Friday, March 22, 2024

Friday Finances

The beginning of the week was going normal/slow, but I woke up this morning and sat down to my computer and was surprised to see it said Friday. I thought it was Thursday!  At work we have this Friday email summarizing our big orders for the week. It was a long one (it's a lot of graphics/pictures of the projects) with info below each. I'm scrolling through reading, and realize there is a hidden message, LOL. The first 4 to respond get a $25 gift certificate. I replied pretty quickly, so maybe I'll be one of the winners. Usually I just scroll through these Friday emails just glancing at the job name and total $. They were pretty sneaky with the hidden message ;)

Thanks to comments yesterday I learned some things and have some new things to research and/or look into a little bit more in depth :) 

Dh also turns 60 this year. I have done lots of research the past couple of years and thinking on when would be best to have him start taking social security. I still have a couple more years to keep thinking and researching, but as of now my plan is to have him start taking his at 62. Since he doesn't work and has no income, this would be a nice little bit of extra income for us each month (especially since I won't have any side job income by then). 

I did the "break even" analysis on him taking it at different ages and for it to make a difference whether he takes it at 62 or his full retirement age of 67, the break even age is 82. I'm also taking into consideration his overall health - which, facing reality, is not the best for longevity. If he starts taking it at 62, when I retire at 67 and start taking it, he can then switch to spousal benefits, which from my understanding is half of my monthly payment, less an adjustment for him taking his early, but still a bit more than he would just taking his own SS benefit.

I know there are lots of different opinions on when it's best to take SS, but in doing the math, I see no reason for dh to wait and take it later. If he does live past 82, then the amount between then and his death won't be a huge difference in overall social security income earned all the years. 

My plan, when he can start taking this in mid 2026, is to put that monthly income towards our mortgage, as well, while I'm paying down the mortgage by the time I retire. Again, the main plan with all this is figuring out how I can be retired by age 67, at the latest.

7 comments:

  1. I think I read somewhere that the spousal benefit would end at some point. Not sure. People who have been through all the confusing rules are helpful. I had a friend who divorced a veterinarian. Things were tight for her. Well, I informed her she could collect half his ss if she had been married for ten years to him and had not remarried. That extra income changed her life. And, she had been divorced for ten years or more, so I was surprised she did not know this.
    I hope you are one of the first four. I suppose this tactic will have employees skimming more carefully from now on.

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    1. and this is a great example of why I need to write these posts! I learn things I didn't know. I had not come across that spousal benefits are going away (starting this year, I guess). The gov't sure does nibble away at our money, don't they? A tax here, another new tax there, reduced benefits. This is good info to take into consideration in my future budgeting.

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    2. It is not true that spousal benefits are going away. Means testing of spousal benefits has been discussed as one of several possible ways of closing the Social Security funding shortfall, but nothing has happened yet. The budget proposal just released by the House calls for raising the retirement age.

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    3. Julie - I think you are right. I just re-read the articles on the spousal rule that is gone and it sounds like it has something to do with some loophole that is different from dh being able to switch over to claiming half my benefit when I take SS. It's all worded very confusingly

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  2. I am learning so much from these posts. I have really dropped the ball on all this SS and Medicare crap. I turn 65 soon and just recently learned I have to sign up for Medicare or pay a penalty for 2 yrs (I think). My Dh is a couple years younger and still working so I just thought I could keep that insurance. I really appreciate you educating me lol

    Diane

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    1. I'm pretty sure you can stay on your spouses insurance plan and delay signing up for medicare (at least that's what I'm reading). In my case, with my dh on my insurance plan, when he turns 65 I'm signing him up for medicare because it will me cheaper than the premiums I'm paying for him through my insurance

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    2. From everything I know, providing your husband's compapny has 20+ employees, One Family is correct. When you do start Medicare, you will need to file form L564 which is proof of group health insurance. Check out Medicare School on YouTube. I've learned a ton of info from that channel.

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