slightly early SS?

[kennyd]

I have been toying with drawing SS this year at 65, instead of 66 (full retirement age).  It will cost me 1 dollar in benefits for every 2 I make over $15k .  The up side is that still working will still build my benefits, and my wife, who never wrked much, so draws a small amount, would qualifty for 1/2 of my amount.  The downer is that you never know in this economy if ANY job will keep going.  So far SS hasn't been able to answer the phone for me, I have a call back "scheduled".  All the examples I can find are drawing at 62, investing the money, and then working until 70 or some unreasonable age.  All the husband/wife scenarios assume the wife is 2 years younger, not older as mine is.   figure to work at least until 66 or 67, trying to teach all the tricks and knowhow to the poor saps who will be left, and to leave the boss in as good a position as possible.  Then maybe go in part time for some of the tough problems.  Other times, tomorrow is not too soon to never see the place again.


There is also a bit of money in an old retirement 408b which I will have to get advice on how to draw.


Any of you already done this?


The other little thing is I have no reason not to think that the politicians will  sell MY soul to solve their own problems.

[johnpaulh]

Haven't yet, but I am planning for my retirement early (I'm 52 in a few more weeks)  If I may offer something, I would suggest you research a Roth IRA to roll the 408b into, maybe split it into two, one for you, and one for the missus.  If any of the 408 assets are company stock, you are better off holding the shares in a taxable account rather than cash them in.  That separates them from assets which may be non-taxable under the codes.  A lot depends on how much is in the 408, if the amount is minimal, you can decide if you want to take the hit in taxes and go for a full divestment.  If there is a considerable amount, you may wish to consult a financial advisor (if you have stocks, talk to your brokerage, they give excellent free advice!)

I would not go back to work part time.  Incorporate yourself and file as a business with your state, then hire yourself out as a private consultant.  Tax write offs for the business for travel, office supplies, mileage, vehicle depreciation etc......your old company can hire you on a contractual basis, or per diem.  Gives you the most tax breaks to mitigate the reduced SS benefits.

Best of luck to you....this getting old stuff can get complicated!

[magooch]

I retired at 59 and I don't regret one single minute of it.  That was over 10 years ago.  I would even go so far as to say that early retirement might even save your life.  I changed my eating habits, I changed my off time activities, spent a lot of time in Arizona and picked up a whole new hobby.  Money probably won't be your biggest issue in retirement.  Staying healthy and active is the biggest deal. 


You might find retirement the busiest time of your life.  I don't know how I ever found time to work, but I will admit that I have become really good at putting things off in favor of playing.


The biggest annoyance in retirement is paying way too much in taxes.  There should be a senior discount.