Social Security One leg of Retirement stool

[hurleyjd]

Here is a great article on retirement and where most retirees get their income. You have to plan ahead the quicker the better. Open all of the blue highlighted areas and read on them. Most of the legs on my stool are the same length. But I do have some non preforming assets that are mostly tied up in land that does not do very much for me. But I think that this year I will try to re-blance my retirement stool. And also try helping the kids with one leg of their stool.

https://www.cnbc.com/2020/01/17/heres-where-most-americans-are-really-getting-their-retirement-income.html?recirc=taboolainternal

 

[Stocker Steve]

We are in the midst of a huge experiment on self managed retirement planning. The 401K thing works great for a small minority of the population, who can then use these savings to delay signing up for SS, and thus increase their SS benefit. The rest will have to vote for someone who promises them more free stuff, or run more cows. :cboy:

 

[Caustic Burno]

We are in the midst of a huge experiment on self managed retirement planning. The 401K thing works great for a small minority of the population, who can then use these savings to delay signing up for SS, and thus increase their SS benefit. The rest will have to vote for someone who promises them more free stuff, or run more cows. :cboy:

My financial guy says take your SS as soon as you can. I agree if you wait till full retirement age you will have to draw until 82 to break even.

 

[shaz]

I'm expecting half from SS and the rest from my 401k. Hoping to keep raising cows and let the kids inherit the land. My guess is they'll sell out within a year of my death.

 

[shaz]

We are in the midst of a huge experiment on self managed retirement planning. The 401K thing works great for a small minority of the population, who can then use these savings to delay signing up for SS, and thus increase their SS benefit. The rest will have to vote for someone who promises them more free stuff, or run more cows. :cboy:

My financial guy says take your SS as soon as you can. I agree if you wait till full retirement age you will have to draw until 82 to break even.

The logic is that you'll draw more in those early years than the increased benefit helps. Problem is health insurance.

 

[Brute 23]

Prior generations did not have access to the info on finances that we do today. They were sold on the idea that social security or a pension was a retirement plan. It is obviously not.

As a young person there is no excuse to end up in the same boat. Information is just a click away and any one with a smart phone can set up a retirement account. You can go to Fidelity, etrade, and any of the other investing companies and they will walk you thru step by step how to set up retirement accounts. They will link them to your checking account and pull the money automatically. On top of that, if you use H&R block, Turbo Tax or any of those they will download the info right in to the proper place on the form for you.

It does not get any easier that... no excuses. $25, 50, 100 a month will change your life if you start young.

 

[herofan]

As a KY teacher, we don't get SS; we get the KTRS. I plan to retire at 55, which is three years away, and just roll with it.

 

[Caustic Burno]

Prior generations did not have access to the info on finances that we do today. They were sold on the idea that social security or a pension was a retirement plan. It is obviously not.

As a young person there is no excuse to end up in the same boat. Information is just a click away and any one with a smart phone can set up a retirement account. You can go to Fidelity, etrade, and any of the other investing companies and they will walk you thru step by step how to set up retirement accounts. They will link them to your checking account and pull the money automatically. On top of that, if you use H&R block, Turbo Tax or any of those they will download the info right in to the proper place on the form for you.

It does not get any easier that... no excuses. $25, 50, 100 a month will change your life if you start young.

The problem is people.
I went years ago and listened to a leading economist. He said you could take all the money from everyone and start them at 1k. Bill Gates or Bezo etc would still be rich and the guy living under the overpass would be there.
Point is some people can manage money most can't.

 

[herofan]

Prior generations did not have access to the info on finances that we do today. They were sold on the idea that social security or a pension was a retirement plan. It is obviously not.

As a young person there is no excuse to end up in the same boat. Information is just a click away and any one with a smart phone can set up a retirement account. You can go to Fidelity, etrade, and any of the other investing companies and they will walk you thru step by step how to set up retirement accounts. They will link them to your checking account and pull the money automatically. On top of that, if you use H&R block, Turbo Tax or any of those they will download the info right in to the proper place on the form for you.

It does not get any easier that... no excuses. $25, 50, 100 a month will change your life if you start young.

The problem is people.
I went years ago and listened to a leading economist. He said you could take all the money from everyone and start them at 1k. Bill Gates or Bezo etc would still be rich and the guy living under the overpass would be there.
Point is some people can manage money most can't.

I've noticed that with a lot of people, it's not even about money management skills; they don't even want the skills. They have to keep up with the Jones, and the concept of having a hunk of money that you have no immediate plans for is a crazy idea to a most folks. Most people have this "you can't take it with you" mentality.

 

[hurleyjd]

Prior generations did not have access to the info on finances that we do today. They were sold on the idea that social security or a pension was a retirement plan. It is obviously not.

