From: Douglas Johnson 
Newsgroups: misc.invest.financial-plan
Subject: Re: Social Security Redux
Date: Mon, 24 Sep 2007 14:02:22 -0500
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"Elizabeth Richardson"  wrote:

>Ok, having been duly convinced that delaying the taking of SS benefits is a
>wise financial course for me, how do I go about deciding when is the most
>optimal time to start taking benefits? Is this a risk/reward question or is
>there a formula I ought to be playing with? 

This is a question that I am trying to figure out myself.  I do know any formula
will start with your date of death.   When you know that, it will be too late. 

I think that, if you are healthy, with long-lived ancestors, you should delay as
long as possible, given that Social Security is an inflation adjusted annuity,
it provides good insurance against outliving your money.

Conversely, if you are from short lived stock and ill, you probably ought to
start as early as possible.  None of us  are promised another sunrise.

The question gets more complicated if you are married.  The surviving spouse
gets the higher of the two social security payments.  Say your husband is
already retired and drawing Social Security at a rate that is higher than your's
would be if you waited to start.  Then, his SS payment provides longevity
insurance, because you will get his payment if he dies first.  In that case, I
would start drawing as early as possible.

The above is my current thinking.  I'd love to hear corrections or additions.

>(Yes, I know I ended that
>sentence with a preposition, but I'm too lazy to reword it.) And if there is
>a formula, what is it?

As Churchill said, "That is a convention with which I will not put up."

-- Doug