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Ot investing 101 - Social Security: Why Stock Investors Should Claim at 62
Ss provides a key source of retirement income for tens of millions of Americans, and one of the biggest financial decisions that older Americans have to make is when to start taking their Social Security benefits. Faced with a choice between larger benefits later in life and smaller benefits immediately, many choose to take their Social Security retirement benefits right at age 62, the earliest claiming age
For mfo board members... At what age do folks think will start claiming SS and why?
That magicvalley website doesn't like my ad-blocker. ... Alright then, I suppose reading that item is just not a priority... I claimed at 63, last year. The SS $$$ just plain helps to both meet expenses and to save for vacations away. We are comfortable in a modest lifestyle because wifey still works, and will be doing so for many years. Nineteen years between the two of us. The cherry on top of the sundae is a trad. pension. ****************************************************** Here's something else which I think I've not mentioned here before at MFO: According to SSA, when I was in the midst of filing to begin SS monthly payments, I was warned I would have to accept reduced benefits, because a number of my work positions, in the years I was earning the most, were "uncovered."
Uncovered means that the employer didn't "cover" you by paying in. If the SSA doesn't see a record from the employer, then the wonderful, gorgeous and outstanding SSA employees just figure that those particular jobs just don't count, in terms of calculating your monthly benefit.
I had multiple phone calls with them, telling me I should be prepared to get less than I figured I might. Once, I was at the lake fishing, getting away from PEOPLE, and they called. I said, "you have no new information? You just called to upset me?" Ya, they did.
Throughout all of this junk, I repeated to them over and over that I had indeed paid-in. ALWAYS.
Have I mentioned yet that the worst thing in the world is a lie? And that I was being treated as a liar? Finally a Superv. called to say I ought to come in, in person, with 2010 and 2011 tax returns. He found the item which confirmed for him that I had indeed paid-in. Of course, he was using those two as a representative slice of my history. Suddenly, my still pending monthly benefit went up by $500.00.
He apologized, sort of, for being so suspicious, and not believing me until then. Then he gave me a phone number to call if, after 5 years or so, the account is audited and questions arise. Sounds like it MIGHT be the case, a few years from now, that SSA may demonstrate that they don't trust their own workers, including Supervisors. The very prospect of this happening is... um..... bullshit. SAVE YOUR TAX RETURNS!!! DON'T GET SHORTCHANGED.
Hello thx for all good info. By the time I get there everything likely run out and govt could be in bankruptcy the rate we are going in ~19+yrs Togo... lol... But if it still there I would consider claiming asap before it is all dried up
@Crash; Did you not get annual reports from SS showing annual earning from your job(s) ? Maybe they quit doing this after I retired 2010 ? Also if someone served in armed forces I believe you get a (bonus) amount added into yearly total. This is something I need to check into before I start drawing in a few months. Have a very good week, Derf
SSA did stop wasting paper and postage. These days, they only mail you these reports (annually) if you're over 60, not on SS, and don't have an SSA login.
@johnN The topic of SS is always of consequence for someone or a family on any given day of the week. --- the link was picked by "magicvalley" from a MotleyFool write. The Fool has had numerous stories related to the SS area over the years. However, I'm not registered at the Fool and won't be; so I'm not able to discover the "secrets" mentioned at the end of all of their SS related posts. --- if you think that the government is going to become bankrupt (meaning fail) and/or SS is going to be deplete of any money for you and yours in the next 20 years; your best choices would be to form a small group of trusted friends to prepare for issues more serious within society than whether SS monies would be available. --- if the government fails, I suggest the other likely events would be that any remaining company pension programs, 401k's/IRA's or other personal retirement accounts would also become worthless. One's saving grace could be that these accounts remain intact; but worth less, as the government devalues the currency at 10 or 20 or 30:1 of today's value.
Lastly, as to when folks start to access SS; well, too many variables, yes? Not unlike attempting to offer requested investment suggestions here, but not knowing all the facts. --- I'll us a dual income couple, baby boomers consideration: What are a few possibilities at age 62, assuming folks at this age have a grasp of their total financial status at age 62?
1. debt level and recurring monthly payments? 2. company pension available? 3. 401k/403b, etc. rolled to an IRA? 4. Roth IRA's? 5. known inheritance forthcoming? 6. inherited health? 7. post retirement spending; travel, sit on one's arse and other? *** add your own variables The blended from above becomes a "net worth" from which to make a decision about SS participation age.
