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luckyleftyme2 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-03-12 09:07 AM
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some interesting social security ideas

this might be of help to some reching their retirement age. I found the last paragraph
new to me and maybe a financial avenue to explore.
Q: I'm about to turn 66. I want to put off starting my Social Security until age 70 because if I do, I'll get an extra $600 or so per month in a delayed retirement bonus added to by Social Security checks. But my husband said I should take my Social Security now because he doesn't think Social Security will even be there in another four years. So should I take it now or wait until age 70?

A: Before I answer your question, let me suggest that you guys better sell all your earthly possessions and move into a cave because I read somewhere on the Internet that the world is going to end in the next couple of weeks!

Dumb idea, right? Well, no offense, but so is your husband's ... or, let me clarify that: He might have the right plan for you, but he's suggesting it for the wrong reason.

I have worked on Social Security issues for 40 years now, and for 40 years, people have been predicting the program's imminent demise. Social Security is not going away. It will change. It has changed a lot in the last 75 years, and it will undoubtedly change in the next 75 years.

And if there are reforms in the next couple of years, those reforms will not impact people like you. Major changes to the program, such as an increase in the retirement age, are phased in over decades. If the retirement age goes up to 68, for example, that change will impact our kids and grandkids, but not old geezers like you and me.

So you should make your decisions based on the Social Security program we have today, not on your husband's nebulous predictions for the future of the program.

And now the question is this: Should you take Social Security at age 66 or wait until 70? I can answer that question if you can answer this question: When are you going to die? Because no one really knows the answer to that question, no one really knows the optimal time to start his or her Social Security. Making that decision is a gamble we all take.

Personally, I would start benefits now, just because I'm the kind of person who wants to spend my money while I'm still young enough to enjoy it. But any good financial planner would probably advise you to wait until age 70 because statistically, there's a good chance that you'll live long enough getting the higher age-70 rate to make up for the money you'd lose by not taking your Social Security now.

You do have another strategy. Assuming your husband is already getting Social Security and because you're 66 years old, you could take a wife's benefit on his record now. You'd get 50 percent of his rate. You could do that until age 70 and then switch to your own Social Security and get that $600 bonus you mentioned.
their is no doubt you need to explore all the avenues open to you. many want to continue to build their s.s but don't want to work full time any more! this could make it possible!
certainly worth exploring!
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