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A search for retirement and Social Security Info
Posted by: Randalls
Date: May 17, 2019 02:48PM
I reach my prime retirement date in June. I read the forum concerning investments (forum seems to recommend vanguard index funds and bogleheads.org). However some info about actually signing up for Social Security has been a bit contradictory.

For example I was told that once I reach my retirement year I can work as much as I like with no cap on earnings.

Also, can I continue to work AFTER the retirement date kicks in and social security is being used? If I work any after claiming how much penalty will there be?

Is there a good book or source of info someone on the forum knows of?
Thanks
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Re: A search for retirement and Social Security Info
Posted by: rz
Date: May 17, 2019 03:27PM
Once you reach Full Retirememt Age (FRA), you can earn as much as you want with no deduction in your SS. If you start taking benefits before FRA (age 62 thru 66 or 67), then you can earn up to a certain amount (currently around $17k) before you start having money deducted from SS. Above that amount, you lose $1 in benefits for every $2 you earn.

Check out [www.ssa.gov] for all the info you could possibly want.
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Re: A search for retirement and Social Security Info
Posted by: MrNoBody
Date: May 17, 2019 04:01PM
Second rz's recommendation, use ssa.gov
I found that most folks I talked to about retirement benefits were just
parroting bad info they had 'heard' and couldn't distinguish
their arse from their nose.



N39° 39.7234', W075° 33.9788'
...word salad is not a disorder, it is a symptom...

“If you can't explain it to a six year old, you don't understand it yourself.”
-Albert Einstein

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Re: A search for retirement and Social Security Info
Posted by: Filliam H. Muffman
Date: May 17, 2019 04:16PM
Did you file for Medicare three months before you hit 65?



In tha 360. [url=Zee Maps Now requires a subscription/payment to work]MRF User Map[/url]
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Re: A search for retirement and Social Security Info
Posted by: Michael
Date: May 17, 2019 05:28PM
If you're talking about the process of signing up for Social Security, I just did it and found it very easy. Actually, the more difficult thing was to sign up for Medicare that I did several months ago. You have to start by signing up for an account at My Social Security. That was the biggest pain of all. I tried to sign up and it said I couldn't do it online and to call M-F. I considered that for a day and then wondered whether having my credit frozen was making a difference. I unfroze it and was able to sign up. It also took me several tries to figure out that the government won't accept the period in St. Louis for my birthplace. Once those things were out of the way it was easy-peasy to get the account. From there I signed up for Medicare in a few minutes. Last week I signed for Social Security in a few minutes, as well. You can avoid the whole online thing and make an appointment and sign up in person at a Social Security office. I decided that they were more likely to make an error than was I so I did it online.

As a PSA for people my-age ish (65). If you have IRA's or 401k's, you'll have RMD's in about 6 years. You might look at an RMD calculator to consider what you'll have to take out in those years and following (here's one: [www.schwab.com]). Also, my tax-lawyer daughter, who's firm is deeply connected to Washington, tells me that it's VERY unlikely that the current tax rates are going to be continued past the expiration date of the end of 2025. Unless, of course, Trump wins and the Repubs take the House and expand in the Senate to become filibuster-proof (I'll leave the discussion of the possibilities of this to the other side!). She suggested that I use an online tax calculator for 2019 to project our taxes at current tax rates through 2025 and one for 2017 to see the likely taxes starting in 2026. So, I took the Social Security that I was to get at 70 years of age and my wife was to get at 66 years old, our pensions (increasing at 3% as the current law guarantees) and the RMD's of our IRA's (assuming a 4% return on them). I put all of that in a spreadsheet and projected income down to ages 100 and 98 (I'm very optimistic!) and then looked at our anticipated taxes through 2025 with the current tax rates and then beyond with the likely 2026 tax rates. It was remarkable how much a jump in taxes that it showed between 2025 and 2026 and going forward from then. I then looked at the impact of converting our IRA's to Roth IRA's between now and 2025 and paying the tax at current rates to take the RMD's out of the picture. It turns out that converting before the tax rates go up will pay off. But, how to get the money to pay the conversion taxes without taking it from the IRA's, themselves? We decided to go ahead and file for Social Security now (I'm 2 months before full retirement age and my wife is 26 months before) and use the net proceeds of that to pay the tax on the IRA conversions. Doing that will allow us to convert everything before tax rates likely go up in 2026. Putting that into my spreadsheet shows that we're still coming out ahead vs. waiting to file for Social Security.

Of course, if any of my assumptions are wrong, this whole plan can go south!

Here's a tax calculator for the current tax rates: [www.ameriprise.com]

Here's a tax calculator for the 2017 rates, that are scheduled to come back in 2026: [www.mortgagecalculator.org]
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Re: A search for retirement and Social Security Info
Posted by: Randalls
Date: May 17, 2019 05:39PM
Thanks everyone. I did set up an appointment for a meeting. And yes, I did apply for and am now a Part A Medicare card carrier. Still have to make the call on the other parts and supplements. I read on this forum Plan F is popular if memory serves. May keep my current employee insurance until I need to switch. My phone conversation confirms I can continue to work AND receive Social Security not only this year but future years. Although I think I would def pull the plug the first of next year.
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Re: A search for retirement and Social Security Info
Posted by: Michael
Date: May 17, 2019 06:56PM
You might also look at a Medicare Advantage program. Mine costs $34 a month; that's on top of Part B that we all have to pay. It has modest dental and vision coverage and really good hearing coverage. The out of network physician cost is pretty minimal--$20 copay rather than $10 copay is typical. It's ultimately a high deductible plan that can get $6000 ugly if I get very sick. But, we've had a high deductible policy for years and have only had 2 times we've had to pay for health issues in those years so it's worked well for us. I'm going to keep my fingers crossed that the Medicare Advantage program will also work well. I presume that as I get older and sicker I'll shift to some other Medicare supplement.
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Re: A search for retirement and Social Security Info
Posted by: DeusxMac
Date: May 17, 2019 06:58PM
Nota bene: for every year you can hold off receiving your SSA benefits, they increase 8%.

