Planning cruising and savings

[Paul L]

Originally Posted by Cadence

The OP seems to think SS is 62 for he and his wife. Is there an age at which people are grandfathered for the 62? As I said I'm not his CPA, lucky him, I had just thrown out some things to consider.

You can take early SS at age 62 at a 25% reduced rate for life. Full SS retirement depends on your birth year and is around age 66.

[Paul L]

Originally Posted by Boosted

Is it standard to not receive a pension in today’s workforce? Is that why people need to have a safe amount of savings?

I’ll have a pension so that’s my plan...everything else is foreign to me.

Defined benefit pensions are pretty rare these days in the US compared to the 1950-1970 era. Today they are primarily from government employment.

[Captain Randy]

Yea I know.....

[Captain Randy]

Actually you can take early SS at age 62. Full benefit begins at 66. Its much closer to 50% at 62 but that's ok. Not waiting until 66.

[Paul L]

Originally Posted by Captain Randy

Actually you can take early SS at age 62. Full benefit begins at 66. Its much closer to 50% at 62 but that's ok. Not waiting until 66.

It's not 50%.

if full retirement age is 66, the reduction of your benefits at age 62 is 25 percent; at age 63, it is about 20 percent; at age 64, it is about 13.3 percent; and at age 65, it is about 6.7 percent.

[Captain Randy]

Yes we are eligible at age 62. Not a grandfather thing. I recommend you check your account where all this information is available.
Good luck !

[Captain Randy]

Not arbitrary at all. Has to do with exiting work strategy. Next bonus to complete the forecast for 2019 is in 10/19. We could save more but then don't want to leave early summer either in hurricane season. Much to consider I know....

[Drew13440]

Originally Posted by Captain Randy

Not arbitrary at all. Has to do with exiting work strategy. Next bonus to complete the forecast for 2019 is in 10/19. We could save more but then don't want to leave early summer either in hurricane season. Much to consider I know....

Understood. Bottom line though, you are close. There was a guy in here a while back with 18k in savings to sail the South Pacific, including boat purchase. Yours is not a pipe dream, you'll get there soon.

[sailorboy1]

Sad the number of people on this thread that are giving advise about SS, Medicare, and 401k/IRA withdraws that don’t understand the rules etc.

Randy you have enough to go now. Look into the withdraw rules for your IRAs and the income tax levels for the 2 of you to decide how the SS and withdraws work out so you just make a silly mistake. But over a $100k better cushion for waiting a year is a major decision. It comes down to your physical and mental health.

[denverd0n]

Originally Posted by sailorboy1

Sad the number of people on this thread that are giving advise about SS, Medicare, and 401k/IRA withdraws that don’t understand the rules etc.

Isn't it, though? These are important issues, where a difference of a few months might cost you thousands of dollars over the course of your life, and people just spout off answers without any clue what they're talking about.

[Crazcarl]

Originally Posted by sailorboy1

Sad the number of people on this thread that are giving advise about SS, Medicare, and 401k/IRA withdraws that don’t understand the rules etc.

Randy you have enough to go now. Look into the withdraw rules for your IRAs and the income tax levels for the 2 of you to decide how the SS and withdraws work out so you just make a silly mistake. But over a $100k better cushion for waiting a year is a major decision. It comes down to your physical and mental health.

What rules specifically? I saw some mistake on the SS, and medicare, but curious about the 401k / IRA info people were discussing and mistakes that were said about that.

[Captain Randy]

Ok to clear up the miss information from folks like Dev. Here are the actual SS figures right off of MY statement. My wife's percentages are similar albeit a bit smaller numbers starting with $1,400 at 62. So I was wrong. Taking SS at 62 is more than 50%. YMMV of course depending on your own work history. Both of us have paid the maximum. I'm not waiting until 66 and 10 mo. and of course not waiting until 70. I won't care about Medicare unless or until I come home. We can withdraw money now from our IRA without penalty but would have a tax obligation of course.

Age 62 $2,057
Age 66.10 $2719
Age 70 $3,719

[Cadence]

I can give you an exact on Medicare cost out of SS. Wife and I. $4466.40. Supplement plan F, $4803.27. You may shop the supplemental and save a dollar or two. So take that for what it is worth. A little over 9K. I guess you can opt. for a lesser plan if your health is good and you want to roll the dice.
That's at 75 if age is a factor but you will be there before you know it, so plan for the future also.

[Crazcarl]

Originally Posted by Captain Randy

Ok to clear up the miss information from folks like Dev. Here are the actual SS figures right off of MY statement. My wife's percentages are similar albeit a bit smaller numbers starting with $1,400 at 62. So I was wrong. Taking SS at 62 is more than 50%. YMMV of course depending on your own work history. Both of us have paid the maximum. I'm not waiting until 66 and 10 mo. and of course not waiting until 70. I won't care about Medicare unless or until I come home. We can withdraw money now from our IRA without penalty but would have a tax obligation of course.

Age 62 $2,057
Age 66.10 $2719
Age 70 $3,719

Thanks for the real life numbers.

If they actually delayed SS, and withdrew from IRA first, their taxes would be nil or close to it I believe, depending on how much you withdraw. Another way to pay less in taxes, and get more from SS when the time comes.

[sailorboy1]

Originally Posted by Captain Randy

Ok to clear up the miss information from folks like Dev. Here are the actual SS figures right off of MY statement. My wife's percentages are similar albeit a bit smaller numbers starting with $1,400 at 62. So I was wrong. Taking SS at 62 is more than 50%. YMMV of course depending on your own work history. Both of us have paid the maximum. I'm not waiting until 66 and 10 mo. and of course not waiting until 70. I won't care about Medicare unless or until I come home. We can withdraw money now from our IRA without penalty but would have a tax obligation of course.

Age 62 $2,057
Age 66.10 $2719
Age 70 $3,719

BTW - SS says you will live to 79.9

So that answers your question about how long