No. of Recommendations: 3
I can't think of a single investment that I can make that will safely return 8%. If I can live on my dividend and interest income from age 62 to 70, Social Security will be like a delayed lifetime annuity with an 8% return.

Delaying SS doesn't give you an 8% return. It just increases your eventual benefit by 8% for each year of delay (up to 70). But you forgo any benefit payment for that year. If you go around thinking that you're getting 8% return, then you are going to make bad decisions based on erroneous assumptions.

No delay, take for 5 years:
Total received: 5 * 12 * $1000 = $60,000
1 year delay followed by 4 years of payments.
Total received: 1 * $0 + 4 * 12 * $1080 = $51,840

You gave up $12,000 but gained $80/mo for the rest of your life (after the defer period). How long will it take you to that $12,000 you gave up? 1000/80 = 12000/960 = 12.5 years.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.