Playing devil’s advocate on Cignetti…

[iueyedoc99]

Young people please read this.

Unless you are physically unable to continue working, or are fabulously wealthy, best to work as long as you can.

You can claim SS at the early age of 62, but with a reduced benefit. The so-called full benefit age is currently 67 (if born after 1960), but this is misleading. The maximum benefit amount is reached if you wait until age 70.

Claiming at age 70 increases your benefit by 24% compared to claiming at your full benefit age.

Jimbo: I suggest you revisit your post in 30 years and see if you still think 62 is 'old'.

But you gave up 8 years of checks to get to the higher amount. Invest that monthly check wisely for 8 years and it will take a lot of time for the higher checks to ever catch up, and for many it never does.

Take someone making $3,000/month. By the time he turns 70 he has been paid $288,000 (not including COL increases or interest). If he waits until age 70, he now gets $3,720 (based on your numbers).

It would take 33 years to break even (age 103).

 

[trailrunner]

I earned $60,000/year. I would have received $1200/month at 62. I waited until 70 and receive $2500/month. It’s a difficult decision but I kept working and never needed it at 62.

 

[YOTHN]

I earned $60,000/year. I would have received $1200/month at 62. I waited until 70 and receive $2500/month. It’s a difficult decision but I kept working and never needed it at 62.

That basic math is simple because you'd need to recoup the $115,200 plus you'd receive about $40k in compound interest ($10%). So think $155k you turned down between 62-70. You make $1,300/mo over the $1200/mo you'd have been making after 70 anyways, so you'll be rough about 82 when you recoup your likely losses (on average).

However, how is someone funding their life from 62 to 70 because my example above is indicating a full investment of their $1200/mo social security payments. That means you would've needed to fund your life via your 401k (which would reduce the compound interest return there) or your savings (which is a waste of compound interest due to it not even being invested).

 

[kmathum]

Hell, I wish I was 45 or 50.

Hell I wish I was 62

 

[YOTHN]

He'll, I wish I was 62

I can't wait until I'm 40...

 

[ams66]

But you gave up 8 years of checks to get to the higher amount. Invest that monthly check wisely for 8 years and it will take a lot of time for the higher checks to ever catch up, and for many it never does.

Take someone making $3,000/month. By the time he turns 70 he has been paid $288,000 (not including COL increases or interest). If he waits until age 70, he now gets $3,720 (based on your numbers).

It would take 33 years to break even (age 103).

This is especially true when each year of good health at that age is more and more precious. Do you want to spend them working?

 

[lxetvrts]

But you gave up 8 years of checks to get to the higher amount. Invest that monthly check wisely for 8 years and it will take a lot of time for the higher checks to ever catch up, and for many it never does.

Take someone making $3,000/month. By the time he turns 70 he has been paid $288,000 (not including COL increases or interest). If he waits until age 70, he now gets $3,720 (based on your numbers).

It would take 33 years to break even (age 103).

Please link a break-even calculator or an article that supports your age 103 number. You state 8 years of checks, but you seem to be assuming only three years of increases at 8%/yr. You don’t include the five years of increases from age 63 through 67?

If you are not in good health, are a drug addict likely to OD, are unvaccinated or have some other reason to assume you will not live a normal lifespan based on your current age, then take your SS early.

Taking it early and investing it may sound like a good plan, but the stock market is volatile and there are no guarantees.

Social Security is insurance (or at least a Ponzi scheme), not an investment. You will get the payments plus COLA as long as you live. If you croak and you have a surviving spouse and you earned more than her\him, your spouse will collect your higher payment for the rest of their life.

When to claim depends on your circumstances; crunch the numbers first. Waiting makes much more sense for me.

 

[kmathum]

I can't wait until I'm 40...

If you're serious take my advice young man. Don't rush it.

 

[iueyedoc99]

Please link a break-even calculator or an article that supports your age 103 number. You state 8 years of checks, but you seem to be assuming only three years of increases at 8%/yr. You don’t include the five years of increases from age 63 through 67?

If you are not in good health, are a drug addict likely to OD, are unvaccinated or have some other reason to assume you will not live a normal lifespan based on your current age, then take your SS early.

Taking it early and investing it may sound like a good plan, but the stock market is volatile and there are no guarantees.

Social Security is insurance (or at least a Ponzi scheme), not an investment. You will get the payments plus COLA as long as you live. If you croak and you have a surviving spouse and you earned more than her\him, your spouse will collect your higher payment for the rest of their life.

