Retirement Targets
- Thread starter yowza
- Start date
I know this was to point out how bonds are doing in the current environment, but it's impressive PFG's sp500 fund is down 3% while that index is down .5%... I'm guessing the .5% expense ratio doesn't help
I think my goal would be to retire mid-50's, but I think if I do so I'll be back at work within a few years bored out of my mind
Hope it is a decent company. Deny. Deny. Deny. From many people I know. One example is an individual who paid premiums for decades and is now 100 and needs care now. They denied the claim. The fight continues. And the legal costs are not cheap. Insurance companies suck.
No pictures please...Now let's talk about colon screenings and prostate checks, lol.
Thoughts at pulling SS at age 62 vs. 67? Will there still be social security long enough to make waiting until 67 to get the "full" amount? My parents are 61 and planning to start pulling it at 62 for that reason.
I personally think the government will continue going into debt to keep the program going (I think it's currently planned to "run out" in 2035 timeframe), but I don't know how that affects payouts and I don't know that I would fully trust the government to do things that benefits people...
I personally think the government will continue going into debt to keep the program going (I think it's currently planned to "run out" in 2035 timeframe), but I don't know how that affects payouts and I don't know that I would fully trust the government to do things that benefits people...
Everything I have read says pull it on day 1, if you don't need it, invest that money and it would take to living to be 100 till that is the wrong decision.
One of my main retirement activities will involve sitting outside in the summer with some tunes on and a cold Bud in hand. Simple, cheap and relaxing.
If this is true what are CD's then? My parents are the most risk averse people I know, and have had money in CD's since forever. They are fine with it, but good lord they've lost a lot of value to inflation.
Truer words have never been posted on the internet.....
SS never “runs out”. In 2035 the SS surplus is exhausted and then if nothing is done then it is pay in payout which is projected to be 80% of scheduled benefits. Take off the cap on earned income subject to SS and it is pretty much resolved.
I am waiting till full retirement age to take SS as I would be hit by the SS benefits being reduced because of my earnings being above threshold before retirement age. The math works better for me. And my spouse may get the greater of half of my benefit versus her own full benefit. So the rate of return by waiting is about 12% per year instead of 8%. If I die, so be it. At least my estate won’t get eaten up by the nursing home. Kids will get plenty. I won’t need money when I am dead. Also not planning to tap into IRA’s till I have to because I don’t need to. Let it build.
3 million is the target plus assume a little from SS (not depending on it) plus a significantly reduced pension due to early retirement. I estimate my age to hit this is around 50-52. May work a few years more but will have the retirement card when/if needed. My wife may work part time a little longer and I’ll likely find some other part time income but outside the traditional work methods like corporate America.
Ah yes, CDs. The only purpose for which is a slightly better rate than zero right now.
I am sure everyone would figure this out at the time, but the current limit in earnings prior to FRA is $18,240. There is a one time rule in place that factors in during the year you retire. Only during that year you are not penalized for your annual earnings exceeding the set annual limit. Once you are retired though, you cannot exceed 1/12th the earnings limit ($1520) during any month you receive SS or you forfeit your entire SS for that month. Beginning the next full year after you retire, the monthly goes away and it is strictly an annual limit (you could earn the full $18k in one month as long as the rest of the year is zero). Example: you retire in August and have already earned $58k. Although that is way over the $18k limit you will receive full SS checks as long as you do not earn more than $1520 during any of the remaining months of that calendar year.
https://www.ssa.gov/pubs/EN-05-10069.pdf
Charles Schwab has some thoughts on this. Not sure how qwerty arrived at his calculations concerning break even age.
https://www.schwab.com/resource-center/insights/content/when-should-you-take-social-security
That chart and almost every chart/figure quoted by financial advisors is SS benefits only. It does not account for you spending your own dollars instead of SS dollars. The chart is accurate . . . . for SS benefits. The spreadsheet I show is one I found online but I have ran many situations through it and believe it is in the ballpark. If you set the investment gains to zero the breakeven age comes down to the 76-78 range.
But I fully get the wait and take it later mentality too. That is where I was until I dug into it more. I will be in a position that financially I could wait and take it at FRA or later but with a lower life expectancy I am convinced that FOR ME, earlier will be better. And if by some chance I do live to 90, the difference is minimal due to investment gains. I will show the full screen tomorrow (file is on laptop at work) that shows each option by year so you can see differences at any age. By minimal, I mean that over the 28 years of smaller early payments and investment gains vs larger later payments and opportunity cost the difference in total income is less than $50k. So, for less than $2k per year you are gambling that you are going to live that long. I just don't feel it for myself.
Now if you want to keep working or will be earning a substantial amount from other sources during age 62-67 obviously you will delay SS until a later age.
Yikes how much a year do you have to save to hit $3M by 50? I have maxed out my 401k every year since I started working and I am no where near that.
