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jcg123 wrote:
I can't think of a single investment that I can make that will safely return 8%.

What? Are people here so confused? Waiting on SS returns nothing like 8%. Sure, waiting gets you approximately 8% higher payments per year. But meanwhile you are getting paid. Go play with Ray's spreadsheet to see exactly what it looks like, but simplistically if you take payments at 62 rather than waiting for age 70, come the time you would be getting your first payment at 70 you will have eight years worth of payments in the bank.

So if your age 62 payment is $10K per year (and ignoring COLA which lifts all boats equally), you've got $80K in the bank when you hit age 70. At that point you'd get about $17K per year in SS rather than $10K, but in fact your investment is down a huge amount ($0 vs. $80K). After ten years of getting payments at $17K you would have $170K, but the 62yo starter has eighteen years worth of $10K, so is still ahead with $180K.

This is a simplistic example, ignoring COLA and the effects of investing the money rather than just putting the cash in your mattress. But the point is that thinking you are in any sense getting 8% just for waiting is absurd.

-IGU-
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