When to claim depends on your circumstances; crunch the numbers first. Waiting makes much more sense for me.

Article? Just use your calculator. The break even for most is closer to 90 but 103 would be the number using the figures given - ie $288,000/720 = 400 months.

EDIT I see what you mean he says it’s 24% to wait 3 years and I thought he meant 8, so that would make it 64%…
3000 x .64 = 1,920
288,000/1,920 = 150 months
Age 82.5*
*If you earn no interest ever and SS isn’t reduced.

Please do your own research (don’t base this decision on a FB forum, and especially not an IU one!)

 

[Orford]

Wow I started this thread in IU football post and ended in marketwatch 😀

 

[Tegray1]

Where are you getting the 4 million NIL number?

It's been reported that a donor committed to 3 million NIL to get him to take the job. Probably Cook. Hoosier Connect is already at a million with their November campaign. Huge week for NIL donations in addition from fans.

 

[iubhounds]

It's been reported that a donor committed to 3 million NIL to get him to take the job. Probably Cook. Hoosier Connect is already at a million with their November campaign. Huge week for NIL donations in addition from fans.

And probably a LOT more NIL coming in after CCC's performance yesterday

 

[Tegray1]

And probably a LOT more NIL coming in after CCC's performance yesterday

Yes. Ticket sales will also go through the roof. He smoked a couple reporters yesterday and I'm ready for him to rip the grass lot people who don't come to games.

 

[DANC]

It's been reported that a donor committed to 3 million NIL to get him to take the job. Probably Cook. Hoosier Connect is already at a million with their November campaign. Huge week for NIL donations in addition from fans.

Yeah, I saw reports of that after I posted here.

My question is, if they can do it now, why couldn't they have done it 2 years ago? Lack of faith in Allen, maybe? I don't know. I'm glad big money is stepping in, but it's got to be an annual thing. And I'm sure it will be if Coach Cig wins right away.

 

[DANC]

Please link a break-even calculator or an article that supports your age 103 number. You state 8 years of checks, but you seem to be assuming only three years of increases at 8%/yr. You don’t include the five years of increases from age 63 through 67?

If you are not in good health, are a drug addict likely to OD, are unvaccinated or have some other reason to assume you will not live a normal lifespan based on your current age, then take your SS early.

Taking it early and investing it may sound like a good plan, but the stock market is volatile and there are no guarantees.

Social Security is insurance (or at least a Ponzi scheme), not an investment. You will get the payments plus COLA as long as you live. If you croak and you have a surviving spouse and you earned more than her\him, your spouse will collect your higher payment for the rest of their life.

When to claim depends on your circumstances; crunch the numbers first. Waiting makes much more sense for me.

When I was doing calculations, I figured the break-even point is around 83 in my case, if I took it at 62 vs 70. That's without investing the money. I ended up taking it at 64 because of some major health problems, but my wife is waiting until she's 70 and hers will be over $5k per month.

 

[Tegray1]

Yeah, I saw reports of that after I posted here.

My question is, if they can do it now, why couldn't they have done it 2 years ago? Lack of faith in Allen, maybe? I don't know. I'm glad big money is stepping in, but it's got to be an annual thing. And I'm sure it will be if Coach Cig wins right away.

We had fans booing Penix vs. Cincinnati. Parents of players doing it. Lack of faith yes. Hiller yes. Lost the momentum after 2 bowls. Too much love. IU administration wanted a great person as a coach. Yesterday they decided to hire a cocky tough demanding coach. Players who don't want to be coached hard will leave. Toughness is back in IU football.

 

[iueyedoc99]

We had fans booing Penix vs. Cincinnati. Parents of players doing it. Lack of faith yes. Hiller yes. Lost the momentum after 2 bowls. Too much love. IU administration wanted a great person as a coach. Yesterday they decided to hire a cocky tough demanding coach. Players who don't want to be coached hard will leave. Toughness is back in IU football.

A bit of CKW edge without the total jackassery hopefully.

 

[ORG]

That's when you can start collecting social security. People don't last forever. I'm in my 30s, and I can't do the stuff I did when I was in my twenties. If I make it to my '60s, work is about the last thing I'm going to want to do.

You won't know that until you get there. You may find out that working can bring enjoyment and meaning to your life. And it may be an entirely different job or an entirely new career. Hopefully it will be doing something you ENJOY doing.