Are you in the 9.9%?

[MTT]

Single with no dependents doesn’t pay that much to wait unless you continue to work.

Last statement I got It says I have paid in over 300K I my life time, says I am eligible for 2,500 ish per month stating @70

I have enough in the bank now to live on my own starting @ 65 - 7 years from now

and I continue to grow the money. - but today was disheartening

[4matic]

No matter when you take SS the break even age for an individual is around 84. Think about that more than the monthly benefit. Evaluate your personal health and family history. Especially if you can let other tax deferred assets grow.

[El Chupacabra]

No matter when you take SS the break even age for an individual is around 84. Think about that more than the monthly benefit. Evaluate your personal health and family history. Especially if you can let other tax deferred assets grow.

For each year you delay taking SS, your benefit increases by approx. 8%. Your other assets may or may not increase by 8% each year, but IMHO, a more-or-less guaranteed 8% annual increase is attractive.

If you are 62 (or any age between 62-70) and need the $, take SS. I think many people fall into this category.

If you are healthy and have a good expectation of living a long while past age 83 (or whatever the actuarial-neutral age for SS), and can live off other money, delay SS until 70. If you are married, spousal benefits may play into this decision.

If you don't think you'll live to age 83, and/or you want to minimize spending of other money (e.g. want to leave it as inheritance), take SS early.

[frorider]

Planning your date of death really helps with financial planning.

[uglymoney]

Read up on the five year rules for Roth conversions too, which is a big part of that strategy.

We didn't do this because of tax issues and a pre-existing rollover IRA. We are probably going to do a series of annual Roth conversions up to the limit of the lowest tax bracket (12%), whenever possible.

Keep in mind that if you have medical expenses or care expenses when you are older you can deduct those against your income so you can end up paying basically zero tax on income from tax deferred accounts. This exact scenario recently played out for my grandmother. My dad was able to pull money out of non annuatized (deferred) annuity investments at the same rate as her medical care requirements. He paid the rest of her non deductible expenses with the after tax money from the initial investments which left her with plenty of left over pocket money to hand down to her two sons when she passed away. No tax paid by anyone.

Side note. Never a need to annuatize since I think she died much richer than they had planned. Side note 2. She was 95 when she died and if she had lived a little longer those annuities were set to automatically annuatize! This would have screwed her kids out of their inheritance. Bunch of thieves selling those things.

[jono]

Planning your date of death really helps with financial planning.

I love how we worry more about outliving our money than about being dead.

[iceman]

Being old and sick and broke would suck is why.

[jono]

Meh. I've been sick. I've been broke. I'll take old over dead any day of the week. When that big health scare hits it will have one major upside: it cures the need to worry.

[4matic]

Being old and sick and broke would suck is why.

Not talking broke. You have Medicare. I’ll be happy with ten cats and a blanket at some point. Don’t necessarily need more money every year the older we get as the planners would have us believe.

[iceman]

Not talking broke. You have Medicare. I’ll be happy with ten cats and a blanket at some point. Don’t necessarily need more money every year the older we get as the planners would have us believe.

Well if you don't care if the money runs out then why are you Mister Risk-Averse with your investments? Why not catch a flight to Vegas and put it all on black and spin the wheel?

[XXX-er]

the people who say you need 70% usually have a vested interest in selling you an investment to make that 70%

I got along quite well on 50%

[4matic]

Well if you don't care if the money runs out then why are you Mister Risk-Averse with your investments? Why not catch a flight to Vegas and put it all on black and spin the wheel?

I'm risk averse because I can be. I won the game.

Don't you smoke? Your life probably actuates to 80 at best. Repeat, I never said broke or run out of money. Most financial plans factor a 2% pay increase every year. Really? I could easily CUT expense 2% a year if I had to. Personally, I use a 30 year drawdown to zero savings with a goal of bouncing my last check.

https://www.johnhancockinsurance.com...ancy-tool.aspx

[Cono Este]

Sounds like there's a pretty good story in there... What happened?



Are you buying individual municipal bonds? Trying to understand this strategy, which is very very different from my own.

For the most part,I’ve never had a salary, I’ve always taken risk to make money so the last thing to do is take your earnings and turn around and throw it back into more risk. A doctor with a dependable income can do that, I can’t.

