Investment Return From Delaying Social Security

[JourneyOfLife]

An interesting way to look at the potential advantage of delaying SS payments.


Investment Return From Delaying Social Security? Sure Beats TIPS - Forbes (http://www.forbes.com/sites/wadepfau/2014/04/01/delaying-social-security-what-an-investment/?ss=personalfinance)

[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

[manaboutown]

One also has to believe they will continue to receive SS! I refused to bet that I will so I took it the month I qualified, for me 65 years, 10 months.

[Happy Snowbird]

Another option to consider is drawing SS against your spouse ( must be receiving SS) at age 66 then draw your own SS at 70.

[JourneyOfLife]

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

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

[Nightengale212]

New here and in the planning stages of retiring at age 64 and hopefully moving the the Villages soon after.

I agree, everyone is in a different situation and it takes great planning to make these important decisions about retirement. I am a female and was widowed suddenly at age 44. My husband and I did not have much liquid funds at the time he died, but fortunately the house was paid off, I got a small lump sum life insurance benefit, and had just started a new nursing job at a local VA Hospital.

Two years after my husband died met and have been with current partner for the last 11 years who is now 62 and I 57. We opted not to marry until after I turn 60 so that I can initially collect on my late husband's SS. I will start drawing off that at age 64 at which age I will have a decent 20 year government pension and a good amount of $$ built up in my TSP. When I turn 68 I will transition to my own SS which will add about $1400 to my monthly income. Things might be tight for a couple of years before I transition to my SS, but the Villages home which we plan to purchase in cash will be about $100,000 less than I will likely get from the purchase of my home which should not be on the market long as it is in a desirable town in a desirable development and I will be pricing it very fair.

Although I have a few years to go, I am looking forward to Florida's snowless winters and getting rid of my $7,000 and rising annual property tax :)