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umpqua
Junior Nomad
Posts: 29
Registered: 12-10-2006
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Choosing Early Retirement or Maxing SS Benefit?
I apologize if this is in the wrong forum or if it's already been discussed.
I'm interested in knowing the thoughts and opinions of the Nomad folks on social security, retiring and all that stuff. My "full" retirement age is 66
years and 8 months. I would "max out" my ss benefits if I worked until 70. I'm almost 56 so I still have a few years left to go before making a
decision one way or another. I plan to continue putting as much back in my 401k as I can.
I've run some rough numbers and the amount that I would receive from ss at age 63 and the amount that I would receive at full retirement at 66/8months
would be X. By my calculations I would need to live to my early 80's to reach breakeven from the early retirement decision. My thought is to take the
money and run at 63 and try to find an inexpensive place to live....Mexico, Belize, Nicaragua. My thought also is that the US Government would like
for me to work as long as I possibly can to insure that by actuary tables that they end up paying me as little as possible in ss benefits.
I figure that if I work till 63 that I would have about $2,200 in ss benefits that could be supplemented with 2-3 hundred a month from the 401k. So
MAYBE $2,500 a month. I'm single but it would be "great" to have a lady friend that has aligned ideas so that expenses could be shared (referral's
appreciated!).
Sorry for the ramble but I'm seriously interested in knowing others thoughts. I'll bet some folks here are already ahead of me and have made a similar
decision? Are you happy with that decision or do you regret cashing out early?
Thank you.
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capt. mike
Elite Nomad
Posts: 8085
Registered: 11-26-2002
Location: Bat Cave
Member Is Offline
Mood: Sling time!
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As Steve Miller aptly said......take the money and run!!
formerly Ordained in Rev. Ewing\'s Church by Mail - busted on tax fraud.......
Now joined L. Ron Hoover\'s church of Appliantology
\"Remember there is a big difference between kneeling down and bending over....\"
www.facebook.com/michael.l.goering |
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SFandH
Elite Nomad
Posts: 7084
Registered: 8-5-2011
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Since I'm collecting social security I advise everyone to keep working, paying into the trust fund as long as they can. 
Seriously tho, don't make a plan that would preclude you from living comfortably in the United States. You may want to move back.
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bajagrouper
Senior Nomad
Posts: 964
Registered: 8-28-2003
Location: Rincon de Guayabitos, Nayarit, Mexico
Member Is Offline
Mood: happy and retired
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I went to a pre-retirement seminar put on by my employer and they had a representative from SS there, I had already run the numbers my self but I
asked the dude from SS to make sure. He said if I took my benefits at 62 instead of 65 it would take 17 years to break even, I would be 79 years old
and maybe drooling by then,LOL......
I also concur with SFandH, everyone else should keep working till ay least 70.......
I hear the whales song
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umpqua
Junior Nomad
Posts: 29
Registered: 12-10-2006
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Thanks SF. That's good advice.
My "plan" will be to hold onto my house in the US and rent it. That way if I do decide living south isn't for me I'll have a place to return. My
thought is that I will live south 8 months out of the year and then return to the US for 4 months in the summer where I will can get a cash paying job
from a friend that has a business....that's also in a cheap place to live. That would be an additional under the radar supplement to my income.
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umpqua
Junior Nomad
Posts: 29
Registered: 12-10-2006
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So Baja I assume that you cashed out at 62 and you're living in MX now? No regrets about the decision?
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Alm
Ultra Nomad
Posts: 2725
Registered: 5-10-2011
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How one can expect an answer tailored specifically to his situation? To me $2,200 sounds like a lot of money. Because I'll be getting much less from
the govt when I retire. The plan is still to move to Mexico - if my health will not make me scrap the plan. You can't know what's going to happen in 7
years from now. You can't even know what's going to happen next year. You don't know (and we don't know) what kind of standards you will need after
moving there, and this varies A LOT from person to person.
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AKgringo
Elite Nomad
Posts: 6004
Registered: 9-20-2014
Location: Anchorage, AK (no mas!)
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Mood: Retireded
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I retired at 62, with a modest union pension plus SS. It would not have been possible for me to have much of a life on that much income if I was
still carrying a mortgage or rent.
I would like to have put in a couple of more years to fatten my pension amount a bit, and save some cash, but factors other than finances prompted me
to retire early.
No regrets here! Sure, a larger monthly stipend would be nice, but I am getting expenses covered plus get to travel on my schedule!
