Getting Social Security and working

[Tom D]

I believe your full retirement date for SS benefits should be 67 years of age. If you wait to retire until then, you will get your full benefits from SS and you can make money on your own. You can even wait until you are 70 and get a higher SS check. They have probably been sending you bulletins about this every April. I get one every April. If I wait until my retirement age (66 and ten months) I will get $3614 a month. If I wait until 70, I will get $4537 per month.

The longer you wait, you will get more, 70 being the latest to take it. You gamble in that if you live past 75 then you will be making a profit for waiting. If you die before 70 you have lost by waiting.
Most of yous should decide on your old age belief. However, most appraisers i knew or hired, worked into their 80's. It's not a physical job, and good part time money, plus busy time when retired.
Working for me.

 

[KHS445]

The longer you wait, you will get more, 70 being the latest to take it. You gamble in that if you live past 75 then you will be making a profit for waiting. If you die before 70 you have lost by waiting.
Most of yous should decide on your old age belief. However, most appraisers i knew or hired, worked into their 80's. It's not a physical job, and good part time money, plus busy time when retired.
Working for me.

I started drawing four months ago when I turned 70. My decision was three fold; I was making enough money to live comfortably prior to collecting, I couldn’t see why I should accept a reduction in my SS benefit while it might put me in a higher tax bracket and finally my wife is just over four years younger than me and should I die before she does she will be eligible to collect my higher benefit. Additionally as she has owned a retail store for the last 30+ years and has earned a minimal amount of income. At her full retirement age she has the option of drawing on her earnings or drawing 50% of mine. Because I waited, she will draw off my benefit and will receive about $600 more per month than if she drew based on her benefit.

My other consideration is with the exception of my mother who had lung issues due to polio and my paternal grandfather who passed nearly 60 years ago during non-emergency surgery, all my direct bloodline relatives aunts, uncles, grandparents and great grandparents have lived into their late 80’s and most have made it to 90+.

 

[Fernando]

So I got into my SS site and I saw what I would get at age 62, 65, and 70.
The amount did increase significant at different age point but I couldn't believe how low.
I was expecting much higher.
If old folks are only dependent on SS, I can see how hard it is to live in current economic environment.

 

[KHS445]

So I got into my SS site and I saw what I would get at age 62, 65, and 70.
The amount did increase significant at different age point but I couldn't believe how low.
I was expecting much higher.
If old folks are only dependent on SS, I can see how hard it is to live in current economic environment.

SS is based on your reported earned income. A real estate mogul like yourself generally does everything they can to reduce their earned taxable income. Thus you paid less income tax on your earnings, but you also paid less into the system. You pay less in, you get less out. Now that said, your real estate assets should have significantly increased in value and those can be used to fund your retirement.

Granted you will have to pay the capitalization tax on the difference between the sale price of the property and your depreciated holding value, however since this is not considered earned income you do not have to pay both sides of SSI and Medicare that you would have to pay on earned income.

I thought I read somewhere the other day that the maximum SS payment for someone at their full retirement was just short of $5,000 per month.

For years I have maintained that all earned income should be subject to the SSI and Medicare taxes, but limit the maximum annual payout at retirement to something like 150% of the poverty level. Let all the entertainers, athletes and other high income folks contribute at the same level as us common folk. SSI and Medicare are the most regressive tax out there when you look at the percentage of income paid in by most hourly workers vs. that paid by the high income individuals. This change would also help stabilize the system.

 

[Tim Hicks (Texas)]

So I got into my SS site and I saw what I would get at age 62, 65, and 70.
The amount did increase significant at different age point but I couldn't believe how low.
I was expecting much higher.
If old folks are only dependent on SS, I can see how hard it is to live in current economic environment.

Did it tell you your official retirement age is 67 for full benefits?

 

[Fernando]

Did it tell you your official retirement age is 67 for full benefits?

I don't remember seeing that. I was also looking for Medicare benefits. That is bigger savings. Must be different website.

 

[Mark K]

You pay less in, you get less out. Now that said, your real estate assets should have significantly increased in value and those can be used to fund your retirement.

Granted you will have to pay the capitalization tax on the difference between the sale price of the property and your depreciated holding value, however since this is not considered earned income you do not have to pay both sides of SSI and Medicare that you would have to pay on earned income.

You invest in real estate, write off depreciation/expenses, etc and lower your taxable income. But, as you say, you also pay less in SS taxes and therefore, your payout is reduced. I had 20 rental properties and my tax bill was very low for a few years, even show a loss on occasion. Paid almost nothing in those years into SS.

And also, at sale, you pay cap gains taxes on the profit and you recapture the depreciation you wrote off at your current income tax rate, not a cap gains rate which is typically lower. If your income/tax rate at the time of sale is low, that's a good thing, If you're still making good money and in a higher bracket, you can end up with a significant tax bill. Trust me; been there, done that.

 

[Tim Hicks (Texas)]

I don't remember seeing that. I was also looking for Medicare benefits. That is bigger savings. Must be different website.

You will find your Medicare information (starts at 65) on the same site. You need to register 3 months before your 65th birthday.

 

[Fernando]

You will find your Medicare information (starts at 65) on the same site. You need to register 3 months before your 65th birthday.

That's good to know. No need to decide whether 62, 65, 67, 70 age to take it.
I heard Medicare recently allow acupuncture as a benefit. Never tried it.

 

[KHS445]

Did it tell you your official retirement age is 67 for full benefits?

He probably didn't notice that, but then again reading is fundamental.