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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: George Statham who wrote (5828)	5/31/2018 10:09:19 AM
From: robert b furman	Respond to of 26862

Good discussion going on here - I'm glad none of it is news to me. There are many out there who could benefit greatly by reading these posts. It did not hit me till I took a night course on boomer's retirement. Hope it is not considered clutter to this great thread. It should be a SEPARATE THREAD BUT IT LOOKS LIKE THIS THREAD DOES NOT NEED IT. Bob

To: George Statham who wrote (5828)	5/31/2018 11:17:52 AM
From: w0z	1 Recommendation Recommended By Kirk © Respond to of 26862

It's not compounded. That's why it's 32% and not (1.08 ^ 4) -1 or 36.05% Correct, the age 62/70 discount/premium is not discounted, but the annual SS amount it applies to IS inflation adjusted and compounded annually every year. So it is somewhat compounded but not the applicable percentage. And thereafter total amount is then COLA adjusted every year until death of both spouses (in our cases). Age 66 FRA = $1000. Age 70 FRA = $1000 * 1.32 + the $1000 COLA compound adjusted for 4 years (ages 67-70). Assume COLAs (2%, 3%, 3%, 4%) yields 10001.021.031.031.04*1.32 = $1485 (instead of $1320)