Just playing with an interest calendar...I will be turning 62 shortly, and am preparing to file for early SS benefits. I have wrestled with this decision given everything I've read that advises to WAIT, and would appreciate Bogelheads' opinions before I take the plunge and file.
My Situation:
- Age 62, married (spouse 61). I am retired, spouse has been homemaker since first child 27 years ago. Three kids total, two on their own and youngest a sophomore in college (remaining tuition fully funded in 529).
- I have two pensions which cover 100% of our living expenses. No reduction in payment to spouse after I die. Pensions are not cola'd.
- Home value $1.4M, no mortgage. No other debt.
- Investment portfolio value $4M, 75% equity/25% bonds. All equity is invested in ITOT etf, bonds are individual Treasuries. About half of portfolio is taxable, the other half in a mixture of traditional and ROTH IRAs.
- On company healthcare insurance until medicare at 65. Spouse has LTC insurance, I do not.
Social Security:
- At 62 my SS = $2500 monthly (if delay filing, at 67 = $3600, 70 = $4500).
- My plan is to take SS at 62, and given that I don't need it for living expenses I will funnel the monthly payment into the ITOT etf. Just allow it to grow as part of my estate.
- I ran a breakeven analysis at various return levels. For example, at 5% (which in the long term should be conservative for a total US market investment I think), my breakeven is around 86-87 years old.
I appreciate all thoughts - thanks!
[This topic has been moved to the “Personal Finance (Not Investing)" forum. Moderator Pops1860]
If you receive 2500 monthly taking SS 8 years earlier, after eight years, if you invested in the market, assuming 8% return you end up with ...
337K vs 0K if you took it at 70.
Assuming 8% return, 337x0.08=27K annually or 2250/month. Which is ballpark the same as the difference between delaying and not delaying. In that case I might consider a bird in the hand is worth more than two in the bush.
Statistics: Posted by KBR — Wed Aug 14, 2024 4:14 pm — Replies 15 — Views 849