Quote:
Originally posted by Bad_Rich_Chic
Interesting annecdote on SS from the DebtSlave files:
My mother is turning 65 shortly. She went to talk to the accountant to determine if she should start drawing now or at 67 or at 70.
They crunched numbers and determined:
(i) that, if Mum waited until she was 70 to draw down (thus getting larger payments), she would need to live to 86 before she would see a net gain (ignoring present value discounts).
(ii) If she put her payments from age 65-70 into a money market fund, by age 70 the account would generate more revenue than the additional payments she would receive from SS if she waited until 70.
Obviously, she's expecting her first check in a few months.
BR(My mother, who is virulently anti-Bush, was deeply unamused when I responded to (ii) with "ah, so you're going the private account route")C
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(i) What do you mean by "net gain"? Gain over what??
(ii) What's the point? I think that would be true of any annuity. It's the nature of a fixed annuity.
