Saving Social Security

Quote: DRich

Stop it Ed, I am already jealous of you. You don't need to rub it in.

What are you waiting for?
Life is short
No doubt you have way more money then me and a lot nicer SSA check then mine
Of course our lifestyles are different lol
I can't tell you how many friends have passed away already. The last friend that died was from a stroke. It's a bit scary. 5 years younger then me. Everytime I see somebody famous dying, it's not unusual to see a younger age then me at 65. I got high blood pressure so you never know when the big one will hit.
Bottom line
Do what makes you happy :-)
That's my overall philosophy in life

Quote: terapined

Do what makes you happy :-) That's my overall philosophy in life

Better yet: "Do what makes you and those you love happy."

Quote: terapined

What are you waiting for?
Life is short
No doubt you have way more money then me and a lot nicer SSA check then mine
Of course our lifestyles are different lol
I can't tell you how many friends have passed away already. The last friend that died was from a stroke. It's a bit scary. 5 years younger then me. Everytime I see somebody famous dying, it's not unusual to see a younger age then me at 65. I got high blood pressure so you never know when the big one will hit.
Bottom line
Do what makes you happy :-)
That's my overall philosophy in life

I agree with most of what you are saying. Being married with children I may have some considerations that don't apply to you. If I could collect SS today I would probably retire. Health insurance is the big variable for me right now. That extra $2000 or so a month would currently exceed my budget. My wife has had three brain surgeries in the last two years so keeping a top notch insurance policy is necessary.

some discussion going about social security on another thread

my recent SS experience involves waiting till I was 70 for taking my benefits instead of earlier

I've always clicked on links offering advice on social security, a lot of the better stuff coming from Motley Fool. Innumerous articles I've read over the years. But I realized just a few days ago I had started a ticking time bomb ... I had just added a large wad of income, definitely enjoying it too, but not thinking about this: it's a big wad of *taxable* income with *no withholding* that I just added! I guess because it is so easy to think of your SS as something you earned, by gum, that's mine! But I was forgetting that I was heading for a big tax bill!

It was a few months only in 2023, not a full year, and I noticed I estimated tax wrong. Thankfully, I guess, as that had me wondering about the SS effect as we head into another year. Guess what? It's taxable up to 85% of it! Online help as to how to actually factor it that I found just said "go pay somebody to figure it out, it might just be 85% taxable for you, pal"

Which got me thinking about all those articles I read. I don't remember a single one of them warning "you know, you're about to add a big wad of income with no withholding, dude, you better think about that". As an example, see if you can find it in the below. I can't.

https://www.fool.com/retirement/social-security/how-to-maximize-social-security/

Quote: odiousgambit

some discussion going about social security on another thread

my recent SS experience involves waiting till I was 70 for taking my benefits instead of earlier

I've always clicked on links offering advice on social security, a lot of the better stuff coming from Motley Fool. Innumerous articles I've read over the years. But I realized just a few days ago I had started a ticking time bomb ... I had just added a large wad of income, definitely enjoying it too, but not thinking about this: it's a big wad of *taxable* income with *no withholding* that I just added! I guess because it is so easy to think of your SS as something you earned, by gum, that's mine! But I was forgetting that I was heading for a big tax bill!

It was a few months only in 2023, not a full year, and I noticed I estimated tax wrong. Thankfully, I guess, as that had me wondering about the SS effect as we head into another year. Guess what? It's taxable up to 85% of it! Online help as to how to actually factor it that I found just said "go pay somebody to figure it out, it might just be 85% taxable for you, pal"

Which got me thinking about all those articles I read. I don't remember a single one of them warning "you know, you're about to add a big wad of income with no withholding, dude, you better think about that". As an example, see if you can find it in the below. I can't.

https://www.fool.com/retirement/social-security/how-to-maximize-social-security/

You would think they would mention that. When I was in the 1099 world of landmen. Some of us took it upon ourselves to warn "the kids" on the crew about putting money aside. Some people saw the checks and decided to live like hogs in the fat house all year. Then a huge tax bill! And we had to explain in addition to income tax they had to put BOTH halves of FICA aside as that would be due as well.

I usually got a small fine for not sending enough in all year, but I had it aside to pay when the time came.

Glad you mentioned this, though. I will probably take early benefits as I do not see myself living long enough to make waiting pay.

Quote: AZDuffman

Glad you mentioned this, though. I will probably take early benefits as I do not see myself living long enough to make waiting pay.

That is my thought also. Therefore, I will live to 110.

The problem with taking benefits early, is inflation and the cost of Medicare premiums rising faster than COLA.

Beginning in 2025, the full retirement age for Social Security is rising to 67.

https://www.foxbusiness.com/economy/social-securitys-full-retirement-age-increasing-2025-what-know

Quote: AZDuffman

You would think they would mention that. When I was in the 1099 world of landmen. Some of us took it upon ourselves to warn "the kids" on the crew about putting money aside. Some people saw the checks and decided to live like hogs in the fat house all year. Then a huge tax bill! And we had to explain in addition to income tax they had to put BOTH halves of FICA aside as that would be due as well.

I usually got a small fine for not sending enough in all year, but I had it aside to pay when the time came.

Glad you mentioned this, though. I will probably take early benefits as I do not see myself living long enough to make waiting pay.

When taking SS, can you elect to have withholding taken off the top, so we don't find ourselves in the 1099 pickle at the end of the year?

Quote: AZDuffman

Glad you mentioned this, though. I will probably take early benefits as I do not see myself living long enough to make waiting pay.

You would be a fool not to. I took mine early. The fact is if you wait till you're 70 for the maximum benefits you have to live to be about 85 to get back the money you lost between 62 and 70. The government wants you to wait because every year that goes by there's a greater chance you'll die and never collect anything.

Quote: Evenbob

You would be a fool not to. I took mine early. The fact is if you wait till you're 70 for the maximum benefits you have to live to be about 85 to get back the money you lost between 62 and 70. The government wants you to wait because every year that goes by there's a greater chance you'll die and never collect anything.

I’ll do the math when the time comes but I honestly don’t expect to make age 70. Even if I do make that I don’t see the USD holding up past 2040 or so at most. India might be our great friendemy by that point.