not going to do me any favors with inflation running north of 7%. If that keeps up for just 5 years, my pension income will be cut over 25%.

With the Fed finally raising interest rates, bond funds are going to lose money steadily. Stocks will probably slide too, as money investments become more attractive.

On the side of long term planning, the IRS just released new lifespan projections for RMDs that will let us stretch our 401k a few more years.