While I agree that many billionaires have helped advance our standard of living, it is clear that technological advances have almost always been the primary reason for the enormous economic development over the past 200 years. For example, does anyone doubt that an app comparable to Facebook would have been developed if Zuckerberg hadn't been born?
You did a good job of stating the case for claiming early. However, I can't help but think of a relative who claimed at 62 because she "needed" the money because she had been living on maxed out credit cards for years. It would have been great if she had used her SS income to help her get out of debt but instead she used it to add to her collection of Coach purses and for other discretionary spending while continuing to make minimum payments on her credit cards.
I agree with your argument that personal need trumps mathematical models that maximize the dollar amount. However, your critique of optimizing the financial return from SS is strongly slanted towards claiming early. I decided long ago without the help of any spreadsheet or break-even analysis that my strongest personl need from SS is to help ensure that I don't run out of money regardless of how long I live. I'm sure I was influenced by my mother whose biggest fear in old age was that she would need to rely on her children for financial support. Even though she lived to 99 she was able to remain financially independent due to a combination of SS income and living in a Type A CCRC.
Our Humble Opinion: Social Security is such a wonderful source of retirement income that most folks should delay benefits, so they get a larger monthly check. Retirement’s big financial risk isn’t dying young, with scant money collected from Social Security. Rather, the big risk is living so long that you deplete your savings—at which point a fat Social Security check could be your financial salvation.Jonathan Clements https://humbledollar.com/money-guide/introduction-to-social-security/
Certainty bias sounds very similar to overconfidence bias that was identified by Kahneman and Tversky many years ago. Overconfidence bias is a cognitive bias where an individual's subjective confidence in their own judgment, ability, or future success is reliably greater than their objective (actual) performance or the facts would justify. It is one of the most significant and widespread cognitive biases.
While SS isn't inheritable, if you waited until 70 instead of 67 you could invest the 24% benefit increase in equities each year. Whether that would result your ending up with a larger equity portfolio than you would have if you claimed at 67 which allowed you to not draw down some of your equities between 67 and 70 would depend on how long you lived.
While non-profits are exempt from income taxes they may be subject to property taxes. My mother was in a Type A facility in Iowa that had tp pay property taxes.
As I noted below, if you claim at an older age you will earn increasingly more in $ benefits each time there is a COLA adjustment even though you will continue to earn 24% more for the rest of your life (32% more for us old folks with an FRA of 66).
What he completely missed is the fact that each time there is a COLA the $ difference in benefits increases even though the percent difference remains the same. There is simply no way that the % difference can remain constant each time there is an adjustment without the $ amount changing. As an extreme example consider the impact of a 5% COLA for A who is receiving $1,000/month and B who is receiving $10,000/month. A's benefit will increase to $1,050 and B's benefit will increase to $10,500 and the difference between their monthly benefits will increase from $9,000 to $9,450. If there is another 5% COLA the following year, A's benefit will increase by $52.50 to $1,102.50 and B's benefit will increase by $525 to $11,025 and the difference between their benefits will increase to $9,922.50. Thus, even though A and B received the same COLA % increases, compounding on the different amounts increased the difference in their benefits by $922.50 (i.e., from $10,000-$1,000= $9,000 to $11,025-$1,102.50=$9,922.50). Note also that compounding results in the difference in benefits increasing from $450 in the first year to $525 in the second year and that the difference in benefits with continue to grow every year there is a COLA.
I'm sorry but all % increases in SS do compound. Because the person who delays starts with a higher amount each percent increase will increase the $ difference between what he or she would have received by claiming at 67 versus what he or she receives by waiting to claim until 70 even though everyone gets the same % increase.
Comments
While I agree that many billionaires have helped advance our standard of living, it is clear that technological advances have almost always been the primary reason for the enormous economic development over the past 200 years. For example, does anyone doubt that an app comparable to Facebook would have been developed if Zuckerberg hadn't been born?
Post: I think billionaires are under appreciated
Link to comment from November 17, 2025
You did a good job of stating the case for claiming early. However, I can't help but think of a relative who claimed at 62 because she "needed" the money because she had been living on maxed out credit cards for years. It would have been great if she had used her SS income to help her get out of debt but instead she used it to add to her collection of Coach purses and for other discretionary spending while continuing to make minimum payments on her credit cards.
