I'm 65 with a basic teachers pension that so far I've done well in the five years since I've retired. I have about $150,000 in liquid assets, and $50,000 worth of gold. I'm a widower who unfortunately doesn't have a family so it's only me. I decided to wait until 67 to claim social security, but now I'm thinking my best move would be to burn through 100 Grand or so of my liquid assets and wait until 70. Is that a sound strategy? With the price of medical Care increasing as I age I don't want to surrender my liquid assets, but my days of tightening my belt for future benefit are running out and I would like to treat myself with things I've always dreamed of but I've never had the time to enjoy.
Have liquid assets, should I burn through them and wait till 70 for social security?
byu/Responsible-Doctor26 inpersonalfinance
Posted by Responsible-Doctor26
14 Comments
I forgot to add important information. I have absolutely no debts and my housing situation is great and I’m so lucky to only spend about $700 a month.
I’ll let others get to the specifics, but I wanted to say thank you for the years of service teaching and I wish you many years of happiness in retirement. Treat yourself to what you can.
Yea dude. Enjoy your life before it’s too late
You’re giving up 3 years of payments to get the bigger payment at 70. How long is the payback? I’ll bet about 10 years.
I’d take it at 67.
Usually the math favors taking it as early as possible, just assuming 2500 a month, time 12 months time 5 years =$150,000 you lost by waiting
Someone ran the numbers on social security dates yesterday.
If you took it **now**, you’d need to live to nearly 90 before it would make you more money than waiting.
Take it now, and spend the money enjoying life, before you’re too old to be able to do that.
If you burn thru your liquid, and are then only relying on the monthly income coming in, what will you do if you have a large issue such as a roof repair, major car repair, or major medical bill?
If you’re expensive are only $700 a month, how much is not covered by your pension?
And why don’t you consult a cfp? They can look at your total picture, and then help you run some scenarios to help you maximize your assets and pick the ideal path and give you an idea of the next 20 to 30 years
What % of your salary is the pension ? Why do you need to burn so much savings with a pension and only $700 in housing cost ?
Maybe you can do some tutoring part-time to get some extra money as you wait? You can do it online or post some flyers near colleges
Sell the gold. It doesn’t produce income and it is volatile in price. Put it in fixed income security berating 4.5% a year. Start taking SS now, unless you are in remarkably good health and have great longevity in your family.
Dump the gold, keep the liquid, wait till 67 then collect if you need the money – cash in/out at retirement is what’s important along with your monthly expenses.
If you are widowed, you should have been eligible for Social Security Survivors benefits based on your spouse’s earnings beginning at age 60. If eligible, you can switch over to your own benefits at 70. Buying thru what liquid assets you have is not a good idea.
If you can, go get a part time job to cover expenses without liquidating your assets