On a scale of 1 to 10, how likely are you to be a millionaire?

[QuarterMillionMan]

Are you subject to the Windfall Elimination Provision (WEP)? I am, which is a real drag. I have a CalPERS pension, but only started with a government job at the age of 50.5. I'm vested but my pension is tiny at the moment. It's growing, though.

Petunia you nailed it the WEP will cut my SSA payout about in half which is a real drag as you say. I would need about 10 more years in earning SS income to eliminate WEP by taking a part time job in the private sector but it ain’t happening.

[QuarterMillionMan]

The windfall elimination provision (WEP) is a modified benefit formula that reduces the Social Security benefits of certain retired or disabled workers who are also entitled to pension benefits based on earnings from jobs that were not covered by Social Security and thus not subject to the Social Security payroll tax.

[QuarterMillionMan]

If I retired at 62 my SSA payment would be $750 a month but w/WEP showing 2022 as a retirement date at the bottom of the chart for under 20 years of SS earnings Uncle Sam would take $520 out of my $750 a month leaving me with only $200 a month. Not fair at all.

[QuarterMillionMan]

I have 22 years of taxed SS earnings from 1981 - 2003 (which as you can see was peanuts). Mid-way through 2003 is when I became employed with big Gubmint which is not taxed for SS earnings (don't ask me why but to me it is better that way not paying into SS). According to that WEP chart if I get 8 more years of taxed SS earning (which I am not going to take a private part time job in order to gain those 8 more years), then the WEP would be zero (bottom far right side of WEP chart).

[Petunia 100]

If I retired at 62 my SSA payment would be $750 a month but w/WEP showing 2022 as a retirement date at the bottom of the chart for under 20 years of SS earnings Uncle Sam would take $520 out of my $750 a month leaving me with only $200 a month. Not fair at all.

It's not fair. I'm sure you know that every so often there is a bill floating around Congress to eliminate the WEP. It never goes anywhere, and I don't think that it ever will.

[Off-Grid Lover]

On a scale of 1 to 10 (10 being the most likely), how likely is it that you'll be a millionaire one day?

HI Everyone, this is my first post on a forum so hopefully it will work. Nice guy Jon fixed it for me!!

Anyhow the likelihood of us becoming Millionaires is about 0 percent. Okay if you add a fluke, maybe less than 1%

Nice to meet you all, I am 54 yrs old, married from California

[Petunia 100]

HI Everyone, this is my first post on a forum so hopefully it will work. Nice guy Jon fixed it for me!!

Anyhow the likelihood of us becoming Millionaires is about 0 percent. Okay if you add a fluke, maybe less than 1%

Nice to meet you all, I am 54 yrs old, married from California

Hi. I'm 55 yrs old, life-long California resident. Living semi off-grid.

[Off-Grid Lover]

Hi. I'm 55 yrs old, life-long California resident. Living semi off-grid.

That's wonderful! That's our goal to move to the house we are building but it's hauled.It's 75% done on 20 acres. We ran out of $ to finish it. Are you in Northern Calif?

[Petunia 100]

That's wonderful! That's our goal to move to the house we are building but it's hauled.It's 75% done on 20 acres. We ran out of $ to finish it. Are you in Northern Calif?

Yes, we are. In the Sierra foothills, at about 3,600 ft. We moved up here 5 years ago from the central valley, and what a change it was. We live very rurally, in a 5th wheel. We have electric (PG&E), also a gas-powered generator and a back-up battery. Water is from the well, always cold, clean, and delicious.

Yesterday, I posted about a bear encounter on my blog, if you're interested.

[james.hendrickson]

Yes, we are. In the Sierra foothills, at about 3,600 ft. We moved up here 5 years ago from the central valley, and what a change it was. We live very rurally, in a 5th wheel. We have electric (PG&E), also a gas-powered generator and a back-up battery. Water is from the well, always cold, clean, and delicious.

Yesterday, I posted about a bear encounter on my blog, if you're interested.

Can you post a link to the story?

