tallguy
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Post by tallguy on Apr 10, 2019 14:19:03 GMT -5
I sold some ETF shares in my IRA. Getting ready to take some money out of the market for the first time since I started investing 32 years ago. Only $10,000, so not a lot, but still a first for me. I guess when you don't get a paycheck for 18 months you eventually run low on cash! Who knew?
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laterbloomer
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Post by laterbloomer on Apr 10, 2019 22:03:53 GMT -5
Do you have any income? Other than cashing in investments?
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tallguy
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Post by tallguy on Apr 10, 2019 22:31:55 GMT -5
Do you have any income? Other than cashing in investments? Not a lot. Rents and royalties of a few hundred per month. I had built up a substantial cash cushion for maybe doing some things at the house, but decided to go part-time and then fully retire instead. Knowing that I didn't want to take from my Roth or from taxable accounts I was living off that cushion. Adding that few hundred to Social Security when I hit 60 will cover all of my necessary expenses and my investments will cover the extras like travel and entertainment. The bigger problem will be trying to switch from saver to spender. That's a completely different mindset.
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CCL
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Post by CCL on Apr 11, 2019 5:35:42 GMT -5
How are you going to collect Social Security at 60?
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lurkyloo
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Post by lurkyloo on Apr 11, 2019 6:03:10 GMT -5
Ya, I expect to have trouble with that transition too. Congrats!
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countrygirl2
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Post by countrygirl2 on Apr 11, 2019 6:16:09 GMT -5
It's hard, I keep thinking we should be saving. So each year taking our RMD's I'm trying to figure out how to save it, sure hasn't happened yet. I don't know if the additional rent will let us do that till I see it. Or just use it for fun things instead of essentials. For us a comfortable retirement is about $5 to $6k a month. Of course it could be done on less if we had to. That's what I estimated before retirement. Hubs kept saying we could save the RMD's, I kept saying, no we will need it for living expenses, guess who was right. Now if we ever downsize that will change some.
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TheOtherMe
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Post by TheOtherMe on Apr 11, 2019 7:56:11 GMT -5
How are you going to collect Social Security at 60? Same question. I thought early social security was at 62?
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Deleted
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Post by Deleted on Apr 11, 2019 8:03:05 GMT -5
I've been in withdrawal mode for almost 5 years now- retired at 61. The total I've withdrawn since retirement is genuinely scary. What I find reassuring is that the withdrawal rate works out to 3.4%, my investments have appreciated 3%/year AFTER withdrawals, and a giant chunk of my spending is travel and charity, both of which can be cut back if needed.
But yes, the early times require an adjustment. It takes awhile to get comfortable with the new financial picture.
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Blonde Granny
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Post by Blonde Granny on Apr 11, 2019 8:41:18 GMT -5
I found out a few years ago after buying YNAB that matching income to spending is a real awakening. Today, I live on SS and VA disability. Investments stay invested unless my house is on fire and needs a major fix it job like it did last year. Trying to cash flow repairs from monthly income simply wasn't going to be possible.
After almost 25 years of being retired and another 3.5 years of being a widow, I pretty much have this spending under control.
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lynnerself
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Post by lynnerself on Apr 11, 2019 10:52:24 GMT -5
It's the taxes that I'm just learning to get used to. If I need $5000 , I need to withdraw $6000 or more from my IRA to cover my state and federal taxes
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tallguy
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Post by tallguy on Apr 11, 2019 11:48:25 GMT -5
How are you going to collect Social Security at 60? Same question. I thought early social security was at 62? The question most people have to figure out is whether to claim early at 62 or let their benefit grow until 70 (or any age in between.) That question is no longer relevant for me. I will be claiming survivor's benefits on my ex-wife's record at 60 as a consequence of her death last year. Unlike spousal benefits, one is not deemed to be filing for all eligible benefits at the same time so I can file just for survivor's benefits. You can actually file for survivor's benefits at 50 if you are disabled, or at any age (I think) if and while you are caring for the decedent's minor child. The benefits will be reduced, but I will receive 71.5% of her PIA by claiming at 60. I can switch to my own benefit at any age after 62, but it makes no sense for me to switch before 70. I am thus going to receive ten years of "free" benefits off of her record before switching to my own at it's maximum level. Social Security is far more complicated than click-bait articles make it out to be, and the only way to figure it out is to do the research. Fortunately, I like doing the research.
