Social Security at 62 - where to deposit funds?
YodaRules
11 years ago
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Comments (20)
sushipup1
11 years agolast modified: 9 years agoYodaRules
11 years agolast modified: 9 years agoRelated Discussions
Social Security-Market
Comments (25)There is no trust fund. There are a lot of IOUs sitting around that will be very difficult to redeem without new taxes. Not making the last round of tax cuts permanent would go a long way toward solving the problem. It is the same old "Let's look like the good guys and let the next guy take the fall" routine. As I understand the plan currently being considered, people would not have a choice about paying into a stock account and would only have the ability to choose among 3 - 4 different stock plans which they would NOT manage. They would be managed by firms appointed by the government. How much corruption do you think that plan is good for? Quite frankly what do you think the combined effect will be of lowering the capital gains tax, lowering the tax on dividends, and artifically inflating the stock market because everyone is forced into it. Call me a pessimist, but I think this will be the biggest money grab by the rich that this country has ever seen, which is saying something. With the stock market artificially inflated, rich stockholders can get out and leve the rest of us holding the bag when reality sets in. One political pundit asked a very interesting question: If investing social security money in the stock market is such a good idea, why doesn't the government do it? The obvious reason is that they don't want to give us a defined benefit. We are to shoulder all of the risk even though we will have minimal control. I really hate that the package is being sold to younger workers as a way to get out from under supporting their elders. It sounds great! Why should they have to spend their income supporting fogies? Maybe because we supported our grandparents and then our parents. Maybe that's why. Setting up generational conflict is a nasty campaign trick. That sort of thing is done all the time. We are made to argue amongst ourselves who is worthy of welfare, forgetting that what we should be doing is figuring why in this wealthy nation of ours there isn't enough money to go around....See Moreunexpected early retirement and Social Security
Comments (6)Abby1930, In some pension systems, your contribution toward your pension is a percentage of your annual income and your pension at retirement relates to the amount that all of those years' contributions totalled out to, plus the amount of growth that all of those invested dollars produced throughout the period. I hope that you can find some source of income which will be such that you can continue to enjoy your new home. Lay-offs have become an increasingly common problem in the economy these days, where many companies feel that employees are as disposable as the machines that they use. Should we call such an approach "Kleenex staffing"? They like loyalty on the part of staff - but if it isn't a two-way street, that rather traditional loyalty situation will be eroded. In fact - it is, these days. Few employees feel as loyal to their employer as was true a generation ago. Telecoms have certainly been volatile in recent years - and increasingly so? While talking to my recently laid-off daughter (who had for several years been a counsellor to people being laid-off), she said that she'd like to have two or even three streams of income - so that she wouldn't be up the creek without a paddle if she suffered lay-off, having depended totally on one income. She's a rather independent-minded person. Who was able to carry on her recent work wherever she happened to be - all that she needed was a higher-grade connection to the internet. She used so much bandwidth that one couldn't call her and have the call go through while she was using the line for corporate-related internet work, as one can do with most internet users using high speed connection. Good wishes to you as you work through your situation in the days ahead. joyful guy P.S. to others: If you should find yourself in this situation (say, next week?) - wouldn't it ease your concerns a great deal if you knew that you had enough assets rather easily available to enable you to survive without too much upset should you, having suffered the trauma of lay-off, find yourself unable to find other work for half of or even a whole year? Personal financial advisors for many years have been recommending 3 - 6 mos. emergency fund to enable minimum survival. Such a plan is much more necessary in the employment climate, these days. Don't you think? I remember a song that was popular when I was young, ... "Wishing, will make it so, just keep on wishing, and care will go." "Dreamers tell us dreams come true, it's no mistake and wishes are the dreams we dream while we're awake". Baloney. Visioning has its place. So do dreams - and wishes. The problem is that quite a number of us allow the dreams and wishes to take the place of reality, rather than encouraging and impelling us to implement them - to change them from a figment of our imagination into a real part of our lives. Dream the dream - then make it work. ......See MoreSocial Security Question
Comments (48)Go see your Social Security Office. You'll should call and make and appointment first. As other posters have said, the rules are many. If you have also worked and paid social security taxes, that will be considered. Basically, the amount you might get is computed in several ways and then the maximum benefit one is used. The various cases may be (1) your wages and lifetime contribution alone, ( 2) 50% of your spouce's amount, or (3) if disabled, the disabled amount. If you were born after a certain date, the full retirement age is increased above 65. At one time, the full retirement age was to increase in steps from 65 to 67. I have been retired long enough to have lost track of the current rules. If you are elgible at age 65 for full retirement, you can take early retirement (as early as 62) with a reduction in payments. The reduction is based on the average life expectancy. When I retired, life expectancy was age 77, e.g., half of your population group will have expired by age 77. The reduction works out to be 5/9 percent per month early, thus if you retire 3 years early, the reduction is (36 months x .05)/9 or 0.20 which is 20%. Is this bad? It depends on how long you will live. If you do not expect to live beyond 77, then early retirement is not a loss. You loose only if you live beyond 77. Here's why. If you retired at the normal age of 65, then the time span to 77 is 12 years; if retired at age 62, the time span to 77 is 15 years. Check it out. You'll find that the total money paid out over the longer time is exactly the same as that of the shorter span. For example, suppose the normal payout was $100 per month. The amount for 12 years is 12 x 12 x 100 = 14,400. Now suppose that you retired 3 years early. The payout is $80 per month. The amount for 15 years is 15 x 12 x 80 = 14,400. After age 77, the early payout plan is less than the other and the difference increases each year. Since I retired, life expectancy may have increased to 78 years. These calculations give amounts based on the current value of the dollar. As time goes by, there are COLA increases that will increase the payout to offset inflation to some degree. In my experience, the SS cost increase numbers do not fully cover the real inflation of the basics....See MoreSmall Social Security COLA this time
Comments (11)chisue, take another look at how Social Security benefit amounts work, it's not how you say. As an example, just to keep the numbers simple, let's say a person qualifies at age 62 and starts then. They get 75% of the amount they'd get at 66. Real numbers, let's say it's $7500 at year at 62 and it would have been $10000 at 66. By waiting, they're getting a higher amount, yes, but that's not "a return on their investment". What they passed up getting was $7500 per year for 4 years = $30,000. It takes a lot of years with that $2500 increase (which will get cost of living adjustments) to equal the $30000 they passed up. If you factor in interest cost, for someone who isn't working, unless they feel confident to live to a ripe old age, taking it sooner can be better. See what I mean?...See Moresushipup1
11 years agolast modified: 9 years agoazzalea
11 years agolast modified: 9 years agoYodaRules
11 years agolast modified: 9 years agoazzalea
11 years agolast modified: 9 years agovnw232
11 years agolast modified: 9 years agosushipup1
11 years agolast modified: 9 years agoemma
11 years agolast modified: 9 years agosherwoodva
11 years agolast modified: 9 years agosushipup1
11 years agolast modified: 9 years agosushipup1
11 years agolast modified: 9 years agosusieq07
11 years agolast modified: 9 years agojoyfulguy
10 years agolast modified: 9 years agoaputernut
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10 years agolast modified: 9 years agoemma
10 years agolast modified: 9 years agoMags438
9 years agolast modified: 9 years agoElmer J Fudd
9 years agolast modified: 9 years ago
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