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Yes, I remember that but didn’t remember the amounts. It is hard delaying even with the math staring you in the face and plenty of reasons to delay. Re-financing right now to 2.75% from 3.875 and the facilitator actually said to me “You know you get your SS now. That would boost you income more than enough for the refinance.” I can set my income to whatever I want with regularly scheduled withdrawals from any of 5 retirement accounts, but somehow that & being able to pay off the house 3 times with existing funds and both our credit scores over 800 isn’t enough to show we know what the f&%# we are doing!
Honesty, if I could file now and then cancel after the refi is done, I would. I really don’t understand why SS makes you wait until FRA to stop and allow restart later.
You can file and do what is called a withdrawal after refi is done - but has to be less than a year, have to pay everything received back and can only do once.
Good idea, but I was saving that for later. The plan is to file at 68, then decide if I want to refile at 69. It’s more an inconvenience than anything right now. I actually WANT to use up some of my tIRA in order to delay filing SS to reduce RMDs and taxes down the road.
My view is a bit different than most others in that I considered SS a longevity annuity with some COLA components, and it HAD to be paid anyway. It’s not like I had to put in any special effort for it. All the real effort went to LBYM, saving the maximum and learning to invest. Now that I have a sizable nest egg, it wasn’t until it was too late that I realized I had underestimated HOW MUCH the tIRA would grow and I should have been in Roth far sooner. It’s not a bad problem to have, but it is ironic that I may have taken what I thought were healthy tax savings by delaying the taxes, based on that common advice that you will be in a lower tax bracket when retired, when it is not true for me at all.
We find ourselves in the exact same bracket, thanks to fixed income from pensions, with no way to lower it, and when one of us passes first, the survivor will most certainly be in a higher tax bracket on any tIRA withdrawals. So ROTH conversions are planned while the tax rates are temporarily reduced.
So my mindset is to spend what I worked for the hardest to accumulate, first. Unlike many others, I have no problems spending down and watching the bottom line drop. But the last few years have shown that if I spend as I normally would, the earnings more than cover it, and my egg still continues to grow. It just grinds me that I could set my tIRA automatic withdrawals to double my SS projection and the loan underwriters don’t consider it valid income until I have 3 months of withdrawals at that level, when any idiot knows that I can increase or decrease it at will as necessary. If the funds are THERE for retirement and I am using them for retirement, and there are obviously many years worth of withdrawals available to beyond age 70 when SS is mandatory, then why the hassle?
You can file and do what is called a withdrawal after refi is done - but has to be less than a year, have to pay everything received back and can only do once.
Start stops are still allowed whenever you want over fra ....you pay pay back nothing and stop the clock ...ss is suspended from that point and starts growing from that point again and you refile down the road...
That is not the same thing as paying back the first year and starting over
In NJ the average pension for a teacher and cop is about $25,000 different
Such averages are intentionally misleading as they include large numbers of people who worked in the job only a short time and hence receive a tiny pension.
If you look the mean pension of people who spent their entire careers as teachers and cops, the pension is gold-plated.
If you look at the median pension of people who spent their entire careers as teachers and cops, the pension is gold-plated.
Last edited by RationalExpectations; 01-20-2021 at 09:25 AM..
“For example, if you retire after 30 years of service with a final average salary of $62,000, you will receive $2,818 per month. To learn more about retirement benefit options available to New Jersey teachers, contact the Teachers' Pension and Annuity Fund.”
A nice pension for sure, but not what I would call gold plated.
They are required to contribute 9% of their pay in order to qualify for a pension. Contributions are mandatory. Current maximum salary is $111,000.
“Service Retirement: After 20 years of service as a New Jersey State Trooper, you are eligible to receive a pension, regardless of age, consisting of 50% of your final compensation.
Special Retirement: After 25 years of service as a New Jersey State Trooper, you are eligible to receive a pension, regardless of age, consisting of 65% of your final compensation plus 1% for each year above 25 years. The maximum benefit that you can receive under a special retirement is 70% of your final compensation”
Again, considering 9% contributions are mandatory, not what I would call gold plated at all.
Start stops are still allowed whenever you want over fra ....you pay pay back nothing and stop the clock ...ss is suspended from that point and starts growing from that point again and you refile down the road...
That is not the same thing as paying back the first year and starting over
Of course you can do after FRA but that has nothing to do with the issue and was already stated that it was allowed after FRA in the post I was responding to. Go back and look - I was responding to
Quote:
Honesty, if I could file now and then cancel after the refi is done, I would. I really don’t understand why SS makes you wait until FRA to stop and allow restart later.
This was about starts and stops Before FRA - withdrawals of SS which was also in the link I posted.
I think learning really early - that my financial success was all up to me - was key.
My parents couldn’t bail me out - there were 6 other siblings. With that I struck out on my own at 17. I got into huge debt at age 27 and that scared me - tremendously. It was all on me.
Living frugally and meeting my spouse who felt and lived the same helped. Not being able to have children actually helped. We re-directed our attention and our money - at age 40 to US. It was all on us.
We live in my spouses home state - California - and still live frugally on my Utah pension and Social Security. No mortgage - not expecting spouses Social Security to kick in until about 19 months.
Everything else - is gravy - or our long term care plan.
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