SS options

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
jwtietz
Posts: 93
Joined: Wed Jul 02, 2008 3:00 pm

SS options

Post by jwtietz »

After reading all the SS topics I feel bad posting another but I wanted a second opinion if I have it right or at least close. Our finances are good. Both get DB Plans which cover more than our needs, Plenty of money in vanguard that we have not needed to use yet, and are both healthy. Life is good. Wife is just turning 66 and was thinking of taking SS At the start of next year. Her benefit at FRA is 2200. I am 63, and at FRA I would get 2350 but at 70 would get 3k. Is the best move to let her take benefits now, then when I reach 66 can I file for spousal benefits? putting off my benefits off until 70. If I die first then she can switch over to my SS. My only issues now are the IRA conversions to roths and taxes I am paying on them. Thanks for any insights, and sorry for beating the dead horse.
spencer99
Posts: 486
Joined: Thu Apr 01, 2010 5:17 pm

Re: SS options

Post by spencer99 »

JW,

I'm afraid I don't have any wisdom to offer on this issue or information to add to recent threads. I do have a follow-up for you, though, because your circumstances mirror mine in some ways (with the major distinction that I'm single).

Have you thought about the implications of a delaying strategy causing potentially too much income to hit at age 70?

For some of us:

1) Pension meets most (all) needs
2) Delaying SS is attractive for safety/insurance (understanding it's not a wealth optimizing strategy for singles)
3) Little need to draw on investments, but RMDs hit at 70

How do you see this playing out in your decisions?

Best,

S
User avatar
TomatoTomahto
Posts: 17100
Joined: Mon Apr 11, 2011 1:48 pm

Re: SS options

Post by TomatoTomahto »

JW,

Personally, I found the shortest path to be spending the $40 it costs to have http://www.maximizemysocialsecurity.com figure it out. You can download your actual earnings histories, and it will maximize the result for you and give you an overly long report for printing.
I get the FI part but not the RE part of FIRE.
dbr
Posts: 46137
Joined: Sun Mar 04, 2007 8:50 am

Re: SS options

Post by dbr »

TomatoTomahto wrote:JW,

Personally, I found the shortest path to be spending the $40 it costs to have http://www.maximizemysocialsecurity.com figure it out. You can download your actual earnings histories, and it will maximize the result for you and give you an overly long report for printing.
I used that site as well to confirm my SS strategy.
User avatar
TomatoTomahto
Posts: 17100
Joined: Mon Apr 11, 2011 1:48 pm

Re: SS options

Post by TomatoTomahto »

dbr wrote:
TomatoTomahto wrote:JW,

Personally, I found the shortest path to be spending the $40 it costs to have http://www.maximizemysocialsecurity.com figure it out. You can download your actual earnings histories, and it will maximize the result for you and give you an overly long report for printing.
I used that site as well to confirm my SS strategy.
I found one item in my report to be confusing, so I asked for help, and was surprised that Dr. Kotlikoff personally responded. I've spent $40 less well in other ways :D , although, like you, I was mostly confirming what I already believed to be the right thing to do.
I get the FI part but not the RE part of FIRE.
SGM
Posts: 3341
Joined: Wed Mar 23, 2011 4:46 am

Re: SS options

Post by SGM »

You can get a free estimate at AARP. It is a good starting point.

One option is your wife files and suspends at 69 and you collect half her FRA amount or 1100.
Then you both file for your own at age 70 and she gets around 2900 and you get around 3100 monthly. That would be 72000 a year from SS. These numbers can be made more accurate by going to the SS website. In the meantime if you retire at an earlier age you could use the lower income to convert some tIRAs into Roth.
"Let us endeavor, so to live, that when we die, even the undertaker will be sorry." Mark Twain
lucky3
Posts: 205
Joined: Thu Apr 12, 2012 9:21 am

Re: SS options

Post by lucky3 »

My experience with SS....similar age difference as you and your wife.

When I reached FRA at 66 I did a "file and suspend" which caused my wife's SS to go up because taking her spousal benefit was greater than her own SS based on her work history. When I turn 70 I'll start collecting...plan to work full time until then.

Lucky3
Topic Author
jwtietz
Posts: 93
Joined: Wed Jul 02, 2008 3:00 pm

Re: SS options

Post by jwtietz »

Thanks for the link to the Max ss site. I will give the a go. Also I have thought about
Have you thought about the implications of a delaying strategy causing potentially too much income to hit at age 70?
I retired 3yrs ago and have been converting iras to the roths since. I don't think I can get ahead of the gains, I have tried to stay below the gross income of 217k with the conversions but it is difficult. I pay more in tax now than when my wife and I worked. In looking ahead at RMD it will be worse if I don't take actions now. This is the 4th year and there is still 1100k more to take out. I don't think I will make it by the time I am 70.5. Looking at it this way it doesn't look good but looking at it from the other side of not having enough is worse. The consequences of being too good a saver. Thanks all for the responses. john
User avatar
TomatoTomahto
Posts: 17100
Joined: Mon Apr 11, 2011 1:48 pm

Re: SS options

Post by TomatoTomahto »

John, that's a nice problem to have. My father, who didn't come from money, would tell me in April that he had paid more in taxes this year than he made gross 5 years ago. His take was always that it was a nice problem to have. I expect a similar problem a few years from now :D
I get the FI part but not the RE part of FIRE.
Post Reply