hmm, my response from last night didn't get saved, will try to make this shorter. I completely understand the SS situation, but I am a rebel now, because SS is "found money", IOW, I anticipated a monthly payment of about $500 before the SS Fairness Act passed and was signed.
Now that I am looking at $1113 per month at age 62, I am more interested in getting that money ASAP and investing that money.
My wife's SS will start at age 65, at about $1600 per month. She also has a pension coming from a previous employer to start at age 65 also.
When she starts receiving both payments, our income might look like this:
my pension - reduced to about $2900
her pension -.......................$866
my SS................................$1113
her SS................................$1600
Our ages then: 65 - her and 63 me.
GT without any income from investments......6479 gross, take off one person's medicare (220?) =6259 - income taxes =$5758
I plan to enjoy retirement a little bit more than that amount, so I will strongly consider re-balancing our portfolios. Our total should be about $440k. If I take 60% of that number and put it in bonds or TIPS, I should get about 4.4% on 264k. That would equal 968 per month before taxes. After taxes about 871. ...new GT = $6629.
My goodness that should be plenty! Especially for an old cheapskate like me. After the bonds finish throwing off interest, I will still have the principal from the bonds, so fast forward to me at age 70 and we have the following numbers, not including COLAs from SS.
my pension $3391
her pension 866
my SS..........$1113
her SS..........$1600
The really cool thing about this is that at age 70, I m no longer looking at the necessity of buying an SPIA at age 75 to combat inflation because I have the annual 2% increase on my pension, plus we both have COLAs on our SS. That's 3 out of 4 monthly payments that have annual increases.![:D]( "Very Happy")
![:D]( "Very Happy")
![:D]( "Very Happy")
If these numbers are indeed real, and I will have real numbers within the next 60 days at the maximum, then I have indeed landed the airplane very well.
I will give up potential gains, so the size of the combined portfolios at my age 70 will be probably be about $500k. Not a problem.
The really wild card could be that I might want to go back to rural Alaska again and teach one or two more years. My favorite village to live in up there has some gravel roads for full-size vehicles, has planes in the village, and has a full-service store, AC....Alaska Commercial. It also happens to have some incredible natural beauty as well. I made myself avoid looking at job postings above the Arctic Circle all school year until now. I looked yesterday and found two SPED teaching jobs; one at my old stomping grounds and the other in the dream village!!!
Yes, I have caught the Alaska bug again, and the wife says yes, I can go back. Total financial infusion for one year, NOT including the state retirement program that is mandatory.....about $80k. Work two years and invest all 160k, and delay SS, put the 160k back into the market, which mostly offsets the money that came out of the market for income.
I know, I don't need it but there is the slight chance---- just in case memory care is needed and my parents outlive me and the dw, then that six figure bonus is very welcome.
Now that I am looking at $1113 per month at age 62, I am more interested in getting that money ASAP and investing that money.
My wife's SS will start at age 65, at about $1600 per month. She also has a pension coming from a previous employer to start at age 65 also.
When she starts receiving both payments, our income might look like this:
my pension - reduced to about $2900
her pension -.......................$866
my SS................................$1113
her SS................................$1600
Our ages then: 65 - her and 63 me.
GT without any income from investments......6479 gross, take off one person's medicare (220?) =6259 - income taxes =$5758
I plan to enjoy retirement a little bit more than that amount, so I will strongly consider re-balancing our portfolios. Our total should be about $440k. If I take 60% of that number and put it in bonds or TIPS, I should get about 4.4% on 264k. That would equal 968 per month before taxes. After taxes about 871. ...new GT = $6629.
My goodness that should be plenty! Especially for an old cheapskate like me. After the bonds finish throwing off interest, I will still have the principal from the bonds, so fast forward to me at age 70 and we have the following numbers, not including COLAs from SS.
my pension $3391
her pension 866
my SS..........$1113
her SS..........$1600
The really cool thing about this is that at age 70, I m no longer looking at the necessity of buying an SPIA at age 75 to combat inflation because I have the annual 2% increase on my pension, plus we both have COLAs on our SS. That's 3 out of 4 monthly payments that have annual increases.
If these numbers are indeed real, and I will have real numbers within the next 60 days at the maximum, then I have indeed landed the airplane very well.
I will give up potential gains, so the size of the combined portfolios at my age 70 will be probably be about $500k. Not a problem.
The really wild card could be that I might want to go back to rural Alaska again and teach one or two more years. My favorite village to live in up there has some gravel roads for full-size vehicles, has planes in the village, and has a full-service store, AC....Alaska Commercial. It also happens to have some incredible natural beauty as well. I made myself avoid looking at job postings above the Arctic Circle all school year until now. I looked yesterday and found two SPED teaching jobs; one at my old stomping grounds and the other in the dream village!!!
Yes, I have caught the Alaska bug again, and the wife says yes, I can go back. Total financial infusion for one year, NOT including the state retirement program that is mandatory.....about $80k. Work two years and invest all 160k, and delay SS, put the 160k back into the market, which mostly offsets the money that came out of the market for income.
I know, I don't need it but there is the slight chance---- just in case memory care is needed and my parents outlive me and the dw, then that six figure bonus is very welcome.
Statistics: Posted by AlaskaTeach — Wed Feb 19, 2025 12:21 am — Replies 34 — Views 3654