I was fortunate that my reaching 65 and medicare fell into place as I was going to lose my full time status at work and therefore my insurance and full-time benefits. I waited until Jan of this year, as if you wait to take your "SS" in the year you qualify for "full retirement" which for me is 66, you can earn up into the 40,000 range. If you take it sooner, you have to give back 1 out of every 2 you get from SS over something like 17,000. I am using round figures. So by waiting til Jan 2019, the year I turn 66, I do not have to worry about making too much money at a job. Besides I never made over 30,000 in a year testing cows anyway. With farmers selling out and many testing less often, the handwriting was on the wall, and I was scheduled to lose my full time status the end of Dec 2018.
I talked to a financial planner several years ago, and they were pushing the work longer thing. I had/ and still have a very small amount in a 401K at work that they match a certain amount so I continue to contribute to that for as long as I can. But then one of my friends told me her financial advisor told her to take SS as soon as she could at 62.5. She also said that it would take something like 12 years before she would come out even in the $ by taking it earlier and getting less, or waiting and taking it later and getting more. She has diabetes, so it made sense to take it sooner, and her husband had died at a young age of like 55 so she had seen what that could mean.
So then I talked to the SS lady when I made an appointment to see what my options were. I was 64 1/2, then I think. She said of course she could not advise me. But gave me a chart that showed what I would get for each month I waited and how much it would amount to etc. and so on. She is the one who told me about the waiting to the year I turn 66 to be eligible for the increased income thing. So as it was falling apart at work slowly, I went back to SS in Sept of 2018 when I turned 65, got signed up for medicare and re-explored my options. That is when it seemed to make sense to wait until Jan of 2019, the year I am eligible for "full-retirement" at 66, and start taking it. I will never earn over the threshold so have no worries of SS taking anything "back" for over earning.
If I waited the extra 9 months from Jan to Sept, I wouldn't have gotten but about $50 /month more (can't really remember but it wasn't much). It would take til I am 78 to come out even, then I will get less over my lifetime by taking less. But what if I don't live as long as the family genes says? I can't set it up to benefit my son, only a spouse.... and I figure I have worked pretty hard for all they have taken, so I might as well get it now.
The 401K has done decent except when we all lost so much in 2008. I only ever put in the minimum that was matched as there just was never alot of income and I needed it to pay bills. Plus I didn't start testing cows until I was 38, and never had any retirement or 401 K before that. I have it in some pretty conservative stuff now, and it grows slowly. As long as I can, I will continue to contribute to it, and get the company match. It will only give me a couple hundred a month added income the way it is set up now, and since I don't need it now, not going to take it until I have to. The plan was for the cows/calf sales to supplement me some. I have slowly kept a few heifers here and there and added to "my herd" within our cattle operation. I planned to have it to average out to 2 calf sales a month - 24 calves a year- to be my extra income over and above SS. I also have the nurse cows that have to raise 3 calves a year based on dairy/holstein steer sales at $.50-.60 /lb. to make me any money.... 2 calves pay for the cow's costs and the 3rd is "profit".
I have tried to always figure low on my income side of the cattle sales. I don't actually "pay for" my cows' board on the farm...I work for "nothing" in exchange for their board and contribute to mineral costs and a couple of vet/pregnancy checks which is certainly not getting any cheaper!!!! I also buy my own grain for my nurse cows and creep feeding any calves at the one place.
I realize that the cattle prices have really gone south, and that it might not be a very good way to make any extra money... but one thing, I will always have beef in the freezer to eat if it gets too bad. And that is a bargaining chip too if too many people get to where they are in need of work and there is no money. Can pay help in beef.....
I have a garden normally, and can alot, and preserve food for the future. I will eat if nothing else, as long as I have some health that I can get out and do it.
I don't have any big desires to take trips, although I would like to go out west to see some sights, and see some people that I have gotten to know over the years. Like maybe a month or so a year for a couple of years.... once I get my ankle and knees worked on to where I can walk better. I live simply and just don't need alot. Don't have any grandchildren to spend money on and I am not much of a shopper.
Don't need a new vehicle, and all mine are paid for.
Don't know if I have it figured out but this seems to be my plan for the future. I have a good supplement ins along with the medicare, so hope that will take care of the worst. If there is a catastrophic event, I guess we will deal with it as best we can. I can survive on my SS and the added extra from the 401k, without too much hardship because I live simply.
