MAMalody Posted February 21, 2014 Report Share Posted February 21, 2014 If I knew how to do smiley faces or ballons, I would. Have a great day! Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 21, 2014 Report Share Posted February 21, 2014 Happy Birthday! I hope you enjoyed your day. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 21, 2014 Report Share Posted February 21, 2014 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2014 Report Share Posted February 21, 2014 Thanks for the birthday wishes. This is the big 66th, and now it's time to begin drawing some of that Social Security. So thanks to all of you who are helping fund a small part of my retirement benefit. (Although at the rate I'm still working, I'm only costing you a part of it. According to my figures, I'm continuing to pay in SocSec taxes about 40% of what I'm receiving in benefits.)BTW, if anyone is approaching retirement or knows someone who is, be sure to mention that they should look into the "Free Spousal Benefit". That, coupled with "File and Suspend", can be a great tool for increasing long-term retirement income. In certain situations, it is almost a no-brainer, but retirement planners and even Social Security consultants often misunderstand it or miss it altogether. 4 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 21, 2014 Report Share Posted February 21, 2014 I know. I turned 66 with a younger husband. I just haven't take the time to go over to the SSA office to work it out. (I'm so afraid they won't get the Suspend part right.) I'll then wait for 70 to restart drawing, and hubby will wait until 66 to draw on his own but have mine to draw on for a few years. Can you do it online? How long before you see something in writing or definitive that it's suspended? Happy Birthday, John! Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2014 Report Share Posted February 21, 2014 I think it has to be done by calling Social Security Admin. My situation is somewhat similar to yours. But if your husband begins drawing Free Spousal Benefit before he reaches age 66, there is a partially ofsetting reduction of some sort in the long run. You will definitely want to check out the financial implications of that. As I understand it, the strategy is age-neutral and the FSB is truly free only if the spouse applying for the Free Spousal Benefit has also reached full retirement age. In my case, my wife is already receiving benefits at full retirement age. So I will receive my Age-66 Full-Retirement benefit for the next 5 months. Then (assuming I don't develop any life-shortening health issues during this time), I will suspend my own filing and apply for the spousal benefit. A little quirk here is that I have to repay all that I have received in benefits during the 5 months and then wait for them to send me a make-up check for the lower benefit, but that's basically just a timing issue. That puts me back in the pool for the increasing benefit between age 66 and 70 (about an 8% return on invested funds, by most estimates). My monthly benefit decreases by $400 during this time, but for each year I wait, the ultimate monthly benefit increase by over $100/month. So as I see it, this distills down to the equivalent of paying $4,800 for an annuity which will pay me $100/month for as long as I live. (It's actually better than that, because I'd have to earn over $7,000 to have enough after-tax money to fund the $4,800 annuity) If I die within 4 years, Social Security Admin wins because I left money on the table. If I live beyond 4 yrs, I win. I'm planning to win. If you and your husband do this, I think the most important thing is to be sure the person you speak with at SSA fully understands the strategy. Keep in mind that the Free Spousal Benefit can only be claimed for a maximum of 6 months back - two people I spoke with at SSA didn't know that. Here's a link to a sort discussion on this, but it isn't comprehensive. http://www.socialsecuritychoices.com/info/freespousal.php 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 21, 2014 Report Share Posted February 21, 2014 Our situation is me 66 file and suspend. Hubby 62 draw on my account. Me at 70 draw on my account with increased benefits; hubby at 66 draw on his account with full benefits. He'd worked this out with a financial advisor. Neither of us has done the legwork to check it with SSA and actually do it. He's a retired teacher and I'm busy, so this will be his project now. Also studied the draw and then pay back strategy in a CE course one time. My grandmother lived to be 103, so I hope to collect for a long time. On the other hand, my mother died at 67. But, daddy was nearly 80 as was my grandfather. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2014 Report Share Posted February 21, 2014 I never paid much attention to Social Security strategies until the past 4-5 years, as I began to approach time to make decisions. Any time a client would ask for advice, I'd tell them they need to speak with a financial advisor or do their own research. I've slowly come to the realization that most people don't bother - they just listen to whomever happens to cross their path. And I've come to realize that MANY people make major mistakes when it comes time to begin receiving benefits. It's good you and your husband are investigating it yourselves. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 21, 2014 Report Share Posted February 21, 2014 If we knew when we are going to die, then it's a calculation with a "right" answer. But without that piece of information, it's a choice; and I hate to make decisions without full information -- which is most of life. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2014 Report Share Posted February 21, 2014 I don't need to know WHEN I'm going to die.I'd like to know WHERE I'm going to die.Then I'd just make sure I never go there... 2 Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2014 Report Share Posted February 21, 2014 The interesting thing about the "Free Spousal Benefit" is that it truly is free. Everything else about delayed benefits is actuarily sound right down to the month. But the Free Spousal Benefit violates all those rules. I really don't understand the logic behind it, but it's there for the taking. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 21, 2014 Report Share Posted February 21, 2014 The first few years of moving to CT, my then-husband /or I had auto accidents every 15 January. After about three years or so, I refused to leave the house on 16 January. I had an auto accident on 16 July! Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 22, 2014 Report Share Posted February 22, 2014 Happy Birthday JohnH. Quote Link to comment Share on other sites More sharing options...
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