Fender's final approach to retirement.

[cemanuel]

(12-07-2021, 08:39 PM)fenders53 Wrote: The "when to draw SSA" is a very personal issue I have given much thought to.  I am sure an accountant can run the math and tell me to delay my SSA.  You what he can't tell me?

-How long will I live?  Knowing my family history the answer is probably about 80 at best before I belong in a nursing home. 

-How long do I have to enjoy my life passions without much assistance?  The answer is probably 10 years, maybe 15 years at best.

-SSA mostly dies with me.  I could survive with no SSA.  If I take it early and add it to my pensions I can reduce my IRA draws and still live large enough.

I lived modestly and invested my whole life for a goal, to retire earlier than most.  I am going to draw my SSA, live life for ten years and have the ability to seed a nice IRA for my only child that can grow for 35 years so she can retire at 60 instead of 67.  If things go well at all I can also give her a little money sooner and watch her enjoy it.  She is a nurse in training.  I think I can show her the value of keeping Dad out of an expensive nursing home for a couple extra years when I am a PITA.  Is that bribery?      Might sound silly but that is a conversation we are going to have at an appropriate time. 

It's a decision I think all of us need to think out fully.  We can wish we are 90 and in good health but that is unlikely.  There is no cookie cutter answer that fits all.  What are your thoughts on your own plan at this time?

And BTW I am completely onboard with some growth stocks in the port.  I do the same.  I took a few years break from that and I don't like that plan any longer.  All in on dividend yield is not what I am going to do.

"The "when to draw SSA" is a very personal issue I have given much thought to.  I am sure an accountant can run the math and tell me to delay my SSA."

For me the "To SS benefit or to not SS benefit at 62" question will come down to this:

At 62 I will be closer to being able to meet my retirement needs - I think (for all my budgeting until I'm retired I won't be retired) due to continued dividend growth. But I expect to still need to sell some AAPL and GOOGL. So the key item I need to figure out is:

Would my returns from keeping AAPL and GOOGL in my taxable account be greater than the annual 8% SS benefit increase?

The question is simple - the answer will involve math and this is more complicated than it may seem on the surface.

For example, say my AAPL and GOOGL have had 12% gains over the previous five years - take SS, right?

But suppose at age 65 and Medicare eligibility I can meet my needs from dividends alone? SS benefits continue to increase beyond that.

I run cash flows for farmers looking at large capital purchases as part of my real job. I can modify how I do that to assess taking SS vs selling shares. The key is coming up with the right assumptions and I always run at least three - optimistic, pessimistic and neutral. The SS 8% is set so I just need to look at stocks as the comparison.

I don't like math which is funny as sometimes it's a big part of my job. But this retirement planning thing sure has a lot of it. 

"I am going to draw my SSA, live life for ten years and have the ability to seed a nice IRA for my only child that can grow for 35 years so she can retire at 60 instead of 67." Sorry for the variability - trying to figure if inline bold or italicized quotes look better.

I like giving gifts. I have no kids but as soon as they had enough earned income I gave each of my nephews enough to start a Roth. Actually transferred funds through Fidelity into one. One-time deal though if they ever need money - their parents are doing fine so I doubt they come to me anyway - I'd be happy to help out.

Thank you for your thoughts.