Does Social Security compare to investments?

Kirk W · March 30, 2022

3 hours ago, mptjelgin said:

With all due respect, my answer would be "About 20 years ago". If you are comfortable that you have your future expenses covered by pensions/SSI/a portion of your investments, etc. and that you indeed have "extra" money, what have you been you waiting for?

3 hours ago, Randyretired said:

I am often to conservative for my own good.

As I stated earlier, we have begun to spend our annual withdrawals but haven't really started the "spend down" that many people speak of. Mark, I hope that you are right and you have enough to spend down" without concern about your funds running out at some point. I do find it interesting that you suggest that we are not spending enough without any knowledge of how much we have available. Many things play a part in these decisions and in my opinion the amount available, the manner in which you desire to live, and your expected lifespan all play roles in making these decisions. Once you pass the age of 70 the IRS requires that a portion of any tax sheltered funds be withdrawn and are subject to income taxes. They do not require one to spend that money and some people save it, others invest it while we spend it. The following comes from IRS.gov.

Quote

Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that the IRS publishes in Tables in Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

What they do not consider is your family history for lifespans but most medical people do. Our primary doctor suggests that most of us in Pam's and my age group can expect to live at least 5 years longer than the average age of out 2 parents, assuming that they didn't die of some illness or accident. But there are also a number of other factors that one should probably consider, such as long term care insurance if any, and what sort of living arrangements you wish to have as you age. Will you stay in the house that you own or move to some sort of senior housing? Will you need assistance to live in the way you wish to? And what of things like Alzheimer's, dementia, or some other disabling condition? If your funds should run out, do you have children who could help you without stressing them financially? Each and every one of us must figure out as best we can our own situation.

4 hours ago, Randyretired said:

Sure wish I could figure a way to cross home plate exclaiming WHAT A RIDE as my last check bounced.

You have that right!

mptjelgin · March 30, 2022

13 minutes ago, Kirk W said:

I do find it interesting that you suggest that we are not spending enough without any knowledge of how much we have available.

I don't think that I made any such suggestion that "you are not spending enough". I have zero idea of your financial situation or your interests for that matter. I have no dog in your hunt.

But you specifically stated in this thread that you were "...struggling with the decision of when is it time to harvest the returns on past investments and spend them..."

You also state that you are almost 80 years old. So my question remains: What are you waiting for? If there are things that you want to do, and can afford to do, when will you do them? Sooner? Later? Never?

I offered an opinion in response to your post. Consider it, ignore it. It's your life.

RV_ · March 30, 2022

2 hours ago, mptjelgin said:

I don't think that I made any such suggestion that "you are not spending enough". I have zero idea of your financial situation or your interests for that matter. I have no dog in your hunt.

But you specifically stated in this thread that you were "...struggling with the decision of when is it time to harvest the returns on past investments and spend them..."

You also state that you are almost 80 years old. So my question remains: What are you waiting for? If there are things that you want to do, and can afford to do, when will you do them? Sooner? Later? Never?

I offered an opinion in response to your post. Consider it, ignore it. It's your life.

👍👍👍🖖

Barbaraok · March 30, 2022

2 hours ago, mptjelgin said:

"You also state that you are almost 80 years old. So my question remains: What are you waiting for? If there are things that you want to do, and can afford to do, when will you do them? Sooner? Later? Never?

I offered an opinion in response to your post. Consider it, ignore it. It's your life.

I turn 77 this May. My mom died at 97, her youngest sister at 90, and my Aunt Barbara (whom I am named for) is now 98 on the way to at least 100. My great grandmother (mom's side) lived to be 96. Longevity runs in both sides of the families, so I have to plan accordingly. Dave on the other hand has already outlived his father, grandfather, but largely due to the increases in medical care in the past few years. We have enough to do everything we want to right now and hopefully at least 20+ yrs worth a portion of which I will live with my daughter and son-in-law and anything left goes to her.

rickeieio · March 30, 2022

Based on my family history, I used to believe I would live to around my mid 90's, or better. But then suddenly my Dad was diagnosed with liver cancer, and died 7 weeks later, at 74. So much for doing the math. That led me to develop an exit strategy from the farm, and start down this path of travelling more.

So, push the pencil all you want to try and determine when you'll run out of nickels, but there's no guarantees. I'm 68 and have the fun-meter pegged. It's mostly cheap fun, but still fun.

TXiceman · March 30, 2022

WE currently have more than enough for a comfortable life and intend to enjoy the remaining years. We told our daughter to not plan on any inheritance as we plan to spend as much of our money as possible.

Slide into home plate with a beer in hand and a big smile on your face.

Ken

Kirk W · March 30, 2022

The issue is how much should be spent and how much held back. My point is to discuss among those who do not have all of the answers, ways to approach what feels right for each of us.

Barb, we have similar biologic backgrounds to you and Dave, except I have the long lived ancestors and Pam has the shorter lived ones. Also we are thinking in the 20 more year range as well, but like others have stated, who really knows? It seems that Rick & Ken both think much as you and I but also agree that we just don't have hard answers. We are working on a rolling financial goal now, trying to balance what we have & potential growth of it against our anticipated future needs. The other part of the question is what you want done with any remaining funds. That is easy if you have only 1 heir but I have been amazed by how many families I have seen with hard feelings over the disbursement of their parents estates. We are seriously considering changing our wills to give anything left to our favorite charities since we have 3 sons, and all 3 seem to agree with that.

It really doesn't concern me that some may take pleasure from boasting of how much they have and others choose to just spend away, as the reason was not to debate who is right or wrong and there is always Medicaid for those who run out of resources.

Edited March 30, 2022 by Kirk W
correct typo

TXiceman · March 31, 2022

Money can cause family problems. You need to have very definite plans on what is left. My less than financially responsible brother that would spend two nickels if he had one, managed to talk my mom into changing her accounts over to him and her will to leave everything to him. I am sure he has blown through what she had left him. He has not spoken to me since she died.

Ken