It was announced today that the Social Security COLA will be 3.6% for 2012. 8)
I just don't understand the math.
Quote from: MM on October 19, 2011, 07:28:23 PM
I just don't understand the math.
Substitute what your monthly check was this year in place of $1000:
$1000. * 1.036 = $1036. *=multiply by
$840. * 1.036 = $870. ;)
Edit: Oops. :) You aren't getting social security. If you were that is how to figure it. Parents are maybe?
And the Medicare insurance fee will go up $36.00.
I am going to be rich. What am I going to do with all the extra money I am going to get next year? ::) Now I know, the government will take it out before I get it to pay for the increase in Medicare. :(
You can spend it lavishly on your new house :D.
Yes, they are going to take some of that back for Part B of Medicare. What I saw the increase will be $10.60 per month or everyone will pay $106.60 per month for Part B premium.
However there is this quote from the news:
An Obama administration official suggested the Part B premium could be lower than the projection, but did not reveal the amount.
"The administration will have an announcement about premiums in the days ahead that we believe will alleviate some of these concerns," said the official, who spoke on condition of anonymity. The official was not authorized to speak publicly about the upcoming announcement.
There the Obama administration goes again, cutting payment rates into both SS and Medicare funds while they say the funds are going broke.
Well those scalliwags have figured a way ,one way or the other to pretty much screw people out of what they worked for all their lives .
I'm in the group they moved the retirement age to 66 .
If over the years the polititions would have left it alone there would be so much money in the fund they could pay benefits at 50 .But no they finagaled it to build grain elevaters and finance a zillion other things ,tapped into to it and ran it dry .
So big deal now they throw the retirees a little bone now to make it right ? Hang-em all .
I'm gonna be rich cause I won't have to pay the increased medicare 8) 8) 8) at least for a while. :o
Larry, you are so lucky. ;)
Quote from: Al_Smith on October 20, 2011, 04:14:52 AM
Well those scalliwags have figured a way ,one way or the other to pretty much screw people out of what they worked for all their lives .
They also figure how to do the same while they are still working :D
I became eligible for SS this past January, but due to my estimated earnings, I didn't receive my first SS check until the 4th Wednesday in May.
Hard to imagine they hold out almost half of a years entitlements because you earn over the allowed minimum.
But as it was explained to me, the money withheld will be folded back into my SS account and will gain me earning later.
But the big thing is finally the SS system is keeping up with the COLA.
Wondering if there will be SS when I get to 65 ? Tim
Quote from: T Welsh on October 20, 2011, 09:19:43 PM
Wondering if there will be SS when I get to 65 ? Tim
Well it should be there. Actually the SS and Medicare trust funds combined have about three trillion dollars of assets. I wish I could be going broke as they say and have three trillion dollars of assets. ::)
Problem is the money has already been spent by those scoundrels in Washington, DC and there is nothing but IOU's in those trust funds.
It's a travisty and an embarrisment that they could take what started out as a good idea and screw it up so badly .They only way to punish the culprits at this point is to dig them up and grind their bones to mix with concrete for an inter state highway .
Quote from: Al_Smith on October 20, 2011, 10:51:12 PM
It's a travisty and an embarrisment that they could take what started out as a good idea and screw it up so badly .They only way to punish the culprits at this point is to dig them up and grind their bones to mix with concrete for an inter state highway .
Al, I like your idea ;D The only problem I see with it is, that us tax payers are going to have to foot the bill for digging them up and knowing the gubberment it would cost about $500 hr for a backhoe and operator. Tim
About maybe 35 years ago or so they came up with various tax sheltered ideas such as 401K's ,IRA's etc . Now you just watch those pirates find a way to snatch hold of them or in some way reduce a persons SS if you have any .I do and it concerns me what those rascals are capable of .
I should have buried the money in milk cans in the back yard .Then again most likely the metal detector wouldn't work and all I'd find would be old horse shoes .
> I should have buried the money in milk cans in the back yard .Then again most likely the metal detector wouldn't work and all I'd find would be old horse shoes.
And a possible prison stay. Actually, if you'd buried your cash in the backyard you'd instantly be a criminal if caught. If caught, you'd have to prove it didn't come from illegal activities. Since I doubt you'd have kept sufficient records for the gov'ment, it would all be confiscated until you could prove where each dollar came from. That's Homeland Security.
They prefer you keep your cash where they can use it before they devalue it for you.
Regarding cost of Medicare Part B
I spoke with an insurance agent today and he said the premiums for Part B would go down to $99 per month.
