Senile Texas Aggie - comic relief for the rest of you

[CntryBoy777]

STA....something else ya might try is to find an equipment auction sales in your "neck of the woods" and ya may can work a .ore palatable deal with them. They will offer ya a trade for yours....I traded an unfixable kubota to one for the riding mower that I use now....it was used and has ran good since I got it 4yrs ago....may be worth a try....

 

[Senile_Texas_Aggie]

All,

I would like to get your opinions on two different topics.

The first topic is tractor related. What is the best way to find out what tractor models are reliable or not reliable? I have yet to find a website dedicated to rating the reliability of tractors by make and model. I have been checking YouTube and tractorbynet to see the different owner experiences, but I am also considering visiting dealer service departments and talking to the service managers on what models to buy and what to avoid. I once did that with a Ford dealership when i was considering buying a Ford diesel truck many years ago, and the service manager was refreshingly honest. He called the diesel engines sold back then as money pits. (Ford has since then fixed the problems with their diesel engines.) I am hoping that the service managers will be honest with me as well, but then again they may have a conflict of interest -- they don't want to talk trash about the tractors the dealership sells.

The second topic is when to take social security. Back when I retired at 65, I read an article which advised delaying taking social security for the primary beneficiary until 70, while the spouse starts taking social security at 62. I did the analysis then and it agreed with the article if I lived past 80 or so, and it definitely helped my Beautiful Gal, who is 5 years younger than I. But now I am thinking that perhaps I would be better off taking benefits now, rather than waiting. My reasoning has more to do with the politicians screwing around with social security than my life expectancy. (After all, the Bible is often quoted as saying that the righteous die young(*) so I know I will live to a ripe old age!) I fear that the politicians will gut the social security benefits so that I will never reach the crossover point. Maybe I should remember Mark Twain's response to false reports of his death -- "Reports of my demise have been greatly exaggerated" -- and think my fears regarding social security are unfounded.

So what opinions / insights can you folks provide me?

Senile Texas Aggie

(*) KJV Ecclesiates 7:15-17 "15 All things have I seen in the days of my vanity: there is a just man that perisheth in his righteousness, and there is a wicked man that prolongeth his life in his wickedness. 16 Be not righteous over much; neither make thyself over wise: why shouldest thou destroy thyself? 17 Be not over much wicked, neither be thou foolish: why shouldest thou die before thy time?"

 

[CntryBoy777]

I posed the question on google and took a screenshot...hopefully it will help ya find what ya are looking for....it looks like a forum that ya could receive direction, if not an answer to your question.....


As far as SS goes....a bird in the hand is worth more than 2 in the bush....imo....nobody knows at what point things will change or life will end....if it changes, then ya stand a better chance of being on the proper side of the door....to be "grandfathered" into whatever it changes to....but, if ya aren't, then getting thru the door may be futile....if nothing changes, and ya wait, the "demise" could come shortly after and ya would have been cheated from enjoying your $$ while still breathing.....life is always a "gamble" and we are All losers at some point, from 1 reason or another.....

 

[farmerjan]

I debated about SS when I was getting to medicare eligibility. Talked to several people. First off I don't know what you made at your work so don't know what you would be eligible for. So I am basing this loosely on mine. I never made alot of money. BUT, when I made the appt at the SS office, they gave me a chart that showed what I would get for each month after 62.5 that I waited for taking SS. I was at 64 1/2 then. The amount that increases by month for me was only about $5 month for each month I waited. $60 m/l per year. I waited for 65 and 3 months because it coincided with when I was going on medicare and losing my full time benefits at work.... PLUS by waiting to the "year" that I turned 66 I was eligible for the increased allowed income to get my full benefit of SS. 17,000 per year as opposed to 42,000 per year on the year I turned 66 (full retirement age) for allowable income before a decrease in SS received.
Another tester and I had some involved discussions as she had talked to her financial advisor and she told her to take it at 62 1/2. It is figured that it takes from 7-12 years to come out equal... In other words, taking less sooner or waiting and getting more at a later time. Say you get 1,000 a month (round figures) at 65. You get 12,000 year for 5 years that's 60,000. At 70 you would be getting 1300/month. So at 75 you would have gotten 120,000 if you took it at 65. If you waited to 70 you will have gotten 78,000 at 75. At 80 you would have gotten 180,000 if you took it at 65 @1,000/mo. which is 1,000 x 12 months/yr x 15 years. If you waited to 70 to take it, that's 1300/mo times 10 years which is 120 months = 156,000. You still haven't caught up taking it at 70 for more money than if you take it at 65 for less money.

I don't know if I am explaining it..... I just know that it makes no sense to wait. @CntryBoy777 is right. A bird in the hand is worth 2 in the bush. I can live on my SS so all that I am making testing and any cattle money is getting me in better shape every month.

From what little I have gathered, not being nosy, please don't think so, you are retired and have a pension or other money to live on. I feel from what you say, you are not rich, but don't have a mortgage, or not much so can live without any hardship month to month. Not saying rich, but you are not struggling to make ends meet.

