US Social Security @ 62 or?

[HuskerDo]

15 minutes ago, meechai said:

For myself I started at 62 & have no regrets

 

my thinking roughly was  a projection I imagined (not my real number but for ease)

 

1- Avg age of death I'm guesstimating 83 if things go well

Start at 62 @ $1000. per month = 252k

Start at 66 @ $1300. per month = 265k ( not much difference)

Start at 70 @ $1600 per month = 249k is this a joke? No 13 years @ 1600 per = $249,600

 

These are not actually my numbers but the $300 more per age section is what SS was showing me at the time

I decided to take SS when I was 62 ( I stopped working at 56 & had no plans to return so amounts were static already)

 

2- One last small thing that may matter for some is if you make under 25k a year no income tax on SS

If over then Income tax will kick in some info below

https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html

 

More info.....

 

No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:

• file a federal tax return as an "individual" and your combined income* is
  • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.

o    more than $34,000, up to 85 percent of your benefits may be taxable.

• file a joint return, and you and your spouse have a combined income* that is
  • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits

o    more than $44,000, up to 85 percent of your benefits may be taxable.

• are married and file a separate tax return, you probably will pay taxes on your benefits.

*Note:

Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your "combined income"

[srowndedbyh2o]

And for those people that are continuing to work and trying to decide when is the best time to retire, I read someone else put it like this:

“People waiting to stop working are not delaying retirement, they are shortening retirement”.

[kynikoi]

1 hour ago, meechai said:

For myself I started at 62 & have no regrets

 

my thinking roughly was  a projection I imagined (not my real number but for ease)

 

1- Avg age of death I'm guesstimating 83 if things go well

Start at 62 @ $1000. per month = 252k

Start at 66 @ $1300. per month = 265k ( not much difference)

Start at 70 @ $1600 per month = 249k is this a joke? No 13 years @ 1600 per = $249,600

 

These are not actually my numbers but the $300 more per age section is what SS was showing me at the time

I decided to take SS when I was 62 ( I stopped working at 56 & had no plans to return so amounts were static already)

 

2- One last small thing that may matter for some is if you make under 25k a year no income tax on SS

If over then Income tax will kick in some info below

https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html

 

 

Thanks for your thoughts.

 

Effectively, there is no income tax on expatriates under 100k. Further, if one must live in US hope you'd also choose a state that does not tax SS.

 

Returning is always in the back of my head (healthcare here, Medicare there) but I don't want my wife to work for peanuts as well as pay into SS. Maybe if we have another housing crash it will look more appealing.

[Alk]

1 hour ago, HuskerDo said:

Well said Alk but $3000 seems like an awful lot to be spending over there. With a wife, maybe, but single? You must have REALLY been enjoying life. Good for you!!

You can definitely do it for less....just like in Thailand...that happened to be how much I had to spend, and that included 365 days my first year in very decent hotels.  Once I settled down with one woman and living in a condo, I was usually saving about $1000 a month from that budget, while still living a very comfortable life.

[flexomike]

11 hours ago, sirineou said:

The cost of living (COLA) for 2020    1.3 and it is projected to be the same for 2021 but who knows , Mine went up $20.60  LOL,   big woopty do!!

Hey that's a case of beer

[meechai]

42 minutes ago, kynikoi said:

 

Thanks for your thoughts.

 

Effectively, there is no income tax on expatriates under 100k. Further, if one must live in US hope you'd also choose a state that does not tax SS.

 

Returning is always in the back of my head (healthcare here, Medicare there) but I don't want my wife to work for peanuts as well as pay into SS. Maybe if we have another housing crash it will look more appealing.

 

Yes I remember that 100k figure from when we lived in Thailand

 

In our case we enjoyed our years there but after a few years of Junta felt it was time to come back here where we kept our home.

(was kind of nice as someone else paid it off thru renting it )

 

We also have a home in Thailand & still spend 3 months a year there...but skipped 2020 ...hope Covid is done soon & we can go back too

 

Yes a side note is Medicare is here for those 65 & up but also many dont realize most States will give you free Medicaid if you don't have health insurance or are under the income threshold & younger than 65 ....It only considers income not assets

something many don't know as they always say how expensive USA medical is but really it is available period if you need it...unlike Thailand

 

Housing crash may come again as things are crazy yes but.....my guess is with all the recent increase in money supply thru stimulus etc the dollar will be more & more devalued so prices will remain high albeit in devalued dollars

 

[EVENKEEL]

6 minutes ago, meechai said:

 

Yes I remember that 100k figure from when we lived in Thailand

 

In our case we enjoyed our years there but after a few years of Junta felt it was time to come back here where we kept our home.

