Anyone out there drawing a monthly stipend from their Teamster/UPS 401K?

[UpstateNYUPSer(Ret)]

that sounds like a good idea. i applied yesterday for ss at age 62. wonder if i can cancel my app.

Anyone who acts based solely upon the advice given on an anonymous Internet chat forum has a fool for a client.

 

[BrownFlush]

55

52 for me

 

[BrownFlush]

If you don't need it at 62 why would you take it when 60% more money could be huge at 90.

Might not be much of a plan, but mine was always take the money the day they will give it to you. It worked for the pension, and I will do the same with SS.
Life, death, time, money, the numbers will fall where they are going to.
My "life adviser'' hasn't missed yet.

 

[UpstateNYUPSer(Ret)]

Might not be much of a plan, but mine was always take the money the day they will give it to you. It worked for the pension, and I will do the same with SS.
Life, death, time, money, the numbers will fall where they are going to.
My "life adviser'' hasn't missed yet.

The chief difference is your pension does not have the ability to grow at an 8% rate for every year that you wait.

 

[brownmonster]

The chief difference is your pension does not have the ability to grow at an 8% rate for every year that you wait.

My pension would grow if I worked for 5 more years also. I would rather enjoy smaller amounts sooner.

 

[UpstateNYUPSer(Ret)]

My pension would grow if I worked for 5 more years also. I would rather enjoy smaller amounts sooner.

Ours increases by $100/month for every year we work beyond 30.

Thanks, but no thanks.

 

[BrownFlush]

The chief difference is your pension does not have the ability to grow at an 8% rate for every year that you wait.

As that ability to grow the pile increases, a chief difference in our thinking is, the ability of your body to decrease every year.
Please, wait until your 70.

 

[IVE GOTTA PACKAGE 4U]

As that ability to grow the pile increases, a chief difference in our thinking is, the ability of your body to decrease every year.
Please, wait until your 70.

You also have to look at what tax bracket you are in. Sometimes it's worth taking a little bit out as an "in kind distribution". The money is stost in the market but will be taxed at the capital gains rate. Questions like these needs to be answered by a professional. Too mqnm people make huge mistakes by not knowing the facts.

 

[UpstateNYUPSer(Ret)]

As that ability to grow the pile increases, a chief difference in our thinking is, the ability of your body to decrease every year.
Please, wait until your 70.

Our plan is to wait until 67 and assess the situation before deciding to draw or to wait until 70.

 

[Brownslave688]

The chief difference is your pension does not have the ability to grow at an 8% rate for every year that you wait.

And the fact that you have to go to work every day to increase the pension and just stay alive for SS

 

[burrheadd]

Our plan is to wait until 67 and assess the situation before deciding to draw or to wait until 70.

“Our”

You mean you and the cat?

Lmao

 

[UpstateNYUPSer(Ret)]

“Our”

You mean you and the cat?

Lmao

Me and my Edward Jones financial adviser, you a hole.

 

[Shiftless]

Need to add in the "What If" scenario.

The way our Congress and Senate work these days, it will probably be pointless anyway if you wait or take it early. Either way we are gonna get the screw! Then we are all in the same boat.

Your Attention Please:
Please don't take your SS till your 70! Best plan ever! Pass the word! Work till you PUKE!

 

[olroadbeech]

My pension would grow if I worked for 5 more years also. I would rather enjoy smaller amounts sooner.

We decided on 62 . Take the money and invest in very low cost Vanguard mutuals. I'd rather have control over it than Uncle Sam. Maybe can do better than 8% or maybe not but if we need the money in an emergency we have easy access to it.

at close to $30,000 a year for me and spouse that would be $240,000 invested ( not counting losses or gains in a vanguard mutual like the s&p 500 ) in 8 years.
At market averages over the last 40 years at 8% ( no guarantee of course ) that money would grow to around $400,000 in those 8 years. not sure how much less with taxes.

I 'd rather have close to 400k after 8 years in my possession than wait until I was 70 starting at $0.

that is why we are starting at 62.

 

[UpstateNYUPSer(Ret)]

Did you forget the part about a portion of your SS being taxed?

 

[beentheredonethat]

We decided on 62 . Take the money and invest in very low cost Vanguard mutuals. .........
I 'd rather have close to 400k after 8 years in my possession than wait until I was 70 starting at $0.

that is why we are starting at 62.

You have valid reasons to start early. However, redo your math calculations. The biggest unknown is how long you will live and your quality of life. That's part of the reason why there is no right or wrong answer. My goal is to have enough money in my 401K so I can live comfortably in retirement with only my own 401K. If the pension checks do come to me so much the better. If SS checks arrive monthly, so much the better. However, my faith in wall street protecting the pension system and congress protecting social security is not too high.

As to your estimated investment of 400K after 8 years, I'm showing closer to 336K after 8 years not 400K. Also, that is assuming that 100% of the SS check you said you would get goes to investments and nothing being taken out. On the other hand, I also assumed no increase in the SS check also over those years. My method was to do 96 total calculations showing what the value would be of the first monthly payment showing 8% annualized returns compounding monthly. I repeated 95 more times, with 1/12 less of a year of time of interest accumulated. Then summarized all those 96 rows (months) to get to the final. There are other calculators out there that will give you similar numbers. Also, in a "short" amount of time of 8 years in the stock market, it could be very good (much greater than 8%, or very bad with negative returns). I don't want you to go and planning on 400K and finding out only 336K was in there with the market showing the 8% gains you were anticipating.