@Crash Our house received notice 3 years ago about someone else attempting to claim against our IRS tax filings. We each now receive 6 digit PIN numbers to file with our taxes going forward. Does this upset us? Yes. Do we blame the IRS directly? No. Perhaps the government overall if they no longer have the ability to protect such events. But, the proof from us to protect ourselves was also part of the process to resolve the situation.
You, too; should have been able to provide evidence of your SS contributions. Perhaps this was the case; and there were errors otherwise. With the amount of fraud in place in many areas of gov't. benefits; you should not be disappointed or surprised that procedures are in place to verify information. One must be proactive and work with these folks, yes? I will presume that you verified your annual W-2's and/or reviewed the SS "statement of earnings and benefits" that you should have received on an annual basis indicating FICA payments from both yourself and employer. I understand that your particular form of employment was a small percent of the overall population; but this data would exist in one form or another regardless, not unlike other forms of employment. Hoping that all works well going forward; and to keep in mind that the folks doing this work are not on a mission to catch you doing someone funny and are not assholes.
And yes, this household has decades of tax/FICA related documents to provide any future evidence, as needed. Be well. Catch
I've had a Disney world like interaction with the Social Security Admin. I planned to start collecting at 62 for reasons others had listed but more to the point, the time/health value of the extra cash.
However, with a birthday in October, I elected to begin payments in January. I was on my way to Beal garden one football Saturday when I received a phone call from a lady at the SSA wanting to verify that I was waiting until January and not starting on my birthday.
Collect now or later is one of those functions of wealth questions that mean different things to different people. It's not unlike the long term care question - should I buy it? Not sure if these are still the parameters but less than $1M - NO; $1-5M YES; over $5M NO. The former - just go on Fed Assist. Over $5M - you don't need it. Only between do you have something to protect.
As I recall (off the top of my head), SSA will back date your SS benefits up to six months (but not earlier than your 62nd birthday) unless you tell them not to. That's why you got the call.
Several years ago I was invited to listen in on a phone presentation by a professional association about long term care. At the time, the range they suggested for LTC was a bit lower on the high end. Can't remember any more the precise figures, but what you wrote looks like the right ballpark.
@Derf, Googled your question. Here is the answer. Credit for wages, no extra in payments.
Showing results for do veterans get more social security payments Search instead for do vetrans get more social security payments
Search Results Featured snippet from the web A: When veterans apply for retirement or disability benefits, Social Security checks their records. If they have qualifying military service, they get credit for additional wages for their military service. These credits are added to the veteran's lifetime earnings record — not to the veteran's monthly benefit check.
Yes, no extra payment, simply counting the SS contributions made while in the military. In the case of our generational cohort, those of us who served in the military, typically right out of high school, in fact had our SS cards and accounts established for us by the military.
Comments
******************************************************
Here's something else which I think I've not mentioned here before at MFO: According to SSA, when I was in the midst of filing to begin SS monthly payments, I was warned I would have to accept reduced benefits, because a number of my work positions, in the years I was earning the most, were "uncovered."
Uncovered means that the employer didn't "cover" you by paying in. If the SSA doesn't see a record from the employer, then the wonderful, gorgeous and outstanding SSA employees just figure that those particular jobs just don't count, in terms of calculating your monthly benefit.
I had multiple phone calls with them, telling me I should be prepared to get less than I figured I might. Once, I was at the lake fishing, getting away from PEOPLE, and they called. I said, "you have no new information? You just called to upset me?" Ya, they did.
Throughout all of this junk, I repeated to them over and over that I had indeed paid-in. ALWAYS.
Have I mentioned yet that the worst thing in the world is a lie? And that I was being treated as a liar? Finally a Superv. called to say I ought to come in, in person, with 2010 and 2011 tax returns. He found the item which confirmed for him that I had indeed paid-in. Of course, he was using those two as a representative slice of my history. Suddenly, my still pending monthly benefit went up by $500.00.
He apologized, sort of, for being so suspicious, and not believing me until then. Then he gave me a phone number to call if, after 5 years or so, the account is audited and questions arise. Sounds like it MIGHT be the case, a few years from now, that SSA may demonstrate that they don't trust their own workers, including Supervisors. The very prospect of this happening is... um..... bullshit.
