Social Security Pros & Cons

[Tim The Enchanter]

Lynne, when are you going to die? Its easy to calculate then.

It's not like you have a date to meet the reaper set.
When you get there, you get there. Maybe tonight.

Of course you can look at your health, family history.
Dad is 80. Maybe I should wait until my full retirement age.

 

[Lynne]

Thanks, Lee I celebrated my "10" year mark for survivorship of breast cancer a few months ago. Not planning on going anywhere even tonight...

Just the thought of less work brings my blood pressure down. This is the second year in a row that last quarter of the year has me running due to lender CDAIR inspections.

I'm taking the advice of those that have taken early benefits and doubt I'll ever regret it.

 

[Terrel L. Shields]

An S Corp can shield some income.

 

[Tim The Enchanter]

Thanks, Lee I celebrated my "10" year mark for survivorship of breast cancer a few months ago. Not planning on going anywhere even tonight...

Good for you on beating that. Hmm, how many years for my sister? I think in the same ballpark.
Anything that lowers blood pressure is probably good.

 

[Tim The Enchanter]

I remember visiting her at Holy Cross hospital in Mission Hills.
Was on a high enough floor for a view, I said nice view.
She said, it's all cemeteries. Which it is.

They did not remove her sense of humor.

 

[Mark K]

"For the year 2017, this limit on earned income is $16,920 ($1,410 per month). The amount goes up each year. If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit."

If you're a sole proprietor the $16,920 threshold is the bottom line of the IRS Schedule C. If you make $40K in appraisal income and can find about $23K in expenses, you're not affected.

If you're incorporated, there's probably a few good ways to shield the income. Talk to your accountant.

I'm in the same boat but probably won't draw for at least another year. If you do the math, taking early or waiting results in about the same total income until you reach about 80 and then you'll start coming out ahead (the lines on the graph cross). If you don't need the cash from the SS and can invest it at 5-6%, it takes several years past 80 to come out ahead by waiting.

 

[Tom D]

i used to do a lot of reverse mort appraisals. i ran into a lot of widowed woman, many who were in their 80's. you need to consider whether you have enough money to live off of if you're in your late 80's. i personally think it's not a wise decision to retire early. you can work a couple days a week and still make more than your way. i am waiting till 70 to collect, in which case my monthly check would be almost double. but probable keep working till 75 the best part was getting medicare which put my insurance yearly bill of $30,000 back into my pocket. for some reason since i've done that i'm working 8 days a weeks. that will increase my monthly benefits. i don't see the reason to go early if you can make $40,000 a year working just part time. this is the easiest job if you've picked your clients properly.

long, long ago, when i wanted to become an appraiser you had to literally wait for one to die to get a training position.

 

[DTB]

i used to do a lot of reverse mort appraisals. i ran into a lot of widowed woman, many who were in their 80's. you need to consider whether you have enough money to live off of if you're in your late 80's. i personally think it's not a wise decision to retire early. .

That is great argument for not being house poor.

Most people in their 80s are much better off selling their house and renting a nice apartment. If they can get over the psychological aspect of it.

I will be collecting at 62.

Monthly Social Security benefits Retirement age Break-even age
$2,102 62 vs. 66 Between 77 and 78
$2,806 62 vs. 70 Between 80 and 81
$3,721 66 vs. 70 Between 82 and 83

 

[CCAAMO]

If you receive SS before full retirement age, and you earn over the limit in some or all of the years prior to full retirement, I believe they do credit the penalty back in the form of higher monthly payments when you do reach full retirement age.

 

[Lynne]

Thanks to all who responded! This discussion was very informative and definitely helpful.

The tax accountant I've used for the last 15 years says he does not have experience or knowledge to advise. My thoughts are I need to find a tax attorney to file 2017 taxes and give retirement advice. Do not need a financial advisor...not enough pennies to worry about