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laterbloomer
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Post by laterbloomer on Apr 11, 2019 14:24:48 GMT -5
How do you qualify as your ex's survivor?
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tallguy
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Post by tallguy on Apr 11, 2019 14:34:30 GMT -5
Divorced spouses have pretty much the same benefit eligibility as current spouses as long as the marriage lasted at least ten years. In some ways it is even better. Theoretically, a person could be eligible for benefits on the record of multiple ex-spouses under certain conditions as long as each marriage lasted at least ten years.
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NoNamePerson
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Post by NoNamePerson on Apr 11, 2019 14:39:04 GMT -5
How do you qualify as your ex's survivor? That is one thing the guy at SS office told me when I applied. He said how if anything changes like death of EX be sure to let us know due to survivors benefits. I told him I didn't wish my EX any ill will but I thought I'd be on the phone to my kiddo saying how sorry I was to hear about his dad passing as I'm driving to SS to get those benefits added to my SS
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tallguy
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Post by tallguy on Apr 11, 2019 15:03:09 GMT -5
I don't think you get both.... You get either or. You get a combination of benefits equalling the higher of the two. So yes, part of his benefit would be added to hers to equal the benefit he was receiving or would have received. Depends how you read the statement.
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NoNamePerson
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Post by NoNamePerson on Apr 11, 2019 15:09:04 GMT -5
I don't think you get both.... You get either or. You get a combination of benefits equalling the higher of the two. So yes, part of his benefit would be added to hers to equal the benefit he was receiving or would have received. Depends how you read the statement. Yep, that's the way he explained it to me. Maybe I worded my post wrong but the thought is still there
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tallguy
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Post by tallguy on Apr 11, 2019 15:22:35 GMT -5
You get a combination of benefits equalling the higher of the two. So yes, part of his benefit would be added to hers to equal the benefit he was receiving or would have received. Depends how you read the statement. Yep, that's the way he explained it to me. Maybe I worded my post wrong but the thought is still there Yes. Dem was reading it as though you were saying the ex-spouse's benefit amount would be added to yours. Your statement was ambiguous and he went the other way on the interpretation. I'll bet though that there are a lot of people out there who think it actually does work that way. Sad for them when they learn the truth.
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Deleted
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Post by Deleted on Apr 11, 2019 15:29:06 GMT -5
Divorced spouses have pretty much the same benefit eligibility as current spouses as long as the marriage lasted at least ten years. In some ways it is even better. Theoretically, a person could be eligible for benefits on the record of multiple ex-spouses under certain conditions as long as each marriage lasted at least ten years. Yes- when I filed for Survivor SS after DH died, they actually calculated what I'd get based on my Ex's record (he was also deceased and we'd been married 13 years). It was a little higher on DH's record. I was 63 at the time and, like tallguy, will be letting my own benefit grow till I start collecting at age 70.
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CCL
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Post by CCL on Apr 11, 2019 17:29:25 GMT -5
I didn't know you could do that, so I learned something new today. I don't have an ex, so never thought much about it.
I was hoping to draw on my own record, then switch to 50% of hubby's, but they changed that, so now I can't. That's one of the most difficult things for me, trying to manage everything when they keep changing it all.
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CCL
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Post by CCL on Apr 11, 2019 17:31:17 GMT -5
Do they let you collect the ex's full amount or is it 50%?
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NastyWoman
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Post by NastyWoman on Apr 11, 2019 17:52:27 GMT -5
Do they let you collect the ex's full amount or is it 50%? I believe that while the ex is alive it is 50% (which stops growing at ex FRA age btw). However, upon death it would be the full amount (I am the ex so I better watch my back LOL).
I don't know if there is a discount to survivor benefits if you filed before your own FRA.
