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Dan’s recent post about the risk of cuts in Social Security benefits only seven or so years away got me thinking.
This title isn’t serious, but I wonder if my unconventional SS strategy has once again helped me fall on greener grass? Actually I hope not because 60 million people would be harmed.
I took and saved SS at FRA while still working, my benefit wasn’t reduced and our combined benefits were invested in tax free bond funds for several years.
Now if SS is cut, our reduction will be less then had I delayed, we are not dependent on the higher delayed SS benefit and the monthly interest we earn on the invested funds will easily offset the estimated SS cut.
No, this was not a grand plan, and no, I claim no superior knowledge of SS or investing, it’s a bit of convoluted thinking but perhaps an interesting outcome.
Have no fear, personally I still don’t see any cuts actually being implemented.
Those on SS want their COLAs and benefits to continue unchanged. The young are inclined to view it as an unfair tax, and a wealth transfer scheme. The young are correct.
I took SS at FRA and invested the benefit. There were sacrifices made. The investments did very well.
I don’t see it as unfair or a scheme. Where would seniors or our economy be without it? Where were they before SS even when lifespans were much shorter?
It’s hard to appreciate at 18, but quite welcome at 80.
It seems many people see anything that requires taxes or payment but does not provide immediate value for the them as unfair or a scheme.
I wonder how Americans would react to the Australian program😱
I tell people on my blog that if they don’t want to be part of society, they need to find a cave and live totally on their own, not accepting nor contributing.
Like everyone else, my financial planning has been influenced by whatever the rules and laws were at the time, knowing they may change in the future. To prepare for this, along with other unknowns, I have a built-in margin of safety to hopefully enable me to cope.
That’s a very reasonable approach, Jack.
All true, but at least for me, I view Social Security as a form of longevi