One bit of info that doesn't show up in most actuarial tables is; How long does the retiree live after retiring early vs later? Longevity goes to
the early bird, from what I read at the time.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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Skipjack Joe
Elite Nomad
Posts: 8084
Registered: 7-12-2004
Location: Bahia Asuncion
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I think that a lot depends on the lifestyle you intend to live on after retirement. My biggest surprise is how much is going on gas. If you intend to
live a sedentary life and your home is paid off then $2200 is enough. Gas in Baja is just as high as here and things are far apart there. Again, it
depends on your lifestyle.
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JoeJustJoe
Banned
Posts: 21045
Registered: 9-9-2010
Location: Occupied Aztlan
Member Is Offline
Mood: Mad as hell
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I'm in the same boat as you Umpqua, and so I can't give you advice on what I did. For me, it's a wait and see game, and when I get to the age of 62, I
will see how I feel, how I still enjoy my job, or not, and I'll look at my retirement savings. That will determine if I retire at age of 62, or go on
to 66, and eight months. God forbid, I will wait till I'm 69 or 70, when social security actually provides a good monthly stream of income if you can
wait that long.
Now if I were you, I'd ask, how is your health? Do you smoke, are you overweight, did your parents die at an early age? If you answer yes, to two or
more questions, I might retire early, and at least enjoy a little bit of retirement early, before kicking the bucket.
Do you like your job, or do you hate your job, and wake up every morning using all of your will, strength and energy to stop you from committing
suicide because of your job, or do your think of going postal on your boss or fellow employees because of what they have done to you, or you
perceive something about them, or you have paranoid thoughts that they are plotting against you?
So if you hate your job, you might want to retire early. It could also be that you're the boss, and you love tormenting employees under your
control, and you enjoy this, and if so, you might want to continue working. ( some people who retire early actually get bored and then die)
You can also retire at age of 62 and still work, but you can't make over $15,000 dollars, because once you go over that limit of $15,000 and change,,
one $1 dollar will be deducted from your Social Security benefit for each $2 you earn above the limit. Now if you wait until full retirement at age
66 and 8 months, you can work all you want, and still collect social security.
You might also want to consider the political landscape, if Hillary Clinton, is elected, social security will be safe for another eight years or so,
but if a Republican wins the White House, who knows what they will do with social security, but it will probably be safe for older people nearing
retirement. So vote democrat, if you don't want to cut your own throat, and keep praying the early retirement option of getting SS benefits is still
around.
I never been to Nicaragua, but I hear it's nice, and they don't have the drug problems other Latin American countries have. Mexico is a great place to
retire in. Belize, is a nice place to vacation in, especially if you scuba dive, and it's great English is the official language, and most people
speak English in the tiny country, but the country is very very poor outside the hotel resorts. It just doesn't seem very appealing outside the
tourist areas.
Now for being single in a Latin America country, and wanting to find a lady friend to help with the rent, food and bills. For me it's a "no brainer"
forget finding and American woman your own age. Find a nice Latina, in the foreign country you decide to live in, who is perhaps about half your
age, and you pay the rent. Trust me, you will be happier, and you should have enough money to live off of based on what you said in your post.
[Edited on 8-5-2015 by JoeJustJoe]
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bledito
Nomad
Posts: 420
Registered: 7-6-2013
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I took an early retirement at 53 and have been working on and off for the past few years. my pension being a 72t because of my age is about half of
what I would get at 59 1/2 that is why I still work enough to get by. I still pay off the house here. My plan is to continue work till 59 1/2 use my
full pension and my spouses full pension at that time. I can skip working then if I choose, spend winters in Baja and summers in the states. If my 401
survives the pending doom and gloom hawkers I should be just fine supporting both homes one stateside the other in Baja. My father and I often spoke
about SS income and when to take it. He always said take it as soon as you can and enjoy it. the payback is like you say years and years to break
even. At 79 I won't be doing as much or eating as much or drinking as much as I will be able to do the years between 60 and 75 if I even live that
long. so when SS kicks in early for both of us it is a bonus round somewhere around 30,000+ a year between us. that on top of our pensions will be
more than i'll need. I can always sell out the stateside home easily enough and have a profit enough to rent someplace stateside if I choose to as an
option. Is 2500 a month Say you rent at 1000 a month 300 for utilities leaves you 1200 for food and play. seems like enough. I know folks living on
1700 a month here in the states. paying rent and all the rest. live and spend humbly enjoy the free stuff.
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Lee
Ultra Nomad
Posts: 3495
Registered: 10-2-2006
Location: High in the Colorado Rockies
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I also concur. Better to have too much than too little money in your twilight years. And have enough to live in the US if you change your mind
about a 3rd world country.
US Marines: providing enemies of America an opportunity to die for their country since 1775.