Made me wonder if the fact that next year is an election year had any impact on the drop in rates and COLA increase
Hope the agents facts are correct - I just applied for everything this month
no next year being an election year surely has nothing to do with the social security check increase. the politicians in Washington are just concerned for those of us trying to get by on our social security checks. ;D
Anybody know what our lawmakers' increase was?
smiley_airfreshener
Quote from: edkemper on October 27, 2011, 06:20:45 PM
And a possible prison stay. Actually, if you'd buried your cash in the backyard you'd instantly be a criminal if caught. If caught, you'd have to prove it didn't come from illegal activities. Since I doubt you'd have kept sufficient records for the gov'ment, it would all be confiscated until you could prove where each dollar came from. That's Homeland Security.
They prefer you keep your cash where they can use it before they devalue it for you.
Yeah I already went through that drill when I bought the house I'm living in .Even if you have it in the bank you have to prove where it came from if you draw out a large amount .
I've dealt with the IRS and can honestly say they aren't that bad .Of course there are exceptions to every rule .
Now here's one .There used to be the urban legion that if you withdrew or deposit in excess of 10 grand it threw up a red flag to the IRS .Not neccessarily so .
A person I know auctionere bought a chunk of land in Ohio ,about half a millon dollars worth .Payed it off over the course of less than a year ,9900 bucks at a time .Now the cheese gets binding he has to prove where it came from ,auctionere is the key word here. Orwille was right when he wrote the fictional works of "big brother " he wasn't so far off was he ?
Quote from: Al_Smith on October 20, 2011, 04:14:52 AM
If over the years the polititions would have left it alone there would be so much money in the fund they could pay benefits at 50.
If the politicians participated in Social Security instead of having their own untouched version, we wouldn't be here today.
Quote from: Al_Smith on November 01, 2011, 11:05:13 AM
Quote from: edkemper on October 27, 2011, 06:20:45 PM
Now here's one .There used to be the urban legion that if you withdrew or deposit in excess of 10 grand it threw up a red flag to the IRS .Not neccessarily so.
I can assure you the $10,000 threshold is true. In fact, when I took out less than $10,000 a couple of times over a couple of months, Golden One sent me a letter advising me that after they reviewed my account activity, they suspected I was trying to deceive the IRS. Meaning, I am suspected of being a criminal.
I live debt free. I buy what I can afford. I can afford more with cash because I can negotiate from a better position. Plus there's the advantage of not getting the bill at the end of the month.
Then there's the Bank Crisis created by dishonest banks and the government. At this point, I can see no benefit to having money in the bank. I don't need more credit. I already have over $200,000 worth of available credit cards. I'm not likely to be financing anything anymore. Buried in the backyard at least I know where it is and it's there when I want/need it. And I don't have to fill out IRS paperwork to take advantage of an immediate cash price. I get more discounts with cash than the minor interest I'd earn in a bank.
:D Well if I did get the notion to bury it in the back I wouldn't advertise it over the internet .
Anyone consider using a "401-k bridge" to delay claiming of Social Security to age 70? Roughly a guaranteed 8% return if you or your spouse live long enough to collect the bigger checks. Made pretty good sense when interest rates were .05% maybe not so much when T-bills are 5.25%?
I plan to not take until 70 to maximize benefits that are subject to long term cost of living adjustments.
Quote from: peakbagger on July 14, 2023, 11:24:25 AM
I plan to not take until 70 to maximize benefits that are subject to long term cost of living adjustments.
Back before I was eligable I took multiple seminars on how and when to retire and draw SS, I was then a Govt supervisor and was to be able to answer basic questions. If you knew exactly when you would die the decision would be easy although I'm glad I don't. Anything I now say is 12+ years old, if you start SS at 62 there is a reduction, then waiting till your full retirement age which depended on year born you got full SS and waiting got you a bit more but you also get to draw it less years because of waiting. Back then on average if you waited till 66 instead of 62 your break even age was mid 80s and from there you made out by waiting. Waiting till 70 your break even age was closer to 90 because of the money you didn't collect earlier. You can confuse the numbers even more by figuring what if you collected early and reinvested that money elsewhere, the "break even" age gets even older. Good Luck and live long!
I elected to receive an increased pension amount until I'm 62. At 62 they reduce my pension by an amount equal to my estimated SS payment at 62.
What helps me is I've contributed to SS 5 of 8 years since because I've been employed. So my SS will be more than estimated in 2015.