As a young person there is no excuse to end up in the same boat. Information is just a click away and any one with a smart phone can set up a retirement account. You can go to Fidelity, etrade, and any of the other investing companies and they will walk you thru step by step how to set up retirement accounts. They will link them to your checking account and pull the money automatically. On top of that, if you use H&R block, Turbo Tax or any of those they will download the info right in to the proper place on the form for you.

It does not get any easier that... no excuses. $25, 50, 100 a month will change your life if you start young.

The problem is people.
I went years ago and listened to a leading economist. He said you could take all the money from everyone and start them at 1k. Bill Gates or Bezo etc would still be rich and the guy living under the overpass would be there.
Point is some people can manage money most can't.

I suspect you and I have more in common than you might think.

 

[ChrisB]

Prior generations did not have access to the info on finances that we do today. They were sold on the idea that social security or a pension was a retirement plan. It is obviously not.

As a young person there is no excuse to end up in the same boat. Information is just a click away and any one with a smart phone can set up a retirement account. You can go to Fidelity, etrade, and any of the other investing companies and they will walk you thru step by step how to set up retirement accounts. They will link them to your checking account and pull the money automatically. On top of that, if you use H&R block, Turbo Tax or any of those they will download the info right in to the proper place on the form for you.

It does not get any easier that... no excuses. $25, 50, 100 a month will change your life if you start young.

The problem is people.
I went years ago and listened to a leading economist. He said you could take all the money from everyone and start them at 1k. Bill Gates or Bezo etc would still be rich and the guy living under the overpass would be there.
Point is some people can manage money most can't.

That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck. Then when they hit retirement age, the 50% of savers/investors will be fine and the other 50% will have to get some kind of government support for them to live. It will be another way to punish the responsible.

 

[Stocker Steve]

But once you are in your sixties - - the odds are you or your wife will live well past 82, so why not go for the risk free increase in SS benifit?

 

[Brute 23]

Prior generations did not have access to the info on finances that we do today. They were sold on the idea that social security or a pension was a retirement plan. It is obviously not.

As a young person there is no excuse to end up in the same boat. Information is just a click away and any one with a smart phone can set up a retirement account. You can go to Fidelity, etrade, and any of the other investing companies and they will walk you thru step by step how to set up retirement accounts. They will link them to your checking account and pull the money automatically. On top of that, if you use H&R block, Turbo Tax or any of those they will download the info right in to the proper place on the form for you.

It does not get any easier that... no excuses. $25, 50, 100 a month will change your life if you start young.

The problem is people.
I went years ago and listened to a leading economist. He said you could take all the money from everyone and start them at 1k. Bill Gates or Bezo etc would still be rich and the guy living under the overpass would be there.
Point is some people can manage money most can't.

No doubt but there are some people, as few as it may be, that want to do it and just dont know how.

 

[Brute 23]

Prior generations did not have access to the info on finances that we do today. They were sold on the idea that social security or a pension was a retirement plan. It is obviously not.

As a young person there is no excuse to end up in the same boat. Information is just a click away and any one with a smart phone can set up a retirement account. You can go to Fidelity, etrade, and any of the other investing companies and they will walk you thru step by step how to set up retirement accounts. They will link them to your checking account and pull the money automatically. On top of that, if you use H&R block, Turbo Tax or any of those they will download the info right in to the proper place on the form for you.

It does not get any easier that... no excuses. $25, 50, 100 a month will change your life if you start young.

The problem is people.
I went years ago and listened to a leading economist. He said you could take all the money from everyone and start them at 1k. Bill Gates or Bezo etc would still be rich and the guy living under the overpass would be there.
Point is some people can manage money most can't.

That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck. Then when they hit retirement age, the 50% of savers/investors will be fine and the other 50% will have to get some kind of government support for them to live. It will be another way to punish the responsible.

We dont need to do away with it but we do need to privatize it. The govt can set up a mandated retirement plan with low risk investments and group it just like IRAs. Make it part of your taxes with penalties for not paying or just pull it like they do now.

The problem is it's become mandated welfare that is in the hole and the ponzi scheme only continues if you get new money in.

 

[Caustic Burno]

The problem is people.
I went years ago and listened to a leading economist. He said you could take all the money from everyone and start them at 1k. Bill Gates or Bezo etc would still be rich and the guy living under the overpass would be there.
Point is some people can manage money most can't.

That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck. Then when they hit retirement age, the 50% of savers/investors will be fine and the other 50% will have to get some kind of government support for them to live. It will be another way to punish the responsible.

We dont need to do away with it but we do need to privatize it. The govt can set up a mandated retirement plan with low risk investments and group it just like IRAs. Make it part of your taxes with penalties for not paying or just pull it like they do now.

The problem is it's become mandated welfare that is in the hole and the ponzi scheme only continues if you get new money in.