 

[olroadbeech]

You have valid reasons to start early. However, redo your math calculations. The biggest unknown is how long you will live and your quality of life. That's part of the reason why there is no right or wrong answer. My goal is to have enough money in my 401K so I can live comfortably in retirement with only my own 401K. If the pension checks do come to me so much the better. If SS checks arrive monthly, so much the better. However, my faith in wall street protecting the pension system and congress protecting social security is not too high.

As to your estimated investment of 400K after 8 years, I'm showing closer to 336K after 8 years not 400K. Also, that is assuming that 100% of the SS check you said you would get goes to investments and nothing being taken out. On the other hand, I also assumed no increase in the SS check also over those years. My method was to do 96 total calculations showing what the value would be of the first monthly payment showing 8% annualized returns compounding monthly. I repeated 95 more times, with 1/12 less of a year of time of interest accumulated. Then summarized all those 96 rows (months) to get to the final. There are other calculators out there that will give you similar numbers. Also, in a "short" amount of time of 8 years in the stock market, it could be very good (much greater than 8%, or very bad with negative returns). I don't want you to go and planning on 400K and finding out only 336K was in there with the market showing the 8% gains you were anticipating.

thanks.

i pointed out that these were historical averages and that we could lose money in that period. going by the rule of 72 the money invested would almost double in 8 years assuming a 8% return.

your figure of 336 is probably more accurate as i was just figuring off the top of my head. was not using calculators and did mention that the 400k number would be lower factoring in taxes.

we have been retired nearly 3 years and have yet to touch the 401k which has grown considerably in these 3 years. getting along fine with pension so far, better than expected. we made a detailed budget before retiring and even added 20% for contingencies. the only thing we got wrong was medical expenses. we are paying slightly more for prescriptions and doctors than we thought.

also starting SS in July. another 2500 a month. we did not depend on SS or the 401k to live on. the pension and cash savings was what we planned on. even if the pension went bust, with the house being paid off , the cash would get us thru.

in the event of an end of world happening, we still have our guns. and a couple zombiemobiles.

 

[BrownFlush]

You have valid reasons to start early. However, redo your math calculations. The biggest unknown is how long you will live and your quality of life. That's part of the reason why there is no right or wrong answer. My goal is to have enough money in my 401K so I can live comfortably in retirement with only my own 401K. If the pension checks do come to me so much the better. If SS checks arrive monthly, so much the better. However, my faith in wall street protecting the pension system and congress protecting social security is not too high.

As to your estimated investment of 400K after 8 years, I'm showing closer to 336K after 8 years not 400K. Also, that is assuming that 100% of the SS check you said you would get goes to investments and nothing being taken out. On the other hand, I also assumed no increase in the SS check also over those years. My method was to do 96 total calculations showing what the value would be of the first monthly payment showing 8% annualized returns compounding monthly. I repeated 95 more times, with 1/12 less of a year of time of interest accumulated. Then summarized all those 96 rows (months) to get to the final. There are other calculators out there that will give you similar numbers. Also, in a "short" amount of time of 8 years in the stock market, it could be very good (much greater than 8%, or very bad with negative returns). I don't want you to go and planning on 400K and finding out only 336K was in there with the market showing the 8% gains you were anticipating.

Dag on it... I'm gonna be 62 in December and I didn't want to start thinkin'. Now look what you've gone and done.

 

[IESucks]

You have valid reasons to start early. However, redo your math calculations. The biggest unknown is how long you will live and your quality of life. That's part of the reason why there is no right or wrong answer. My goal is to have enough money in my 401K so I can live comfortably in retirement with only my own 401K. If the pension checks do come to me so much the better. If SS checks arrive monthly, so much the better. However, my faith in wall street protecting the pension system and congress protecting social security is not too high.

As to your estimated investment of 400K after 8 years, I'm showing closer to 336K after 8 years not 400K. Also, that is assuming that 100% of the SS check you said you would get goes to investments and nothing being taken out. On the other hand, I also assumed no increase in the SS check also over those years. My method was to do 96 total calculations showing what the value would be of the first monthly payment showing 8% annualized returns compounding monthly. I repeated 95 more times, with 1/12 less of a year of time of interest accumulated. Then summarized all those 96 rows (months) to get to the final. There are other calculators out there that will give you similar numbers. Also, in a "short" amount of time of 8 years in the stock market, it could be very good (much greater than 8%, or very bad with negative returns). I don't want you to go and planning on 400K and finding out only 336K was in there with the market showing the 8% gains you were anticipating.

Tldr

 

[Brownslave688]

You have valid reasons to start early. However, redo your math calculations. The biggest unknown is how long you will live and your quality of life. That's part of the reason why there is no right or wrong answer. My goal is to have enough money in my 401K so I can live comfortably in retirement with only my own 401K. If the pension checks do come to me so much the better. If SS checks arrive monthly, so much the better. However, my faith in wall street protecting the pension system and congress protecting social security is not too high.

As to your estimated investment of 400K after 8 years, I'm showing closer to 336K after 8 years not 400K. Also, that is assuming that 100% of the SS check you said you would get goes to investments and nothing being taken out. On the other hand, I also assumed no increase in the SS check also over those years. My method was to do 96 total calculations showing what the value would be of the first monthly payment showing 8% annualized returns compounding monthly. I repeated 95 more times, with 1/12 less of a year of time of interest accumulated. Then summarized all those 96 rows (months) to get to the final. There are other calculators out there that will give you similar numbers. Also, in a "short" amount of time of 8 years in the stock market, it could be very good (much greater than 8%, or very bad with negative returns). I don't want you to go and planning on 400K and finding out only 336K was in there with the market showing the 8% gains you were anticipating.

Not to mention at that age you shouldn't be aggressive enough to realize those 8% gains.

And 8% seems mighty optimistic after the run up we've had.