I studied about it awhile and started taking my SS at 62 and left my 401k alone.The way I figured it if something happens to me SS will stop no matter how much or little I have drawn.401K will still be there for my wife ,son or grandson if there's anything left.My wife draws 1/2 as much SS as I do and the way I understand it if she outlives me she would quit drawing hers and draw mine. I hope to draw it a long time but you never know.My uncle waited and never drew the first check :'(
My Dad retired into his union pension at 60, and started getting SD at 62. With the early retirement deductions, he said the break even from waiting was in the 80's. With 2 heart attacks by 50 he didn't want to leave any money on the table😊
I sat down and figured out what I wanted for a monthly SS check. I knew how much my SS increased if I delayed. Ended up that collecting at age 68, 4 months worked best for me. At age 72, I had to start to take some money from my SEP.
My wife took her SS at age 66. Hers is higher than mine. Since all our bills are paid, we can live on SS with money to spare without touching the 401K or Roth money. When my wife starts to take her 401K, our tax situation may change, and things won't be as rosy.
0ne of the variables I am pondering is males on my side of the family don't have a history of long life expectancy. My SS will be higher than the wife's, will Mrs. Stavebuyer benefit if I delay claiming and check out before she does??
Spousal benefit is half of the deceased's benefit or her retirement benefit, whichever is higher.
Benefits for Spouses (https://www.ssa.gov/OACT/quickcalc/spouse.html)
The longer you delay, the higher the benefit. It doesn't matter how long you live. There's a lot of other things to consider, including the amount of assets you've been able to collect. At some point, they're going to have to be liquidated and the proceeds will be distributed. The question would be whether your wife can enjoy her golden years on that asset base and the SS benefit. No matter what you do, there is always risk. Much of that risk you have no control over.
Well, ain't none of us getting out of this alive. That's the only thing a man really knows about life.
I'm going to be 59 next month. Ive never given my SSI a thought save one time. I got curious one dark cloudy day and tried to open an account at the SSI site to take a look at what I'm getting. If I ever do. I made a hash of that, got locked out and never went back.
I figure I'll collect around 62. I ain't a gambling man by nature.
My Dad also took a deduct on his union pension, so that my Mom will continue to get the full benefit amount once he is gone.
I'm glad I got a union job when I was fresh out of high school. A lot of guys I worked with out in the woods did that their whole lives. Nothing but SS for them, and many of them are getting to be pushing 60 and going, "oh crap!". I know a couple of truck drivers that jumped ship this spring to go work for the paving outfit I used to work for. They'd both been in the woods 30 years give or take, and they decided to go where they could get a pension built still.
I didn't get a union job or build a pension because I was smart. At the time I was either going to be young forever or die before I got old, if I could've taken the money and spent it on something foolish I would've🤦 All the union wages I made are gone, I'm glad that pension is still there!
I think I stated this somewhere else before. My wife passed when she was 50 andy son was 6. I went to file paperwork at SS. The agent informed me about survivor benefits.
My son got 75% of my wife's benefits until he turned 18. I got the same for taking care of him until he turned 16. Since his birthday is in April, his benefits continued until he graduated from highschool in June. Yeah, I was getting 150% of her benefits.
At that point, my single benefit went up to 100% of my wife's SS. It wasn't much, just under $900, because she stopped working when our daughter was born when she was 32. So, I looked at my benefit then vs. at 66 & 4 months and 70. I decided to take it then at 63 and 4 months. And the huge COLA this spring helped make up my mind. I used it to finish paying off the cabin property and now debit free. It allowed me to do the trips to Europe this spring.
My dad passed at 53 and his dad at 52. Every day is a gift. I still think I'm in my 30s but some mornings till me otherwise!
I ran the numbers a while back - This is a rough calculation, I am not a financial planner, Your mileage may vary !!
I thought what if you took SSI and invested the whole amount? It gives you an extra 2 or 3 years before the 70 amount beats it
(https://forestryforum.com/gallery/albums/userpics/63484/ff-ssi1.jpg?easyrotate_cache=1689434760)
This chart is if you retire at 62 or 67 and stop claiming work income at that time. You get to 78 or 81 before the 70 is better!
(https://forestryforum.com/gallery/albums/userpics/63484/ff-ssi2.jpg?easyrotate_cache=1689434759)
This chart is if you keep working to 70. Assuming you work enough to remove 50% of your SSI benefit.
The 70 amount passes the others at 74 to 76!
(https://forestryforum.com/gallery/albums/userpics/63484/ff-ssi3.jpg?easyrotate_cache=1689434761)
I am in the start at 67 group anyway. Will I live past 75 and the 70 amount is a better option ?? ??
My FP told me they are now using 3/4 of the SSI amount for planning!
