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Investing - Theory, News & General • Collecting Social Security at 62 Leaves Me (and My Heirs) Better Off, Every Time

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3.5 % real is a pretty high discount rate for modeling.
Open Social Security generally uses the real yield of the 20yr TIPS, currently around 1.9%. Higher discount rates favor earlier claiming.

20yr TIPS is probably the best risk free rate to use for an inflation protected benefit like SS.
I used 3.5% real, which is well below historical returns for a 60/40 AA, and my
analyses still favors my claiming at age 70.
As I recall John Bogle used 2% in "Common Sense Investing."

Statistics: Posted by Charles Joseph — Mon Feb 05, 2024 11:47 am — Replies 48 — Views 4036



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