Trailer Trash

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Still raining Mondaily (Read 18 times)

mtwarden


running under the BigSky

    it's roughly 30% less if you retire at 62 vs 66, that sounds like a lot, but if you figure a full 4 year head start and interest, it becomes a little closer imo

     

    for simplicity sake say $1000 a month at 62 and $1300 for 66- so $12,000 x4 $48,000  I won't include interest as it gets complicated compounding it and then comparing

     

    with $300 of additional income/ month it would take ~ 160 months to catch up and overtake the early withdraw - 13.5 years, at age 79- now you'll start seeing a benefit from that point forward

     

    working another 4 years to see an advantage at age 79 and beyond-personally I think I'll skip that four years of additional work 

     

     

    2023 goal 2023 miles  √

    2022 goal- 2022 miles √

    2021 goal- 2021 miles √

     

    Sandy-2


      mt, thanks for the example, it’s really helpful.  Something to consider.  Just a note though, I would still retire and start collecting my company pension, just not start thw SS part until later. But again we’ll run the numbers and see.

       

      By the way I think I’m going to take the lump sum from the company pension and not the monthly checks. Most recent retirees at my company are going with the lump sum.

      2/17/24 - Forgotten Florida 100 Mile, Christmas, FL

      wcrunner2


      Are we there, yet?

        Rest day, sore heel.

         

        Re SS: I did a lot of number crunching when I had to decide. The break even point seemed to be early '80s. For every year you lived after that it would be better to postpone taking it. The deciding point for me was my work and financial situation at the time. I wanted to avoid dipping into investment savings or retirement accounts, and if possible keep adding money to my 401(k) and Roth IRA. Taking SS early allowed me to do that and still meet living expenses. That also offset to a large degree the reduced SS payment and pushed the break even point out a few more years. At this point with having to take the RMD, 85% of my SS is taxable and a higher SS payment would push up my tax bracket as well.

         2024 Races:

              03/09 - Livingston Oval Ultra 6-Hour, 22.88 miles

              05/11 - D3 50K
              05/25 - What the Duck 12-Hour

              06/17 - 6 Days in the Dome 12-Hour.

         

         

             

        mtwarden


        running under the BigSky

          Sandy- if you retire and are able to wait, then that makes sense

           

          definitely have a retirement specialist run the numbers on your pension; ours (State of Montana) is paid monthly, BUT ours includes a guarantee annual benefit adjustment (GABA) of 3% per year, regardless of inflation- pretty big perk

           

          George- I'm looking at doing something similar, I have a 457 from my state job and a 401 from my current job, letting them sit a couple of years certainly wouldn't hurt

           

           

          2023 goal 2023 miles  √

          2022 goal- 2022 miles √

          2021 goal- 2021 miles √

           

          Daydreamer1


            http://danielamerman.com/

             

            This guy has a different way of putting things into perspective on whether or not you should take early.

             

            http://danielamerman.com/va/rfe/PerMath.html

             

            I found the second one the most interesting. He had a whole series that can be found on his main web site.

             

            I'd like to have DW take it early but it's going to require some financial engineering for her to do so and still keep our income where we need it to be.  Such is the reality of a marriage where there is a 8 year age difference.

             

            But then why should I worry.  Have her work until late 60s so I can retire early .

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