SAVE YOUR TAX RETURNS!!! DON'T GET SHORTCHANGED.
By the time I get there everything likely run out and govt could be in bankruptcy the rate we are going in ~19+yrs Togo... lol... But if it still there I would consider claiming asap before it is all dried up
Also if someone served in armed forces I believe you get a (bonus) amount added into yearly total. This is something I need to check into before I start drawing in a few months.
Have a very good week, Derf
You can always get your report here:
https://www.ssa.gov/myaccount/statement.html
The topic of SS is always of consequence for someone or a family on any given day of the week.
--- the link was picked by "magicvalley" from a MotleyFool write. The Fool has had numerous stories related to the SS area over the years. However, I'm not registered at the Fool and won't be; so I'm not able to discover the "secrets" mentioned at the end of all of their SS related posts.
--- if you think that the government is going to become bankrupt (meaning fail) and/or SS is going to be deplete of any money for you and yours in the next 20 years; your best choices would be to form a small group of trusted friends to prepare for issues more serious within society than whether SS monies would be available.
--- if the government fails, I suggest the other likely events would be that any remaining company pension programs, 401k's/IRA's or other personal retirement accounts would also become worthless. One's saving grace could be that these accounts remain intact; but worth less, as the government devalues the currency at 10 or 20 or 30:1 of today's value.
Lastly, as to when folks start to access SS; well, too many variables, yes? Not unlike attempting to offer requested investment suggestions here, but not knowing all the facts.
--- I'll us a dual income couple, baby boomers consideration:
What are a few possibilities at age 62, assuming folks at this age have a grasp of their total financial status at age 62?
1. debt level and recurring monthly payments?
2. company pension available?
3. 401k/403b, etc. rolled to an IRA?
4. Roth IRA's?
5. known inheritance forthcoming?
6. inherited health?
7. post retirement spending; travel, sit on one's arse and other?
*** add your own variables
The blended from above becomes a "net worth" from which to make a decision about SS participation age.
@Crash
Our house received notice 3 years ago about someone else attempting to claim against our IRS tax filings. We each now receive 6 digit PIN numbers to file with our taxes going forward. Does this upset us? Yes. Do we blame the IRS directly? No. Perhaps the government overall if they no longer have the ability to protect such events. But, the proof from us to protect ourselves was also part of the process to resolve the situation.
You, too; should have been able to provide evidence of your SS contributions. Perhaps this was the case; and there were errors otherwise. With the amount of fraud in place in many areas of gov't. benefits; you should not be disappointed or surprised that procedures are in place to verify information. One must be proactive and work with these folks, yes?
I will presume that you verified your annual W-2's and/or reviewed the SS "statement of earnings and benefits" that you should have received on an annual basis indicating FICA payments from both yourself and employer. I understand that your particular form of employment was a small percent of the overall population; but this data would exist in one form or another regardless, not unlike other forms of employment.
Hoping that all works well going forward; and to keep in mind that the folks doing this work are not on a mission to catch you doing someone funny and are not assholes.
And yes, this household has decades of tax/FICA related documents to provide any future evidence, as needed.
Be well.
Catch
I've had a Disney world like interaction with the Social Security Admin. I planned to start collecting at 62 for reasons others had listed but more to the point, the time/health value of the extra cash.
However, with a birthday in October, I elected to begin payments in January. I was on my way to Beal garden one football Saturday when I received a phone call from a lady at the SSA wanting to verify that I was waiting until January and not starting on my birthday.
Collect now or later is one of those functions of wealth questions that mean different things to different people. It's not unlike the long term care question - should I buy it? Not sure if these are still the parameters but less than $1M - NO; $1-5M YES; over $5M NO. The former - just go on Fed Assist. Over $5M - you don't need it. Only between do you have something to protect.
and so it goes,
peace,
rono
Several years ago I was invited to listen in on a phone presentation by a professional association about long term care. At the time, the range they suggested for LTC was a bit lower on the high end. Can't remember any more the precise figures, but what you wrote looks like the right ballpark.
thanks , Derf
Info for military service credits related to SS is HERE.
Derf
and so it goes,
PEACE,
rono