Anymore I don't have to do very much cash work to make $100 or more a day. A mowing job, fix a whatever, help a buddy on a siding job, build a picnic table/Adirondack chair/birdhouse, plane some lumber, make some molding - you name it. In a month it isn't hard to make up any SS difference if you are creative and have a few resources.
Knock on wood, I have longevity on my both sides of my family and one parent lived to 93 and the other 83. I think a lot of folks dont factor in the value of annual cost of living adjustments (COLAs) to SSI. Few pensions have COLAs, and annuity payments take a big hit if there is COLA rider added in. Pension checks may be great early on but after 7 or 8 years those checks really start to take a beating without a COLA. Sure a good investor can usually beat inflation with IRA money but as they age most go for less agressive investments and IRA money is taxed. SSI is not taxed over age 70 so having a COLA in place for the larger check by waiting to 70 is important to me. The spousal benefits are based on the amount of the primary beneficiaries check, so better to spend down the IRA money early before RMDs kick in as the taxes on RMDs off of IRAs can add up and have the surviving spouse get a bigger check.
My guess is any political party that messes with SSI benefits is not going to be around long so I am willing to bet that it will be there when I am 70 in 7 years, in the meantime I will live off of other savings and investments. Long ago I planned that SSI might not be there so anything I get is bonus.
When you're looking at SSA.gov and doing the various payouts, the benefit estimates assume that you continue to work and contribute. If you "retire" and live on savings until age 70 to increase your social security check, you won't be contributing much to Social Security taxes. And then there is the COLA variable. Will your potential benefit increase each year due to COLA if you haven't yet filed? Clear as mud. lol
I see the side of the early filers. You paid in and you want it back. My Dad paid in from the day the system started and never collected a dime. My mom collected on his record for 6 years, so they didn't get back what they paid in.
Still looks to me that the payout stands to be greater if you wait. If you don't live long enough to cash the checks your heirs potentially lose out on the money you spent delaying the SS. 5 years from now that may not buy a new pickup.
Really appreciate everyone's input. Even a mathematically larger outcome isn't always a universal fit.
I am just glad to see y'all are optimists and believe the money will be there to collect.
Quote from: peakbagger on July 15, 2023, 01:59:41 PMSSI is not taxed over age 70 so having a COLA in place for the larger check by waiting to 70 is important to me.
Are you thinking Social Security is not taxed after age 70? I need to be educated here..........
Rules change, my RMD from my IRA had to start when I was 70-1/2. It's 72 now and I think changes to 73 this year. Changes again to 75 sometime in the future.
I remember what Carl Icahn did to TWA pensions some years ago. I don't know the final outcome but it was in court a very long time and folks lost money.
Quote from: TroyC on July 15, 2023, 04:25:07 PM
Quote from: peakbagger on July 15, 2023, 01:59:41 PMSSI is not taxed over age 70 so having a COLA in place for the larger check by waiting to 70 is important to me.
Are you thinking Social Security is not taxed after age 70? I need to be educated here..........
Not taxed by the federal government, maybe by some states?
I can't find where the Feds stop taxing SS. Everything I see says they continue to tax until you die. They don't count as 100% of the payment is taxed. I believe the rate is 50% to a certain point, then its 85% is counted as taxable income. There is a standard deduction of $27,000 for a married couple, so if all you have is SS as income, you might be able to escape not paying taxes. When the pensions, RMD and the like kick in, you might fall into the zone of taxation.
I was wrong, the fed actually continues to tax SSI but for many people the SSI income is less than the standard deduction.
85% of my SS is taxed because I have retirement income.
It is my understanding that if SS is your only means of income, it is not taxed and you do not have to file.
I do not know about states taxing SS, I'm in Florida and do not have to file state taxes.
For me it was a no brainer to start SS at 62. When the numbers were ran then, I needed to live in my mid 80's for taking it at 62 not to be a good idea. My dad passed at 48 mom at 76. I had heart failure at 44 and more health issues at 57 when I quiet working in town. We have farms for income and a cell phone tower on one of the farms. I took my union pension at 59 and a half as I needed the health insurance that I could receive from it and to make sure my wife would get it if I passed. It will be six years in Sept since I retired early and not yet to take any money out of our 401 K funds. Still need just under two years to get to medicare. That would save me a fair amount of money on insurance.
I had a plan and followed it .Invested heavy in 401K's ,stock market ,mutual funds etc .Started SS at 66 and didn't retire until 70.5 years old ,now 75 .I've not yet got into the bank account the SS goes and unless things change likely never will .