Buying individual bonds in small amounts sucks. They’ve been scalped bu 3-4 broker dealers before the retail guy gets them. Big amts you use a separate Acct manager who takes down big amounts on the primary offering. Smaller amts I use vanguard.

If we ever see 7% munis again. Lock it in. That like 10% pretax, guaranteed. What more can u ask 4 for doing nothing.


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[4matic]

In reality though it takes some time to process check fraud. So maybe 2-3 months before charges hit the system. Time is money after all.

Refi-mortgage on non-recourse loan is ideal.

[iceman]

Don't you smoke?

Quit I guess about 3 years ago but yeah I did for a long time. If I can live a few more years I should be pretty much back on track actuarily-wise

[PB]

Meh. I've been sick. I've been broke. I'll take old over dead any day of the week. When that big health scare hits it will have one major upside: it cures the need to worry.

Careful - old just might fool you.

[shroom]

I’ve seen it mentioned a few times, so I’d just like to point out that if you have a 401k, you’re not maxing out your tax advantaged accounts unless you’re putting away 55k a year into it. You would think its 18500 (+ matching), but look up the mega backdoor roth.

thought this required availability of both after tax contributions as well as in service rollovers/distributions last time i scoped (neither F25 i’ve worked for has allowed), so kinda not avail to everyone. one of the reasons i want to incorporate some sort of small biz.

[jono]

Careful - old just might fool you.

Anything can happen. But so far being alive is my favorite thing and I'm already older than I've ever been, so I've got that going for me. Which is nice.

[Lindahl]

There is no mega back door Roth. The only way you get to the $55k limit is higher company match.you can’t do both afaik

Everyone with some money to gift should learn the lifetime exemption of $5 million. The $10k a year is in addition to that. It’s a great tool to convert real estate to tax exempt.

I think you’re confusing pretax 401k with 401k in general. I’ve been doing it for a few years now... but... some plans aren’t equipped to allow you to do it tho. Vanguard is... takes 4 clicks from my home page.

Talk to your tax guy. You + company match can contribute up to 55k into a 401k per year (pretax is capped at 18.5 - you only). Then you immediately convert the aftertax amount into a Roth (if your plan allows it). After it sits for 5 years the gains can be withdrawn tax free per normal Roth rules. The contribution can be withdrawn tax free whenever (you’ve already paid taxes on it). Best to keep a spreadsheet so you know what your total aftertax contribution is.

You can convert your pretax too but it counts as a distribution so you have to pay taxes on the contribution as well as the gains at conversion time. Most argue it’s better to keep it in there and engineer your retirement income from both sources for minimized taxes. In the penalty ages, married + 2 kids has $100k/yr come out at a nice fat zero per the 2017 brackets - should be higher now?

[Lindahl]

thought this required availability of both after tax contributions as well as in service rollovers/distributions last time i scoped (neither F25 i’ve worked for has allowed), so kinda not avail to everyone. one of the reasons i want to incorporate some sort of small biz.

Correct. Not everyone can do it. If you can, though, you should.

[iceman]

Anything can happen. But so far being alive is my favorite thing and I'm already older than I've ever been, so I've got that going for me. Which is nice.

I'm just saying...none of us have ever been old before, but it doesn't look great from here and if I can make it easier by doing more now, well I'm down.

Plus, it's gonna take some real money to buy all the heroin.

[Meadow Skipper]

Plus, it's gonna take some real money to buy all the heroin.

I’m figuring I’ll buy bulk. Save a little, plus I won’t have to keep going out.

[VTeton]

the people who say you need 70% usually have a vested interest in selling you an investment to make that 70%

I got along quite well on 50%

Yeah they are so full of shit with that 70% thing. If you make 60k a year, yeah 70% is nice. If you make 800k a year and don't have a hooker and blow problem, getting by on 25% should be fine.

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[iceman]

I’m figuring I’ll buy bulk. Save a little, plus I won’t have to keep going out.

Think of the gas money you'll save. I'm gonna buy a gross of mason jars and get to work.

[mcski]

I'm gonna buy a gross of mason jars and get to work.

Can you get sick drinkin piss?