Jetjok

Kronan,

That's some good sh!t.

Thanks. You learn something new here every day. I'm waiting until I'm 66 or 67 to file for social security. In the meantime I'll just suffer through. I'm getting used to eating dog food. If I close my eyes, it tastes exactly like some of the catering, but I do have to be careful or I'll cut myself on the cans rim.

JJ

KnightFlyer

for 2009:

IRS Announces Pension Plan Limitations for 2009

W0XOFF

Based upon the individual, that could be a big mistake. Did the basic math a while back about starting to collect at 62 vs 66 - and it made more sense to start taking a lesser (not that much) amount then, rather than wait until 66. The math said I would have to live to about 74-75 to see any benefit by waiting later . .and THAT is not taking into account the present day value of the dollar, versus inflation. Another consideration was . .will there even BE any $$ in the SS system when I do turn 66 ? !

The individual needs to look at 'family history' -IE: 'longevity', and personal medical history -and roll the dice about how many years beyond 74 do you think you you might be around to collect if you wait until 66? How many over 75, former 'back side of the clock' freighter dogs are there? I don't know.

THEN, like KRONAN, above, I stumbled upon this:Paying Back Social Security: Does It Make Sense?

. . and formulated the following plan: If you get to age 70, with good health and no 'issues' and 'feel' like you can stick it out to the next milestone (and EVEN if you can't) I am going to write a check to the gummint from the Home Equity loan for the about $136,000+/- (the estimated amount collected from SS for the 8 years between 62 & 70) -at that point, it WAS, after all, a no interest loan of your own money from the government for those 8 years -and start collecting the higher monthly SS benefit for the rest of my life.

A 'tax write off' has been created due to the use of funds from the Equity Line 2nd on the house -a 30 year amortized note, which I am paying off on an accelerated rate now anyway -AND there is no 'stress' worrying if you can make it to the 'break even' point down the road because the 'estate' gets to worry about paying off the loan. . . OR continuing to benefit from the tax write off on the interest. It might even be paid off by then anyway, due to the accelerated principle pay down every month.

JJ -with your known 'health issues' (no dig), I would give a serious look at starting to collect at age 62. .I think they just recently announced a 5% COLA starting this, or next month. Take the money now, while the dollar is still worth something. . . and then look at it again at age 70.

P.S.: Another consideration is the overall financial situation and the desperation the Politicians will apply to 'solutions'. WHAT if they 'raise' the 'retirement age' before you have a chance to put in to start collecting?? 'Get while the getting is good' is a good motto in these circumstances.

Jetjok

W0XOFF,

Thanks for the words, but I believe I'm all set. When I went on LTD, the company (FedEx) asked that I apply for social security disability. Their reason was that, whatever social security would pay, would be a direct offset from what the company would have to pay me. So (as an example) if SS approved my disability claim and paid me $1000 a month, and LTD was paying me $6000 a month, they would then only pay me $5000 a month. It took about 2 or 3 weeks for SS to approve my disability, which I immediately reported to the company. That was back in 2007. However, on January 1st, 2008, our contract changed. Now if you're getting SS disability, they only offset 70% of what you get (instead of the full 100%), so in effect, on Jan 1st of last year, I received about $700 a month increase.

The interesting thing is that SS is paying me more than I would have been making if I had indeed applied for SS when I reached age 62. As well, the check they are sending me each month is actually a few dollars more than the payments I'd receive if I wait until I'm 66 to apply. And the SS administration told me that they'd not even revisit or review (with an eye toward canceling ) my claim for 6 to 7 years. So I guess I'll just continue collecting the social security disability income until I'm 66 and then apply for regular social security, which should then cancel the disability payments. It's a screwed up system, but it worked out well for me, in my situation.

JJ

MD10PLT

Everyone should use this tool. Start collecting SSN as soon as possible, don't spend it, put it in a safe savings account and collect the interest. Then when you turn 70 pay back the money keep the interest and start collecting the higher amount. There is no down side to this.

trashhauler

Maybe one, it will not be around when I get to that age. If it is, they'll say I make too much in retirement and I'm not entitled to get SS. Even though I paid into it for 40 plus years. Just being realistic.

MD10PLT

Ok I agree there is one down side. The whole system is a joke and should have never been started in the first place. However, if you actually get there and it still exist, the method previously mentioned does help maximize the returns.

MajorKong

What if you give all of that money back to your partner in life (the gov) and you fall over dead the next day. Are they going to pay your heirs back? I don't think so. Maybe you might reconsider this option. They are betting on you dying at a certain time. That is why they are offering more. Get it?

Jetjok

The only down-side (assuming that the gov't doesn't revoke your ability to repay and then take the higher payments) I see is if you elect to take the reduced payment initially, and either can't afford to just bank that monthly check, or worse, spend it and then not be able to afford to repay it later, you've greatly reduced your long-term benefits. But I agree, it's a sound idea for those of us who can actually live within our means, and who will live a long time.

JJ

MD10PLT

So in your plan you don't take anything until you are 70, then die the next day and end up with 1 month of benefits. Got it.

At least with the plan I mentioned, when you hit 70 you have cash in the bank to make the decision with.