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Author: Dancharo Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: taking social security at 62 Date: 6/22/2000 3:14 AM
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I am almost 62 years old, and still working on my own business with my wife. If I start to take my benefits at 62 I will get around $700 per month. It seems that if I take my benefits now and invest them perhaps in a good mutual fund, I will be better off than waiting until 65. My question is how much of this $700 will be left to invest? My income business income will probably be around 75k, but could be shifted to my wife. Any thought?
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22786 of 76418
Subject: Re: taking social security at 62 Date: 6/22/2000 7:07 AM
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Greetings, Dancharo, and welcome. You asked:

<<I am almost 62 years old, and still working on my own business with my wife. If I start to take my benefits at 62 I will get around $700 per month. It seems that if I take my benefits now and invest them perhaps in a good mutual fund, I will be better off than waiting until 65. My question is how much of this $700 will be left to invest? My income business income will probably be around 75k, but could be shifted to my wife. Any thought? >>


Social Security earnings limitations on retirement benefits change annually based on inflation, and they only affect retirees younger than age 65. This year, those who are between the ages of 62 and 65 may earn up to $10,080 per year without losing any part of a Social Security retirement benefit. If they exceed that amount, though, they will lose $1 in benefits for every $2 of the excess.

The point at which you would lose all of your benefits is easy to determine. Simply multiply your annual benefit by two, and then add $10,080 to that result. As an example, this year the average Social Security retirement benefit is $804 per month, or $9,648 per year. Multiply $9,648 by two, and you get $19,296. Adding $10,080 to that result gives you $29,376, the point at which total forfeiture occurs this year for someone younger than age 65 who draws the average benefit. Your personal total forfeiture point may be lower or higher depending on the size of your retirement benefit. And remember, you may work at a job and earn right up to $10,080 without losing one cent of your Social Security check.

Regards..Pixy



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Author: TMFCookie Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22814 of 76418
Subject: Re: taking social security at 62 Date: 6/23/2000 3:22 PM
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I have seen some calculations (presuming that you didn't lose benefits from making too much) that showed that your breakeven point was 15 years down the road (don't remember the investing assumptions which are obviously crucial). When I reach 62 (and the normal retirement age is 66), I intend to go ahead and take the benefits immediately (bird in hand). I have noticed that my expected monthly benefit keeps dropping every time I get an estimated benefits statments from Social Security and I would something for all the money I have thrown into it.

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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22817 of 76418
Subject: Re: taking social security at 62 Date: 6/23/2000 5:20 PM
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TMFCookie, it's the clawback. If you have any kind of full time job except for a day care worker or grocery store cashier (or similarly grossly underpaid jobs), you are going to lose a passel of benefits if you try to collect at 62. TMFPixy has discussed this at great length.

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Author: TMFCookie Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22878 of 76418
Subject: Re: taking social security at 62 Date: 6/26/2000 8:13 AM
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Since I expect to retire by 62, I do not plan on having a full time job.

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