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tallguy
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Post by tallguy on Apr 11, 2019 18:22:24 GMT -5
As I said in #10, the benefits are reduced because I am filing before MY FRA. I will receive 71.5% of her PIA (her full benefit at her FRA.) If I were to wait the discount would be less, but there is no reason whatsoever to wait. There are different rules if she had been receiving benefits already, but since she died before being eligible to file it is simpler. The key part is that survivor's benefits are not subject to the relatively new "deemed filing" rules so that I can file only for one and let my own benefit grow. That is no longer allowed for spousal benefits. If someone wishes to file a restricted application for only spousal benefits and let their own grow they have to have been age-qualified by the rule change a few years ago. It is otherwise no longer allowed. When filing for one you are deemed to be filing for all benefits you are entitled to and can no longer "pick and choose."
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NastyWoman
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Post by NastyWoman on Apr 11, 2019 18:48:44 GMT -5
As I said in #10, the benefits are reduced because I am filing before MY FRA. I will receive 71.5% of her PIA (her full benefit at her FRA.) If I were to wait the discount would be less, but there is no reason whatsoever to wait. There are different rules if she had been receiving benefits already, but since she died before being eligible to file it is simpler. The key part is that survivor's benefits are not subject to the relatively new "deemed filing" rules so that I can file only for one and let my own benefit grow. That is no longer allowed for spousal benefits. If someone wishes to file a restricted application for only spousal benefits and let their own grow they have to have been age-qualified by the rule change a few years ago. It is otherwise no longer allowed. When filing for one you are deemed to be filing for all benefits you are entitled to and can no longer "pick and choose." Ahhh, but you are doing it the other way around → survivor benefits first, yours later. I was wondering what happened if you filed for your own benefits first (and early) and after that went for the survivor benefits say at age 69? Would the payout reduction carry over?
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tallguy
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Post by tallguy on Apr 11, 2019 19:53:03 GMT -5
As I said in #10, the benefits are reduced because I am filing before MY FRA. I will receive 71.5% of her PIA (her full benefit at her FRA.) If I were to wait the discount would be less, but there is no reason whatsoever to wait. There are different rules if she had been receiving benefits already, but since she died before being eligible to file it is simpler. The key part is that survivor's benefits are not subject to the relatively new "deemed filing" rules so that I can file only for one and let my own benefit grow. That is no longer allowed for spousal benefits. If someone wishes to file a restricted application for only spousal benefits and let their own grow they have to have been age-qualified by the rule change a few years ago. It is otherwise no longer allowed. When filing for one you are deemed to be filing for all benefits you are entitled to and can no longer "pick and choose." Ahhh, but you are doing it the other way around → survivor benefits first, yours later. I was wondering what happened if you filed for your own benefits first (and early) and after that went for the survivor benefits say at age 69? Would the payout reduction carry over? There are two problems with going the other way. First, I cannot file for my own benefits until age 62. By filing for survivor's benefits first I can start two years earlier. Second, delaying my own benefits means that I can earn DRC (delayed retirement credits) until I hit 70. That means that my benefit continues to grow until then. There are no delayed credits after FRA on someone else's account. That means that the benefits on my ex-wife's record top out far earlier. I would not be able to make up the difference between waiting two years to start and having smaller checks for the first several years.
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countrygirl2
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Post by countrygirl2 on Apr 13, 2019 11:15:32 GMT -5
I was reading that I would have to take a reduction if hubs passed away as I took benefits at age 62. I have read it both ways that his survivor benefits will be reduced 25% for me but now I'm reading they won't be. Guess I will have to check with SS. But I doubt its an issue as I expect him to be the survivor, but who knows.
Good luck Tall Guy, we have not had to take out extra, but that one year of high taxes sure ate up our extra cash and that hurt. But we are ok, the newest rental will put us back in having a cushion monthly. We are toying with buying a nicer house that we might eventually move into in town, but there are few that are newer then the 70's unless we build new. The few there are, are in a subdivision I don't want to live in, to many young families, I don't really want that. We will pay 20% down and let the rent pay the payments, then if we have to sell this pay it off. I don't want to go more then $150k for it, as we have no idea how much we could sell this house for. $300k I hope but you never know. We have more then that in it.
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