[Petunia 100]

Can you post a link to the story?

Sure. https://petunia100.savingadvice.com/...-story_224320/

[rennigade]

I've been watching a lot of videos on SS lately, as to when you should take it. I always thought, well it depends on how long you live, which you can't predict. The more I see financial people talk about it the more taking at 62 makes sense.

There are a lot of break even calculators out there. Most people break even in their upper 70s. Meaning if you take at 62 or 70, you're break even is usually around 78. After 78 it would be better to have taken SS at 70 instead of 62. Here's the kicker. How much better do you feel at 62 vs 78? The fact is when you're pushing 80, your body just has a tougher time doing anything. If you can grab the money sooner and spend it on things or experiences you enjoy, that's a better route. Now if you do nothing and sit around all the time, wait to take it.

You can also invest some of the money you get starting at age 62. You don't have to spend it all. Even if you don't need the money, it's yours to take! Do you have kids, grandkids? Would you rather take at 62 and give it to them or die at 63 and no one gets it? Unless you have a spouse, who should also be taking SS if they can.

You are not guaranteed tomorrow. Just remember that.

[disneysteve]

I've been watching a lot of videos on SS lately, as to when you should take it. I always thought, well it depends on how long you live, which you can't predict. The more I see financial people talk about it the more taking at 62 makes sense.

There are a lot of break even calculators out there. Most people break even in their upper 70s. Meaning if you take at 62 or 70, you're break even is usually around 78. After 78 it would be better to have taken SS at 70 instead of 62. Here's the kicker. How much better do you feel at 62 vs 78? The fact is when you're pushing 80, your body just has a tougher time doing anything. If you can grab the money sooner and spend it on things or experiences you enjoy, that's a better route. Now if you do nothing and sit around all the time, wait to take it.

You can also invest some of the money you get starting at age 62. You don't have to spend it all. Even if you don't need the money, it's yours to take! Do you have kids, grandkids? Would you rather take at 62 and give it to them or die at 63 and no one gets it? Unless you have a spouse, who should also be taking SS if they can.

You are not guaranteed tomorrow. Just remember that.

I always wonder about this. We're still 3 years from having to make the first decision. I know that one factor is spousal benefits. If I claim at 62 I think that impacts what she gets if I die before her whenever that is. My benefit is much higher than hers so I want to make sure we maximize that since statistically I'll go first. Maybe she claims hers at 62 and I delay mine. I'm really not sure and haven't looked into it yet as I'm still 3+ years from needing to decide. Definitely a question for our CFP and CPA. I believe when we met with the CFP, he did the projections based on collecting at 70 but we didn't delve into the math behind that.

[QuarterMillionMan]

If I need it at 62, I'll take it but I would try to wait as long as possible but like rennigade said tomorrow is not guaranteed so it is a dilemma. Good problem to have considering the alternative worst-case scenario not being able to cross that bridge at all. I know people who have died at about that age. But I won't be like my co-worker a male who is 80 who celebrated his 50th year of civil service and earned a 100% pension, but is still working, shrug lol.

[Off-Grid Lover]

Sure. https://petunia100.savingadvice.com/...-story_224320/

Thank you. Sounds exciting. We live in Sierra City right now but within a few years, will hopefully have the funds to finish the house in the off-grid down we will move to. He may take Social Security early.
Woke up to a ton of snow. It's difficult to work here. 5 years ago I had a job 2.5 hrs away working 2.5 days straight- Wed afternoon to Friday morning. Due to COVID, they transferred all the clients down to Sacramento which is just too far to drive. So we either increase income or lower expenses. The entire town is Off-Grid and is a few hours away from us right now in a State Recreation area.

You sound like you have a great set up. It's wonderful to have nice clean water. We live in the one county which has that all year long in Northern California due to snowfall. The water off-grid isn't the best, we believe it is either from a mine or underground lake. Bathing in it will be okay, but we may haul in water otherwise. The Old timers live to a ripe age up there so the water is probably just fine.