Comments on: Bumping up your Social Security benefit http://www.joetaxpayer.com/bumping-up-your-social-security-benefit/ Financial Commentary For The Average Joe Thu, 09 Feb 2012 00:23:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Social Security Help http://www.joetaxpayer.com/bumping-up-your-social-security-benefit/comment-page-1/#comment-29070 Social Security Help Wed, 23 Mar 2011 00:16:13 +0000 http://www.blog.joetaxpayer.com/?p=486#comment-29070 For older Americans in specific, creating the transition towards a low fixed-income lifestyle is extremely tough, but critical to ensure that when and if your career ends suddenly, you're not hemorrhaging money every month, but are already living frugally and inexpensively. For older Americans in specific, creating the transition towards a low fixed-income lifestyle is extremely tough, but critical to ensure that when and if your career ends suddenly, you’re not hemorrhaging money every month, but are already living frugally and inexpensively.

]]> By: JOE http://www.joetaxpayer.com/bumping-up-your-social-security-benefit/comment-page-1/#comment-1331 JOE Thu, 18 Sep 2008 00:28:13 +0000 http://www.blog.joetaxpayer.com/?p=486#comment-1331 In the 62/70 example I had seen, the total sum that would need to be returned is $130,000. At 70 the benefit would increase by $900/month or $10,800/year. This is an 8.3% immediate annuity (with joint survivor) equivalent. Actually more due the tax which is refunded with the tax return in the year following. As with a number of strategies I try to bring to light, this may not apply to the majority. It takes a 70 or so year old who took their first SS benefits some time prior and now realizes they are in good health, so expect to pass the break even point on this maneuver, and has the cash to pay back. Joe In the 62/70 example I had seen, the total sum that would need to be returned is $130,000. At 70 the benefit would increase by $900/month or $10,800/year. This is an 8.3% immediate annuity (with joint survivor) equivalent. Actually more due the tax which is refunded with the tax return in the year following.
As with a number of strategies I try to bring to light, this may not apply to the majority. It takes a 70 or so year old who took their first SS benefits some time prior and now realizes they are in good health, so expect to pass the break even point on this maneuver, and has the cash to pay back.
Joe

]]> By: JAL http://www.joetaxpayer.com/bumping-up-your-social-security-benefit/comment-page-1/#comment-1320 JAL Wed, 17 Sep 2008 04:02:39 +0000 http://www.blog.joetaxpayer.com/?p=486#comment-1320 Joe, This is very interesting and I'm trying to grasp the implications of this. If you didn't need the SSA money starting at 62, took it anyway, carefully invested it, then at 70 repaid the sum back to the SSA... it sounds like you'd be able to keep all the interest and also have a huge monthly SSA payment starting afterwards. What's the catch? Have you crunched the numbers on this? Best regards, JAL Joe,

This is very interesting and I’m trying to grasp the implications of this.

If you didn’t need the SSA money starting at 62, took it anyway, carefully invested it, then at 70 repaid the sum back to the SSA… it sounds like you’d be able to keep all the interest and also have a huge monthly SSA payment starting afterwards.

What’s the catch?

Have you crunched the numbers on this?

Best regards,

JAL

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