Example: If your full monthly payment at 66 would be $2,000, if you delay benefits until you’re 67 it goes up to $2,160 a month; $2,332.80 at 68 etc.
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Re: A search for retirement and Social Security Info
Posted by: Randalls
Date: May 17, 2019 09:22PM
Apppreciate that info Michael. My brother has that but I am not a gambler so may hedge on the Advantage programs. Don’t they also require physicals and possible pre-existing issues if luck turns and you try to change it?

Also DeusxMac I am not a gambler, I am a pessimist so if nothing goes wrong I can only be pleasantly surprised.
I have been collecting too many items that I want to read, play, record and paint to be stuck working for the office any longer than I should. I was pushing it to get full retirement if I wasn’t so frugal (cheap).
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Re: A search for retirement and Social Security Info
Posted by: Michael
Date: May 18, 2019 05:09AM
Quote
Randalls
Apppreciate that info Michael. My brother has that but I am not a gambler so may hedge on the Advantage programs. Don’t they also require physicals and possible pre-existing issues if luck turns and you try to change it?

Also DeusxMac I am not a gambler, I am a pessimist so if nothing goes wrong I can only be pleasantly surprised.
I have been collecting too many items that I want to read, play, record and paint to be stuck working for the office any longer than I should. I was pushing it to get full retirement if I wasn’t so frugal (cheap).

They don't require physicals nor are pre-existing illnesses a problem (except for end stage renal disease--there's a separate program for that). You can change the program every year at the end of the year and you can change in any way you want--Advantage to Original Medicare, change Advantage from one to a different one, change from Original to Advantage, change from one Medicare drug program to another--whatever--from Oct. 15-Dec. 7 every year. Additionally, if you're in a Medicare Advantage program you can shift to a different one OR shift from Medicare Advantage to original Medicare every year from Jan 1-Mar 31.

Having said this, my Advantage program is a bit of a gamble--I'm gambling that I'm not going to get very sick this year. If I do, my maximum out of pocket will be $6000. But, that would take a very serious illness since there is very good coverage for medical problems. So, if you're not a gambler it might be better to get a supplement policy that costs substantially more but covers much more. By the way, in your comment you mentioned plan F. That's a high deductible supplement plan that won't be available after this coming Jan. So, you could sign up for it for the rest of this year and you could sign up for it for 2020 if you do it in the fall but apparently not for any other years following. I don't know if there's something that will replace it.
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Re: A search for retirement and Social Security Info
Posted by: DeusxMac
Date: May 18, 2019 08:11AM
Quote
Michael
...my Advantage program is a bit of a gamble--I'm gambling that I'm not going to get very sick this year. If I do, my maximum out of pocket will be $6000. But, that would take a very serious illness since there is very good coverage for medical problems. So, if you're not a gambler it might be better to get a supplement policy that costs substantially more but covers much more.

See [forums.macresource.com]
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Re: A search for retirement and Social Security Info
Posted by: Michael
Date: May 18, 2019 10:14AM
Quote
DeusxMac
Quote
Michael
...my Advantage program is a bit of a gamble--I'm gambling that I'm not going to get very sick this year. If I do, my maximum out of pocket will be $6000. But, that would take a very serious illness since there is very good coverage for medical problems. So, if you're not a gambler it might be better to get a supplement policy that costs substantially more but covers much more.

See [forums.macresource.com]

Thanks. I checked with my local docs and none of them are in network but all of them take it. So medical visits would be $20 rather than $10. The hospitalization is the same in or out of network so that's not a problem. But, I didn't look at rehab facilities. I'm set for June 1 through the rest of this year but I'll look at it more deeply before renewing in the fall.

I had a strange situation in which the university system that I'm employed with will put a couple hundred $ per month into an HRA through our retirement but only if we use a referral company that they contract with. That company takes your medical information and then lists all of the various Medicare options available in the area and you sign up with the specific Medicare company through the referral company. I had to choose a plan by looking at overview information but without actually seeing the contract. That was a bit irritating and the referral company acted like it was no big deal. But, to get the HRA money I had to go through the company. So I did. I'll not see the actual contract until after the policy starts. I figure I'm probably ok from June 1 through the year but I'll take a close look at the renewal time in the fall.
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Re: A search for retirement and Social Security Info
Posted by: lost in space
Date: May 18, 2019 12:29PM
I can add only one thing that hasn’t been mentioned: if you’re an older parent like I am, and have a dependent child younger than 18, that child can get about 80% of your Ss benefits, in addition to your benefits. Info on this is buried in the SS web site, and not very well publicised. My son now has about $35k more in his college fund that we weren’t expecting.



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Re: A search for retirement and Social Security Info
Posted by: Randalls
Date: May 18, 2019 05:45PM
Thanks for that additional info. Appreciate it.
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