Quote:
Originally Posted by zcaveman
I guess if you can believe that you will live pass age 85 you have an advantage. That was not my thinking. Anything past 80 is a gift. Check the obits.
Some of us also figured that the interest rates on income would be in the 5-7% range - not in the .2% range.
To each his own in his planning for the unknown.
Z
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Actually there are risks on both sides of the longevity issue.
IMO, one can make a sound case for their decision if they really understand their situation and have planned well.
But most people, sadly, do not understand their own situation. Many completely overlook other potential financial hazards that they might encounter in the future, that could jeopardize their financial well being... and consequently their income to support a minimally desirable lifestyle!
Nevertheless... the article was about a common alternative approach taken by many that take SS early.
They think they will invest their saved assets (e.g., the early payments) and turn out better off. IMO, a common flaw in the analysis, is that they often plan to invest in assets that are much much more risky.... apples to oranges comparison.
The article uses TIPS as a comparison. SS and Tips are guaranteed by the same entity and both are inflation protected... IOW considered low risk for the purpose identified... generate Income!
IMO, a goal of that sort of analysis might be to get a little closer to an "apples to apples" comparison.
Of course for individuals YMMV... along with specific approaches