Another What would you do Question?

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MoBuckChaser

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No cost of living or yearly increases after you start drawing?
 
Does the total go up enough each year to where it makes a noticeable difference to leave it for a year or 2 and then take it? If my math is correct you start at 58% and go up 6% per year, in 2 years you would be up to 70%, which would put you at $2100 per month and you would still collect for 5 years extra? Not sure if that made sense or would be feasible, but I like the sound of $2+G's a month, as opposed to $1740.
 
Same question as Bueller is there possible COLA?

On simple $ totals without adjusting for inflation or anything if you live to age 75 here are the totals if I did my math right.

55 - 438,480
56 - 468,000
57 - 478,800
58 - 492,480
59 - 501,840
60 - 506,800
61 - 507,600
62 - 504,000
 
If you live until 80, then taking early you will draw $522,000 total. If you wait until 62 and live till 80 you will draw $648,000 total. Longer you live the bigger the difference. But here is the big question; just how well are you going to be able to use that money when you are 80+? I'm young so I may have a skewed perspective but I've always thought you should be retired while in your 20's - 30's and work when you get older.
 
If you live until 80, then taking early you will draw $522,000 total. If you wait until 62 and live till 80 you will draw $648,000 total. Longer you live the bigger the difference. But here is the big question; just how well are you going to be able to use that money when you are 80+? I'm young so I may have a skewed perspective but I've always thought you should be retired while in your 20's - 30's and work when you get older.

My uncle retired at 58 and he is now 86 and he frequently says that. I agree about what good what the money be if you can't use it because you are too old.

Summed up all of my numbers assuming I understand the pension right. Let me know if it looks like I missed something there. My numbers have 1 more year than Catscratch since they assume die right before you turn the next year older. So I guess it should say "die while XX" instead of "die at XX"


Pension.JPG

Another factor with pensions is the financial health of the funds. I found this online and it looks like it may be your pension fund since another pdf showed the same 6% adjustments over 7 years. http://www.dol.gov/ebsa/pdf/e-notice091313025.pdf - that is for 2013 and it looks like they didn't file the "endangered" notice in 2014 so maybe the investments recovered enough to be funded.


Make sure you have the beneficiary paperwork filed correctly and get copies of it, I have heard of that getting screwed up. Then the barracuda would at least be able to spend the survivor benefits on the 25 year old boy friend, even if she doesn't have the cash you weren't able to spend!
 
Maybe you should ask yourself can you afford the 1740 a month now.
 
I'd go for it now and have fun with it. The older you get you the less you'll enjoy it. But you could buy a lot more depends once your older.
 
Will you have other income sources during retirement other than SS (e.g., IRAs)? Another thing to consider is income tax, as that will also affect the computation, as your tax bracket may be lower at 62. Good luck with your decision!
 
I probably wouldn't wait until 62 to start drawing but I would wait a couple years. By doing so you will not only gross more (life expectancy is pretty high nowadays), you will also have a higher monthly payment rolling in during those years when you are truly "retired" and on a fixed income while inflation keeps rising.
 
I had almost the same decision a few years ago. I waited until I was 57 3/4 years old. Just remember that you can't start to collect SS until 62. I am 60 now and do not regret retiring early. I get to do things I never had time for while I can still do them. If you have your financials in order and can afford to retire now I say go for it.
 
Once you start drawing social security does that money deduct from your monthly pension money? If you will get social security in top of pension I say draw it now an put it to work. You don't need it. You can do what you do with it an come out ahead in the long haul.. Also will your wife continue to get that money after you die? Somthing to think about. Allot of pensions have 2 amounts. One amount you have no beneficiary which is higher an the other option you take less monthly but your spouse continues to receive the benefits until her death. Since your wife is younger you may want to wait? Lots to think about mo!
 
No she will not. She would only get the lump some that is in the pension if I do not draw.
Well then you may have to talk to Duffy about a life ins policy;) lol JK
 
YOU happen to be an investor, a wheeler and dealer. YOU could make use of that money now buying investments. YOU would likely make more money of of those investments than from waiting for the pension to go up. YOU seem to enjoy the buying, owning, selling process. For YOU, I suggest taking the pension money as early as possible. For most other folks that would not be my suggestion.
 
Here is the ?s you need to answer.

Do I need the money now?
Will I need the higher income in a few years?
How good is my health?
How was the health of your father, grandfather, etcc.. As they aged?
How much do I have saved up for emergencies, now and as I age?
 
Yes SS will be over and above. That is a good reason to take it early. The other reason would be because our Pension fund was on the endangered list for a while after 2008. I want to get on the draw list so I get me money before something major could happen.

That seems like a very good reason to get on the draw list.

I'm 60 in two months and it is harder to do y job every day.

Mobuck- do you teach any classes???
 
Maybe years ago I would say wait.

Everyones situation is different, Today, if it were me, I would start taking it as soon as I could. When someone else is in control of the money these days it might not be around long. At least if its in your pocket you know you have it.

Forget about SS. We've got a zillion little South American kids to take care of.
 
I would draw it out and start enjoying it then......... sounds like you could drop over dead any day now!:D
 
This is much the same question posed by folks about when to start drawing their Social Security checks. The same answer applies: Nobody knows the future or when your gonna die. I retired early, took my SS at 62, got a small pension from an old job I had, and a good check from the biz and property I sold. I don't know where I could find the time to work anymore.....and time fly's by pretty fast - especially as you get older.

To me, the problem with waiting, is that you may never enjoy .o1 cent if you wait....and may never realize retirement living if you work till you drop. That pension fund also could run into another disaster if the wheels fall off our economy (again).

A bird in the hand, is worth two in the bush. As has been said....for YOU, I think you should take the money early and keep investing as you have learned. You (and Mr Haney on Green Acres) will always figure out how to turn a buck into a buck and a half. ;)
 
Take it early, you have the farm income and more so it's play money!!
Plus, if Beckfarms hunts you down, you will at least got a paycheck or two (LOL)

You could roll the lump sum pension into an IRA correct, then buy another farm??I did with my small pension. Self Directed IRA in Iowa. It all depends on your pension agreement
 
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