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URL:  http://boards.fool.com/spirit11-quotin-one-of-the-earlier-posts-it-11756867.aspx

Subject:  Re: Age to collect social security Date:  1/5/2000  5:30 PM
Author:  JAFO31 Number:  17398 of 75383

spirit11: "In one of the earlier posts, it was suggested that collecting social security at 65 and continuing to work would be okay. However, as I understand it, the amount of social security goes up to a maximum at age 70. However, if I am over 65, making a little more than 50K, wouldn't it be better to defer taking SS payments until I am 70."

Better for whom? What if you die tomorrow? I beleive that you are probably correct in your assessment, but theonly way to analyze fully is to get the numbers and run them.

How much would you collect monthly if you started now? What could you earn by investing that amount (presumably you do not currently need it for current living expenses because your alternative is to delay receiving it). How large will this sum (call it the Invested Pool) be when you reach age 70?

versus

How much would you collect monthly if you wait until age 70?

Then, how many months (years) could you pay yourself the difference between the amount you would collect at age 70 minus the amount you would collect now from the Invested Pool, plus earnings theereon until age 70, plus any future earnings until the Invested Pool is depleted entirely. What are the odds that you will live that long? What if you die earlier?

Much will depend on the actual amounts available to you, your assumed investment return and your assumed tax rate. IMO, THERE IS NO SUBSTITUTE FOR ACTUALLY RUNNING THE NUMBERS.

Just my $0.02. Regards, JAFO

There would then be no limit on earnings, and I would be collecting the maximum amount. I believe the amount is fixed according to the year you take it and would not increase, depending on earnings.>>>>



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