(was kind of nice as someone else paid it off thru renting it )

 

We also have a home in Thailand & still spend 3 months a year there...but skipped 2020 ...hope Covid is done soon & we can go back too

 

Yes a side note is Medicare is here for those 65 & up but also many dont realize most States will give you free Medicaid if you don't have health insurance or are under the income threshold & younger than 65 ....It only considers income not assets

something many don't know as they always say how expensive USA medical is but really it is available period if you need it...unlike Thailand

 

Housing crash may come again as things are crazy yes but.....my guess is with all the recent increase in money supply thru stimulus etc the dollar will be more & more devalued so prices will remain high albeit in devalued dollars

 

If the income is generated through a US Co or assets, you pay federal taxes, regardless of where you call home.

[ubonjoe]

9 minutes ago, EVENKEEL said:

If the income is generated through a US Co or assets, you pay federal taxes, regardless of where you call home.

If working and living outside the US you can still claim the the $100k exemption or whatever it is now if working for a US company. I did it and claimed it several years ago. I also had no tax deducted from my income.

But to claim it you have to outside the US for total of at least 330 days for the calendar year claimed.

[EVENKEEL]

3 minutes ago, ubonjoe said:

If working and living outside the US you can still claim the the $100k exemption or whatever it is now if working for a US company. I did it and claimed it several years ago. I also had no tax deducted from my income.

But to claim it you have to outside the US for total of at least 330 days for the calendar year claimed.

I would imagine this rule doesn't apply if you own property in the USA such as rentals or a second home.

[Tug]

Personally I worked 2 years extra extra ss benefits +2 more years on my pension benefits +payed off 2 of my rentals works for me but then I’ve been called a workaholic before lol and I’m still busy I couldn’t imagine just living off my socalsecurty benefits I get the maximum btw just not enough good luck!

[Mansell]

Based on what you said it sounds like your mind is already made up. Personally I waited till I was 70 because that is the max you get and that was 7 years ago and I’m in great health.....of course we could all die tomorrow.....but tomorrow never comes! Ha ha ha. My ex girlfriend waited to 70 and is pulling down 3000 dollars a month......funnily enough a friend she helped in her dying process left her 700,000 dollars, which she never touches. If your still working and enjoying it, then wait, otherwise take it when you can. But remember you cannot see down the road and in ten years you might be wishing you had more and waited. Good luck.

[EVENKEEL]

1 minute ago, Mansell said:

Based on what you said it sounds like your mind is already made up. Personally I waited till I was 70 because that is the max you get and that was 7 years ago and I’m in great health.....of course we could all die tomorrow.....but tomorrow never comes! Ha ha ha. My ex girlfriend waited to 70 and is pulling down 3000 dollars a month......funnily enough a friend she helped in her dying process left her 700,000 dollars, which she never touches. If your still working and enjoying it, then wait, otherwise take it when you can. But remember you cannot see down the road and in ten years you might be wishing you had more and waited. Good luck.

My father worked till he was 71 in a manual labor factory job. My brother worked as a truck driver till age 70 and he had a boat load of money, he could have called it quits at 62.

 

Some guys keep working because they want time away from wives.

[ubonjoe]

28 minutes ago, EVENKEEL said:

I would imagine this rule doesn't apply if you own property in the USA such as rentals or a second home.

I had a house and family living in it when I did it.

They only consider the amount of time you spent in the states for the year. If they were to do a audit you would need to prove you were out of the country for the 330 days.

[Berkshire]

7 hours ago, NZAMBOY said:

 a child will receive an amount equal to 50% of your monthly SS payment until 18...when you die the payment will bump up to 75%...i know because i am now doing this...not the dead part hahaha!!!

What if you had a wife but divorced her and she's taking care of your child.  Is the ex-wife now entitled to SS for herself and the child?

[EVENKEEL]

1 minute ago, ubonjoe said:

I had a house and family living in it when I did it.

They only consider the amount of time you spent in the states for the year. If they were to do a audit you would need to prove you were out of the country for the 330 days.

I've been working around the world but always spent time in US each year, maybe why my accountant never brought it up.

[EVENKEEL]

2 minutes ago, Berkshire said:

What if you had a wife but divorced her and she's taking care of your child.  Is the ex-wife now entitled to SS for herself and the child?

Is she the birth mother? I collect $1200/mo for my kid in Thailand.

[kynikoi]

1 hour ago, meechai said:

many dont realize most States will give you free Medicaid if you don't have health insurance or are under the income threshold & younger than 65 ...

 

I'm not part of the free shi+ army brigade. Wife couldn't claim it for five years returning on CR1.

 

With SS (Medicare) I'm just trying to recoup the money the government stole from me.