Post: The Messy Human side of Social Security Claiming
Link to comment from November 16, 2025
I agree with your argument that personal need trumps mathematical models that maximize the dollar amount. However, your critique of optimizing the financial return from SS is strongly slanted towards claiming early. I decided long ago without the help of any spreadsheet or break-even analysis that my strongest personl need from SS is to help ensure that I don't run out of money regardless of how long I live. I'm sure I was influenced by my mother whose biggest fear in old age was that she would need to rely on her children for financial support. Even though she lived to 99 she was able to remain financially independent due to a combination of SS income and living in a Type A CCRC.
Post: The Messy Human side of Social Security Claiming
Link to comment from November 16, 2025
Our Humble Opinion: Social Security is such a wonderful source of retirement income that most folks should delay benefits, so they get a larger monthly check. Retirement’s big financial risk isn’t dying young, with scant money collected from Social Security. Rather, the big risk is living so long that you deplete your savings—at which point a fat Social Security check could be your financial salvation. Jonathan Clements https://humbledollar.com/money-guide/introduction-to-social-security/
Post: The Messy Human side of Social Security Claiming
Link to comment from November 16, 2025
Certainty bias sounds very similar to overconfidence bias that was identified by Kahneman and Tversky many years ago. Overconfidence bias is a cognitive bias where an individual's subjective confidence in their own judgment, ability, or future success is reliably greater than their objective (actual) performance or the facts would justify. It is one of the most significant and widespread cognitive biases.
Post: Certainty addiction in financial decision-making
Link to comment from November 14, 2025
While SS isn't inheritable, if you waited until 70 instead of 67 you could invest the 24% benefit increase in equities each year. Whether that would result your ending up with a larger equity portfolio than you would have if you claimed at 67 which allowed you to not draw down some of your equities between 67 and 70 would depend on how long you lived.
Post: THE REAL RETURN ON DELAYING SOCIAL SECURITY
Link to comment from November 13, 2025
While non-profits are exempt from income taxes they may be subject to property taxes. My mother was in a Type A facility in Iowa that had tp pay property taxes.
Post: How Has Living in a CCRC Affected Your Monthly Bills?
Link to comment from November 13, 2025
As I noted below, if you claim at an older age you will earn increasingly more in $ benefits each time there is a COLA adjustment even though you will continue to earn 24% more for the rest of your life (32% more for us old folks with an FRA of 66).
Post: THE REAL RETURN ON DELAYING SOCIAL SECURITY
Link to comment from November 13, 2025
What he completely missed is the fact that each time there is a COLA the $ difference in benefits increases even though the percent difference remains the same. There is simply no way that the % difference can remain constant each time there is an adjustment without the $ amount changing. As an extreme example consider the impact of a 5% COLA for A who is receiving $1,000/month and B who is receiving $10,000/month. A's benefit will increase to $1,050 and B's benefit will increase to $10,500 and the difference between their monthly benefits will increase from $9,000 to $9,450. If there is another 5% COLA the following year, A's benefit will increase by $52.50 to $1,102.50 and B's benefit will increase by $525 to $11,025 and the difference between their benefits will increase to $9,922.50. Thus, even though A and B received the same COLA % increases, compounding on the different amounts increased the difference in their benefits by $922.50 (i.e., from $10,000-$1,000= $9,000 to $11,025-$1,102.50=$9,922.50). Note also that compounding results in the difference in benefits increasing from $450 in the first year to $525 in the second year and that the difference in benefits with continue to grow every year there is a COLA.
Post: THE REAL RETURN ON DELAYING SOCIAL SECURITY
Link to comment from November 13, 2025
I'm sorry but all % increases in SS do compound. Because the person who delays starts with a higher amount each percent increase will increase the $ difference between what he or she would have received by claiming at 67 versus what he or she receives by waiting to claim until 70 even though everyone gets the same % increase.
Post: THE REAL RETURN ON DELAYING SOCIAL SECURITY
Link to comment from November 13, 2025