Thank you - We liked all of our time at Yellowstone as well.Parkinglotracer wrote: ↑Mon Nov 20, 2023 2:13 pmYellowstone was our favorite part. Beautiful. Spring Lake Lodge was gorgeous too.smitcat wrote: ↑Mon Nov 20, 2023 7:43 amHave you, or did you do any analysis on your total portfolio plan which led you to believe that taking it at 62 was an optimum plan?Parkinglotracer wrote: ↑Mon Nov 20, 2023 7:33 amWife and I took SS at age 62 this Jan; We don’t need it; we have a few pensions (military, corporate, school) and BH savings. We are in very good health, but both of us are cancer survivors. We have slightly above average life expectancies. We get 42K a year from SS. Wife is low earner. When I die my DW gets 32K a year. If she dies first I get 27K a year.
Having the money come in monthly frees us up to blow it. (Yes mental accounting). And we do. We took a 16 day national park tour out west to celebrate in August - stayed in Yellowstone lodge one night - lived like the farmer left the gate open. We are pretty frugal and much more likely to spend the money deposited in our checking account monthly than to withdraw from savings (the problem of spending savings is real)
If we live as long as we might live we are giving up some coin (100K?) but I contend our lives are better “spent” taking it early. And who knows what the future of the program will be. I was at a dinner with a former OMB director last month and he said to me something has to give in the future entitlement battle.
In the fighter pilot world we used to say about weapons or cigars or whatever you possess - “smoke ‘em if you got ‘em.” We need to start spending or our kids will buy stuff we should have bought with our money.
DId this analysis take into consderation these items:
- all potential results adjusted for tax and inflation
- ACA benefits
- various spousal age(s) of demise
- roth conversions
- inheritance goals
- charitable goals
Please share which one(s) had led the optimization for taking it at 62.
PS - we were at Yellowstone in Sept. and at Spring Lake lodge.
My discussion above pretty much details my rational for taking it at 62. We ran a few scenarios on Mike Piper’s great website opensocialsecurity.com; Mike’s tool said in an optimum case we could be giving up just short of 100K by taking it early if we live as long as average peeps do and if they don’t means test it or cut benefits, etc. We also ran a few scenarios on ORP-I few years ago. ORP-I recommended very large Roth Conversions into high tax brackets I think are excessive. We are currently doing some smaller Roth conversions. I have an mba and an engineering degree but am not overly analytical in my decision making. As Mr Bogie said in his book - we have “Enough”. We have a good COLA’d Mil pension, saved enough, and we think our quality of life in our 60’s, go go years, and slow go years will be best by having the $ deposited monthly in our checking / taking it early. I realize not digging into pralana gold and estimating future inflation, future tax rates, and future equity returns to develop a detailed plan on who may live long enough to die with the most they possibly can may drive some BH’ers crazy. Not me.
I think you may already know this but just in case while opensocialsecurity will optimzie SS election alone it has no way to assess a combination anything like yours. Extended IORP had a number of issues with Roth conversions even before it became unsupported around 2019 - while there were some ways to partially work around this they still yielded results that were less than optimal.
Thank you again