 

The US is a tornado of bad policy decisions and changes. Spending has been out of control since Bush 2. China will eat our lunch while we stand idly by looking like a bunch of Europeans.

[Berkshire]

1 minute ago, EVENKEEL said:

Is she the birth mother? I collect $1200/mo for my kid in Thailand.

Yes, the wife is the birth mother.   The NZAMBOY dude had mentioned 50% of your benefits for each child, but I just wonder how that works in a divorce situation.  The SS statement mentions "Your spouse who is caring for your child" gets additional benefits.  I assume that's in a divorce situation as the wife wouldn't get benefits if one is still married. 

[EVENKEEL]

1 hour ago, Berkshire said:

Yes, the wife is the birth mother.   The NZAMBOY dude had mentioned 50% of your benefits for each child, but I just wonder how that works in a divorce situation.  The SS statement mentions "Your spouse who is caring for your child" gets additional benefits.  I assume that's in a divorce situation as the wife wouldn't get benefits if one is still married. 

I don't know about a divorce situation. I can't see them paying benefits to a non US citizen. 

[meechai]

1 hour ago, kynikoi said:

 

I'm not part of the free shi+ army brigade. Wife couldn't claim it for five years returning on CR1.

 

With SS (Medicare) I'm just trying to recoup the money the government stole from me.

 

Yes the mentioning of Medicaid was just to say.... that at least US citizens can get help if needed regardless of age...if needed

It is nice that is available/safety net

 

 

 

[Jeffr2]

If you are married, on your passing, she'll get 70% or so of your benefits. One reason I'm putting it off.

[EVENKEEL]

54 minutes ago, Jeffr2 said:

If you are married, on your passing, she'll get 70% or so of your benefits. One reason I'm putting it off.

If she's a US citizen.

[ubonjoe]

2 minutes ago, EVENKEEL said:

If she's a US citizen.

Or a permanent resident and has stayed in the US for at least 5 years.

[kynikoi]

1 hour ago, Jeffr2 said:

If you are married, on your passing, she'll get 70% or so of your benefits. One reason I'm putting it off.

Better than a slap across your face with a wet fish but 70% of say 1300 (900 bucks) thirty years from now will buy what in US? I think it can be claimed outside US at least at this moment assuming qualified.

[Jeffr2]

29 minutes ago, kynikoi said:

Better than a slap across your face with a wet fish but 70% of say 1300 (900 bucks) thirty years from now will buy what in US? I think it can be claimed outside US at least at this moment assuming qualified.

I'll get around 3k/month.  Max'ed out SS.  So she'll get around 60k Baht per month.  A nice security net.

[earlinclaifornia]

I have been retired seven years now as my last company was sold. The employment (2014) was awful then at 65.  What saved me was I had always had good paying positions, so I was in the top 92% of SSA award. My brother retired after me but as he had poor earnings having poor paying jobs, he get so little. Living in the Bay Area of SF was so expensive and I was a window, so mostly bored as everyone else were working their butts off. Thailand is a rich lifestyle with a new family of five. 

[cmarshall]

23 hours ago, Kurtf said:

Thanks. That would be five years for me. I'm really expecting inflation to kick in perhaps in two years. I believe it's already running above 4% in usd.

 

I believe you have answered your own question. I agree with you that inflation is going to devalue the dollar significantly in the not too distant future.

 

Ridiculous.  US Bureau of Labor Statistics gives a the 12-month change through Feb. 2021 as 1.7%.  

 

https://www.bls.gov/cpi/

 

But maybe your methodology is superior to that used by the BLS? 

[cmarshall]

4 hours ago, Jeffr2 said:

If you are married, on your passing, she'll get 70% or so of your benefits. One reason I'm putting it off.

 

Not correct.   At her Full Retirement Age the wife gets the larger of her own benefits from her earnings or the spousal benefit of 50% of the husband's benefit.  For a family total of 150%.  Then when he dies, she loses her spousal benefit, but gets 100% of the husband's benefit.

[kynikoi]

23 minutes ago, cmarshall said:

 

Ridiculous.  US Bureau of Labor Statistics gives a the 12-month change through Feb. 2021 as 1.7%.  

 

https://www.bls.gov/cpi/

 

But maybe your methodology is superior to that used by the BLS? 

 

All government statistics invalid. You think Blackrock, Goldman, Berkshire Hathaway trust and rely on government stats? Inflation in US is running well above 5%. You don't have the velocity of money among other anomalies.

[cmarshall]

3 minutes ago, kynikoi said:

 

All government statistics invalid. You think Blackrock, Goldman, Berkshire Hathaway trust and rely on government stats? Inflation in US is running well above 5%. You don't have the velocity of money among other anomalies.

 

And how's the weather up there in Cloud Cuckoo Land?