Retirement Planning - Lessons Learned

[ultrarunner]

Dad never retired even with chemo, dialysis, radiation and passed at 73 not working the last 3 weeks.

He fully intended not to collect knowing it was a benefit to mom and it continues to this day.

 

[California]

I'm an actuary and did the math for my mom who retired at 57 with a full pension and 401k, but was unsure what to do about claiming SS. She would have to live to 83, at that point the benefit of waiting past 62 was better. So there is a 21 year break even point. Then it works out to around 8% benefit per year delayed.

I told her to claim it at 62 and live your best retired life. Waiting till your 83 to to live your best life is nonsense.

My dad on the other hand is a stubborn mule and waited until 69. His reasoning is, getting a guaranteed 8% return for 3 years (his FRA is 66) is better than gambling it on the market.

Everybody's circumstances are different and for many, engaging a specialist for specific advice when to file for SS is worthwhile. After all, you will live with the consequences of your choice for the rest of your life.

I filed at 67 and my wife filed, as I recall as my dependent, at that time. Then she deferred filing for herself until her 70. We had calculated all scenarios and this maximized our benefits long term - all based on the assumption of living at least into our 80's. This seemed like a fair gamble since other savings would keep the survivor comfortable if one of us didn't live that long, and the government's guaranteed return was a better gamble long term than guessing the future of the economy. All our ancestors had lived to late 80's or beyond. Dad to 88 after both tuberculosis and polio, Mom to 98, her older sister to 107. Wife's parents similar.

Again, pay a pro for advice if you don't have all the information to find the optimum.

 

[MoKelly]

I'm an actuary and did the math for my mom who retired at 57 with a full pension and 401k, but was unsure what to do about claiming SS. She would have to live to 83, at that point the benefit of waiting past 62 was better. So there is a 21 year break even point. Then it works out to around 8% benefit per year delayed.

I told her to claim it at 62 and live your best retired life. Waiting till your 83 to to live your best life is nonsense.

My dad on the other hand is a stubborn mule and waited until 69. His reasoning is, getting a guaranteed 8% return for 3 years (his FRA is 66) is better than gambling it on the market.

How can you tell the difference between an accountant and an actuary?

- an accountant looks at your shoes when talking to you.

- an actuary looks at his shoes when talking to you.

MoKelly

 

[California]

How can you tell the difference between an accountant and an actuary?

- an accountant looks at your shoes when talking to you.

- an actuary looks at his shoes when talking to you.

MoKelly

Now do auditors!





My favorite line was
"I'm from the government. I'm here to help you".

 

[MoKelly]

Now do auditors!





My favorite line was
"I'm from the government. I'm here to help you".

I was an auditor out of school for 5 years and then an accountant for 30 years.

My sister is an actuary.

Thanksgiving dinners are one wild time at our house!!!

MoKelly

 

[ponytug]

I was an auditor out of school for 5 years and then an accountant for 30 years.

My sister is an actuary.

Thanksgiving dinners are one wild time at our house!!!

MoKelly

I would say that the odds from that post is that your family gatherings are sure to add up to great time.

All the best,

Peter, who trained as neither...

 

[MoKelly]

I would say that the odds from that post is that your family gatherings are sure to add up to great time.

All the best,

Peter, who trained as neither...

“Add up” to a great time.

Good one!

MoKelly

 

[California]

I was an auditor out of school for 5 years and then an accountant for 30 years.

My sister is an actuary.

Thanksgiving dinners are one wild time at our house!!!

Probably at least as entertaining as watching a table of auditor-trainees, each trying to calculate how to split a big restaurant bill on their HP-12C's.

 

[MoKelly]

each trying to calculate how to split a big restaurant bill on their HP-12C's.

OMG. I still use an HP12c.

Those batteries last forever.

MoKelly

 

[kenmac]

I didn't wait. I took my money at 62. I'm now 63. I may not make to 67 which should be my full retirement age.. I'm ok with the amount I get. Of course we could all get more if our tax dollars weren't going to other countries for crazy things. But that has gone on for so long, I don't see anything changing for those of us on SS.. I think I got a 1.3% increase the first of the year.
Sad part is, we keep electing people that look out for themselves, and other countries,(the people) and we get the scraps !