What I say before any important decision.
F*ck it.
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bajabuddha
Banned
Posts: 4024
Registered: 4-12-2013
Location: Baja New Mexico
Member Is Offline
Mood: Always cranky unless medicated
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Max out that SSI and spend your extra top-pay on Medicare, medicines, physical therapy and co-pays, with all your vacation time scheduled between
Dr.'s appointments.
Life is short, eat dessert first. 
I don't have a BUCKET LIST, but I do have a F***- IT LIST a mile long!
86 - 45*
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Bob53
Senior Nomad
Posts: 661
Registered: 2-24-2014
Location: Fallbrook, CA & Bahia de los Angeles
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I'll be 62 this December and have already decided to take my SS benefits at 62. I did the math and if I wait until I'm 66, it would take 11.8 years to
break even. I will keep running my business for a year or two if it is profitable but regulate my actual salary through the corporation so that I
don't exceed the allowed income.
The bitterness of poor quality remains long after the sweetness of low price is forgotten.
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Howard
Super Nomad
Posts: 2353
Registered: 11-13-2007
Location: Loreto/Manhattan Beach/Kona
Member Is Offline
Mood: I'd rather regret the things I've done than regret the things I haven't done.
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There is an easy answer!
When will you die?
When you figure out that one the choice is easy! 
It all boils down to how long you will be around to collect the benefits and nobody know that answer. I started the first day when I turned 66.
We don't stop playing because we grow old;
we grow old because we stop playing
George Bernard Shaw
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BajaBean
Junior Nomad
Posts: 66
Registered: 3-17-2015
Location: Hemet CA
Member Is Offline
Mood: Garboso
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Joe
You can marry a nice latina but when you do you will also marry her extended family and they will bleed their "rich gringo" until he is a pale ghost
of his former self.
The opposite of love is not hate. It is indifference.
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Bob53
Senior Nomad
Posts: 661
Registered: 2-24-2014
Location: Fallbrook, CA & Bahia de los Angeles
Member Is Offline
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My 2 ex-wives and their families have already done that to me.
The bitterness of poor quality remains long after the sweetness of low price is forgotten.
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Sweetwater
Senior Nomad
Posts: 915
Registered: 11-26-2010
Member Is Offline
Mood: chilly today hot tomale
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The real answer doesn't come from a calculator.
How long can you remain active and enjoy yourself? Do you have the resources to do the activities and travel? Watching those who have gone down the
path leads me to believe that your abilities and desires will decrease over time. My dad turns 88 this year and is satisfied with a couple trips to a
casino or resort now. When he initially retired, trips to Europe and Australia were on his docket. If you want to travel and adventure, you'll need to
do it while you're younger, if your focus is staying healthy and utilizing the health care system, you'll need plenty of money and good insurance to
do that. Having a partner who has separate resources is a benefit from my view.
Good luck with your choices, there are no guarantees that I've been able to find......
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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umpqua
Junior Nomad
Posts: 29
Registered: 12-10-2006
Member Is Offline
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Thanks for all of the comments.
I don't smoke....well maybe the occasional cigar. Went to the DR. last week for a physical....she said I'm 20lbs overweight. I'm 6'2" so carry it
pretty well. I do drink....sometimes a LOT. She said that would carry some health risks later. I gave her the more old drunks line. As far as
lifestyle is concerned I think that I can live pretty simple. I drive old cars and don't see a lot of value in keeping up with the Jones's (haven't
met them yet). I will NEVER have my house paid off. It's in like year 3 of a 30 year mortgage. Again, I would rent it for the first 3-4 years to see
if the living elsewhere would work out for me. I love my job and the people that I work with. My boss says he may go another 7 years so that would
work out perfect. My dad died when he was 72 but my mom is still alive (living with me) at 91.
I appreciate the thoughts. It's been on my mind and apparently some of you have given it serious thought as well. Who the hell am I.....the old guy I
never thought I'd be.
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Alm
Ultra Nomad
Posts: 2725
Registered: 5-10-2011
Member Is Offline
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Umpqua - what Joe said. Wait for another 6 years, until you're 62. Then re-visit this subject. You'll have a better picture of where you are, then.
Many things may change in 6 years. Your health may change. Minor things giving your plenty nuisance - virus, glaucoma, hernia etc etc. You may quit
your job or they will go out of business. You may have to move out of your home because mortgage interest will skyrocket. The climate may (and will)
change, you won't enjoy living where you are in the US (if you do now), and it will be different in Mexico too - rain where it was all dry before,
cold where it was hot, snow in Guadalajara (the fact already), shallow swamp where there was Chapala.
Wait 6 years.
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