People who try to say the best outcome is to always claim late are just wrong. It is a lot more nuanced and they must look at the entire picture. Like I said in my earlier post, a bigger check at aged 70 or 75 won't matter one iota to Tamara and I. So.we will claim earlier in between Roth conversions and when we don't have much income. For others, it makes all the sense in the world to claim later to increase the retirement security. It's the same way I feel about an annuity... doesn't fit for us, but for others it makes sense (maybe). Then , there is actual missed dollars for the delayed filers...like how do you reconcile that and say its always wrong to claim early? It's not that straightforward.
It really depends. I'm in the camp that delaying taking social security unless you are either actively working and earning income or you didn't do a great job saving for retirement and need a bigger check to survive on is not for me. The reason; we have more than enough money saved in my retirement accounts to live on till aged 99 and leave some money behind. Eith that particular scenario waiting to collect social security and drawing down my accounts make no sense. Even accounting for the larger checks. Firstly you miss the annual payments year one -seven which in itself is a tidy sum, then I need to drawdown my retirement accounts until then. Finally the social security income in my younger years is worth far more to me than when I'm 70. Assuming my investments grow at the average, my portfolio will be well above a few million dollars, the larger SS check as a proportion of my net worth doesn't mean much. I'll take the funds early, spend it to reduce my portfolio drag in the early years amd call that a day. This doesn't work if your retirement income outlook is poor and you need the money to eat.
Point made and taken. We sometime lose sight of how good we really have it. Let gratitude be the word of the day, not just for the economic wealth we enjoy, but for physical health that many of us still enjoy, even if it may not be 'perfect' health.
It is sad that the saying ' the good die young' applies here. To Jonathan's family my sincere condolences to you. May he soar on the wings of angels. RIP 🙏.
But we must not forget that is why the bucket strategy exists. Having the 3-4 years of expenses set in short term liquidity will be the mouth guard that quiets the teeth gnashing.
Hey, we all have one. Similar boat as you and quite vexing. Trying to not get triggered by their lack purpose and overall drifting isn't easy. Daily prayer and hope that the light bulb will come on one day is where we are currently. It could be worse, I guess.
Bill, you are spot on. We had to work with the plan admin to modify the systems in order to be compliant here at work. The one that gave me the biggest headache was the so called super catch up! when I broke it down it really only allows the participant between age 60-63 to save an additional $11250 over the three years and then back to the regular catch up. I don't get the point of doing this. When I put the $11k in my calculator assuming a rate of return of 8%, it grew to $43k. but at that point I am 83 years old. I just don't see the point of this.
Dick, all the key points are spot on. It really starts with estimating what your retirement spending will be. Once that’s clear, I look at it as “backing into your number” based on the calculations you outlined. In that context, working a bit longer and delaying Social Security can make a lot of sense if savings are on the lower side.
The one area I think is worth highlighting — and you didn’t touch on is part-time work. Even something like 15 hours a week can make a huge difference in stretching retirement dollars.
Oh how much more precious life feels each day upon reading this! You've still got the great sense of humor which i guess nothing will take away. Peace to you and your family. Jonathan. Mike.
Comments
Congratulations. You've done a fine job and love and respect for both the business and the staff.
Post: Selling our Business – The Aftermath
Link to comment from October 10, 2025
People who try to say the best outcome is to always claim late are just wrong. It is a lot more nuanced and they must look at the entire picture. Like I said in my earlier post, a bigger check at aged 70 or 75 won't matter one iota to Tamara and I. So.we will claim earlier in between Roth conversions and when we don't have much income. For others, it makes all the sense in the world to claim later to increase the retirement security. It's the same way I feel about an annuity... doesn't fit for us, but for others it makes sense (maybe). Then , there is actual missed dollars for the delayed filers...like how do you reconcile that and say its always wrong to claim early? It's not that straightforward.
Post: Why Delaying Your Social Security Benefits May Not Make Sense
Link to comment from October 10, 2025
It really depends. I'm in the camp that delaying taking social security unless you are either actively working and earning income or you didn't do a great job saving for retirement and need a bigger check to survive on is not for me. The reason; we have more than enough money saved in my retirement accounts to live on till aged 99 and leave some money behind. Eith that particular scenario waiting to collect social security and drawing down my accounts make no sense. Even accounting for the larger checks. Firstly you miss the annual payments year one -seven which in itself is a tidy sum, then I need to drawdown my retirement accounts until then. Finally the social security income in my younger years is worth far more to me than when I'm 70. Assuming my investments grow at the average, my portfolio will be well above a few million dollars, the larger SS check as a proportion of my net worth doesn't mean much. I'll take the funds early, spend it to reduce my portfolio drag in the early years amd call that a day. This doesn't work if your retirement income outlook is poor and you need the money to eat.
Post: Why Delaying Your Social Security Benefits May Not Make Sense
Link to comment from October 10, 2025
Point made and taken. We sometime lose sight of how good we really have it. Let gratitude be the word of the day, not just for the economic wealth we enjoy, but for physical health that many of us still enjoy, even if it may not be 'perfect' health.
Post: The 1% Club: Our Unnoticed Wealth
Link to comment from September 26, 2025
It is sad that the saying ' the good die young' applies here. To Jonathan's family my sincere condolences to you. May he soar on the wings of angels. RIP 🙏.
Post: Farewell Friends
Link to comment from September 22, 2025
But we must not forget that is why the bucket strategy exists. Having the 3-4 years of expenses set in short term liquidity will be the mouth guard that quiets the teeth gnashing.
Post: The Gnashing of Teeth
Link to comment from September 21, 2025
Hey, we all have one. Similar boat as you and quite vexing. Trying to not get triggered by their lack purpose and overall drifting isn't easy. Daily prayer and hope that the light bulb will come on one day is where we are currently. It could be worse, I guess.
Post: The Catch-22 of Success: How Our Achievements Shape Our Children’s Choices
Link to comment from September 18, 2025
Bill, you are spot on. We had to work with the plan admin to modify the systems in order to be compliant here at work. The one that gave me the biggest headache was the so called super catch up! when I broke it down it really only allows the participant between age 60-63 to save an additional $11250 over the three years and then back to the regular catch up. I don't get the point of doing this. When I put the $11k in my calculator assuming a rate of return of 8%, it grew to $43k. but at that point I am 83 years old. I just don't see the point of this.
Post: Final Secure 2.0 regulations regarding catch up contributions
Link to comment from September 17, 2025
Dick, all the key points are spot on. It really starts with estimating what your retirement spending will be. Once that’s clear, I look at it as “backing into your number” based on the calculations you outlined. In that context, working a bit longer and delaying Social Security can make a lot of sense if savings are on the lower side. The one area I think is worth highlighting — and you didn’t touch on is part-time work. Even something like 15 hours a week can make a huge difference in stretching retirement dollars.
Post: There is no magic number – and it sure isn’t $1 million
Link to comment from September 11, 2025
Oh how much more precious life feels each day upon reading this! You've still got the great sense of humor which i guess nothing will take away. Peace to you and your family. Jonathan. Mike.
Post: Health Update
Link to comment from September 1, 2025