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Author: Howie52 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75639  
Subject: Re: What age to take SS payments? Date: 12/8/2013 7:43 PM
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" I certainly haven't tried everything. My guess is if I make the portfolio really conservative then I'll get a different result.

This indicates to me that it's a better idea to take SS payments earlier rather than later. Usually I've been hearing the opposite advice"

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Keep in mind that ALL simulations use past data - and the past will
not predict the future.
Uncertainty is the worry that financial advisers try to handle by
running monte carlo simulations attempting to include all
probable combinations of results.
But there are problems with this approach - mainly the caveat that is
included with all investment prospectus documents and annual reports
----- the future will not of necessity look like the past.
Past performance does not predict future results.
Not even if you run simulations and have a really spiffy model.

As far as when should you take Social Security?
You need to assume the world will not go pooof - but you take it
when you need it at any age past 62.
If you get laid off at 62 and you do not have an income stream
that will let you live comfortably - you take it at 62.

There are generally two aspects that might influence you to delay -
1) If you have a spouse who does not have enough credits to
qualify on his/her own, they may have the benefit of a higher income
assistance if you delay.
Generally, when you have a spouse - you need to consider alternatives.
You can get a fair number of optional approaches to supplement
income after the spouse reaches 62.

2) If you are working and have no health issues - you might not need
the cash flow at 62 and may be able to gain later by delaying
till you need the help.

The issue is really an individual case thing. The 8% increase
in income on this supplemental support is a nice return
obtained by delaying - but then you are working - which is not
exactly what most folks really imagine their retirement
years will include.
And taking the supplement when you do not really need the
income is not exactly the thing Kennedy meant when he
said "Ask what you can do for your country."
Social Security is not really intended to be a "how do
I extract the most out of the funds" type of program.

Howie52
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