WHY would you want the gov't to keep any of your money for any longer? They don't pay any interest, and there is no reason for them to keep your money with a "possible" increase of return down the road. If the "rules change" how much of the SS would you lose?
Another thing that the other "girl" at work told me her financial advisor told her; she is diabetic. What if she died at 70? She is not married so no one to get the benefit of her SS.... and if she waited to 70 to take it she would not get any of it or very little. So why wait? She tested more farms for all the years than I did so her SS is higher at 62.5 than mine is at 65. And she is still working too although I think that she has "given" a few farms to another tester so doesn't have to push so hard as I have slowed down with farms that have sold out or gone from monthly to every other month testing.
Yes you have a wife who will benefit if you pass away first. But, say you live to 75 or 80. Then if you pass away, would she want to stay there? If not, she can sell the property and have that as another source of "income" for her older years as well as your SS percentage if it is more than hers.
In the meantime, you can take the SS money, if you don't need it, put it in a Roth IRA that has no requirements for minimum withdrawals, at any age, and she would benefit from that down the road as your heir..... if you have a pension now does she also benefit from that if you pass away? Why not control your money, even in a low return investment, in a Roth IRA , than to let the gov't keep it for any longer.

I am NOT AN EXPERT. But common sense told me I was making a smarter move and I am very satisfied with what I have done.

 

[farmerjan]

I asked my son about a "consumer reports" type of thing for tractors and he said that he doesn't know of any off hand but if you have something narrowed down, he might be able to give you an opinion.

 

[CntryBoy777]

I took several accounting courses in business college in the mid 70s and what @farmerjan stated so well, is what I was taught....been many changes since then and yrs on a memory....but didn't want to miss speak, since I certainly never worked in the "field"....

 

[Bruce]

and the service manager was refreshingly honest.

The key word "refreshingly". I suspect your later comment about the conflict of interest talking down the brands they sell is more likely. Beyond that, sorry I really have no idea but I think TractorByNet is probably a decent place to ask. Find out what brands have nearby(ish) dealers and see what owners of those brands say about their tractors.

As far as SS goes....a bird in the hand is worth more than 2 in the bush....imo....nobody knows at what point things will change or life will end

Yep, witness , never made it to early SS. My mom died just shy of 75, complications of the flu and a RH drug, her older sister lived to a few months shy of 93. You never know where you will fall in this game of life.

From what I understand the breakeven between starting SS at 62 (earliest possible) and 70 is age 80. I heard yesterday on NPR that SS is solid for the next 15 years, no comment made beyond that. I agree with Jan's "guess". If you NEEDED it to live on you would be collecting already. Of course at the moment "safe" investments pay basically nothing but if you took the SS and put it in a "safe" investment, you could push out that "breakeven" age some.

I am kinda in the same boat as you are (if we work together we can row it straight to a destination ), turned 64 last month. Thinking maybe I'll take the SS when I hit 65 and have to pay for Medicare. SS is taxable here and federally (which makes no sense that they are taxing you on money that they took from you and your employer in taxes to begin with). How much is taxed is dependant on income of course. Income will drop a fair bit whenever DW retires from the PO. She's only been a regular employee 5 years and is 58 Y/O.

 

[Mike CHS]

I was going to retire at 62 but the owner of the company I worked for talked me into staying 3 years till the end of the contract which ended a few months after my 65th. We weren't finished with our home and property at that point so it made sense for us not to mention he doubled my pay andlet me work 4 day work weeks as an incentive so that was a no brainer that doesn't help in your case.

My biggest reason for not drawing later than 65 is the huge number of my peers that I served with in the Navy passing unexpectedly never reaching that age.

 

[farmerjan]

My family is very long lived overall..... Parents are now 86 and 85, have some health issues but still alive and going. Mother's side: her mother died young but her father was in mid 90's; his mother also mid 90's, an aunt and uncle both in late 80's early 90's..... Father's side: his father was 87, his mother was 98, mothers's mother was 89 , father's mother was 94 and fathers sister was 102 (104?) . So, if I am anything like the family genes' suggest, I probably should have waited to 70, as by 90 I will have lost about 50,000 I think I figured..... But hey, I might be gone by 85 also. So, I will take it now, a little less, and be glad.
Another thing, I didn't have it before, so it is extra money now. Like I am almost getting a double paycheck, as I usually get per month with working..... so why not take it now and stash away some for future needs.....

 

[Senile_Texas_Aggie]

Thanks, everyone, for your comments and sage advice.

As for finances, I have a small pension (~$550/mo), while all other assets are in IRAs. I have no other source of income, other than my wife's SS pension. We do have a mortgage of ~$2500/mo. Ouch! I had hoped to have our house paid off when we retired, but when we found this place, we decided to buy it and see if we can do OK. I have been withdrawing from my IRAs to provide income. The SS I would receive would permit me to withdraw less from the IRAs, but I still would need to make withdrawals for income.

Here is what I was able to find out from the social security website. I have normalized all figures so that age 70 income is $1000/mo. Here is what I figured out:
age 68: $838.28
age 70: $1000.00
cumulative income from taking SS at 68 when age 70: $20,118.77
age and balance at which the 2 become equal: 80 yr, 4 mo / $124,065.75

So if I delay, I am betting that (1) I will live past 80, and (2) the SS program will not change for the worse in the intervening years. Both are fairly risky bets, it seems to me. So I think I should sign up for SS soon.

As for tractor reliability ratings, I have been researching tractorbynet.com for the past few days, primarily on the forum "Buying/Pricing/Comparisons". I may have to drill down into specific brands to see if I can learn more on what brands and models are better/worse.

Thanks, again, everyone for your thoughts! You folks are great!

Senile Texas Aggie