That's SS 2.0.
The problem is the government.
Ike went into SS to bail out the post office. LBJ tore the lid off and emptied it to pay for the Great Society.
Had politicians left it alone it would be flush with cash.

Here in lies the problem politicians and our cash= mismanagement and corruption every time.

 

[shaz]

That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck. Then when they hit retirement age, the 50% of savers/investors will be fine and the other 50% will have to get some kind of government support for them to live. It will be another way to punish the responsible.

We dont need to do away with it but we do need to privatize it. The govt can set up a mandated retirement plan with low risk investments and group it just like IRAs. Make it part of your taxes with penalties for not paying or just pull it like they do now.

The problem is it's become mandated welfare that is in the hole and the ponzi scheme only continues if you get new money in.

That's SS 2.0.
The problem is the government.
Ike went into SS to bail out the post office. LBJ tore the lid off and emptied it to pay for the Great Society.
Had politicians left it alone it would be flush with cash.

Here in lies the problem politicians and our cash= mismanagement and corruption every time.

Did anyone ever get elected saying "I'm going to quit funding a bunch of stuff and pay down the debt"? I'll bet no one would vote for him/her . Too much is dependent on government over spending. We all act like the federal debt is not our debt.

 

[Brute 23]

That is exactly why it should be privatized. Politicians are using it for their campaigns and not what it was intended for.

 

[hurleyjd]

That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck. Then when they hit retirement age, the 50% of savers/investors will be fine and the other 50% will have to get some kind of government support for them to live. It will be another way to punish the responsible.

We dont need to do away with it but we do need to privatize it. The govt can set up a mandated retirement plan with low risk investments and group it just like IRAs. Make it part of your taxes with penalties for not paying or just pull it like they do now.

The problem is it's become mandated welfare that is in the hole and the ponzi scheme only continues if you get new money in.

That's SS 2.0.
The problem is the government.
Ike went into SS to bail out the post office. LBJ tore the lid off and emptied it to pay for the Great Society.
Had politicians left it alone it would be flush with cash.

Here in lies the problem politicians and our cash= mismanagement and corruption every time.

The SS trust fund at the end of 2018 had 2.8 trillion in it. The money used for other government operations was borrowed and a special interest bearing bonds were placed in it. These bonds are drawing about 2.5% interest at the time. There are short term bonds and 20 year long term bonds.

 

[farmerjan]

I have talked to several "financial consultants" and more and more are saying to start SS sooner rather than later. It all depends on what the difference is in what you get at 62, full retirement like mine @66, or 70. But Caustic is right, it takes an average of 8-12 years to "break even", less money at 62 but you will be ahead of the game until at least 72 or so. The thing of it is, a couple of advisors ; and interestingly enough they are all women, have said to take it sooner and take less than to wait. They have all said, what if you die at 70 or even 80.... and if you take it and still work some, then you will have a better quality of life while you can enjoy it.
I sat down with the SS lady before I turned 65 to get some advice, and figures and because of the medicare part A sign up. She said she could not give me advice, but could give me all the options and that I could make up my mind as to what would benefit me.
My family is long lived... lots of 80's 90's and some 100's. So alot of years on SS that by taking it sooner, I would eventually get less than if I waited and took it later and got more. But, how healthy will I be and how much will I be able to take advantage of the increased amount?
What if I die at 80? How much less would I get total? I have opted to take it "sooner" , not by alot, but I don't have a very big 401K at work either and that I am trying to not touch until I have to. I am still working some, and my SS is 2/3 of what I made monthly on average, so I am actually a little better off now. I have a good supplement ins along with my medicare and am paying less than I did while working and have better coverage with next to no deductibles.

If you don't need the SS, I would still take it, put it in a Roth IRA and put it into some investments that are not too risky. Then if something did happen to you, at least that much would not be forfeit back to the gov when you die.
Our Gen mgr retired at 65, thinking he was doing things right as advised. 4 months later he dropped dead of a heart attack and it financially hurt his wife's income for the future. He had been talking about starting his SS sooner and was advised not to.....He would have had some of that extra put away if he had.

I live very modestly and don't have any real desire to do alot of traveling, but a few places I would like to see. I can do that on what I am bringing in with part-time work and SS. My cattle income is extra, although not real great amounts. If prices go up as I think they will do in another year or 2 then I will sell down at least half of mine and bank that money. I also don't have grandkids to spend money on, but I was not brought up to spend money all the time either. Right now I am saving a little of the SS and I have spent some on some things I have wanted rather than wait.
I am not sorry that I started mine a little early, and think I should have started it sooner.

 

[Caustic Burno]

But once you are in your sixties - - the odds are you or your wife will live well past 82, so why not go for the risk free increase in SS benifit?

It's not risk free, the risk is life.
My older sister waited to draw.
She was healthy caught the flu turned to pneumonia and died two years ago this month at 73.