Pay me now or pay me later.

[Mik]

We personally.

[mark]

How? I don't see much downside to taking it now.

[Mik]

To take $5k now foregoing three months benefits would cost us nearly twice the loan amount. We get pretty hefty SS checks due to high covered earnings.

[George K]

https://finance.yahoo.com/news/heres-every-states-average-social-132355610.html

The average SS check in Illinois is $1557.

You're about $500 ahead if you take it now.

However, as Mik said YMMV. I would take a hard pass.

[mark]

Take the $5k and invest it.

[Jolly]

I'd take it. My SS is cut by about 65% due to WEP. And the wife wouldn't get a dime of my SS due to GPO.

[jon-nyc]

I think most people would take that. 3 months delay in your 60s sounds trivial to your average 20-50 year old.

[mark]

Work for cash for 3 months. lol

[jon-nyc]

Most people would think ‘I would have gone 65 years with no Social Security, what’s another 3 months?’

[George K]

@jon-nyc said in Pay me now or pay me later.:

I think most people would take that. 3 months delay in your 60s sounds trivial to your average 20-50 year old.

Good point. A dollar now is probably worth a lot more than a dollar 30 years hence.

[Mik]

So this would go to people who were not yet eligible to collect, possibly for many years? I did not get that understanding.

So it results in another government program we have to administer for decades. What could go wrong? Ever see a government program that didn't grow? I can see the whole country borrowing against future SS.

[Jolly]

@George-K said in Pay me now or pay me later.:

@jon-nyc said in Pay me now or pay me later.:

I think most people would take that. 3 months delay in your 60s sounds trivial to your average 20-50 year old.

Good point. A dollar now is probably worth a lot more than a dollar 30 years hence.

Social Security is adjusted for inflation.

Supposedly.

[George K]

@Jolly said in Pay me now or pay me later.:

@George-K said in Pay me now or pay me later.:

@jon-nyc said in Pay me now or pay me later.:

I think most people would take that. 3 months delay in your 60s sounds trivial to your average 20-50 year old.

Good point. A dollar now is probably worth a lot more than a dollar 30 years hence.

Social Security is adjusted for inflation.

Supposedly.

I realize that, of course. The point Jon was making, I believe, is that $5000 is much more valuable to a 35 year old today than the equivalent inflation-adjusted amount 30 years later.

[mark]

I'm 58 (really? when the fuck...?) and it's worth more to me now, than at 65.

[Copper]

3 months of my SS is a lot more than $5K, my wife too.

[LuFins Dad]

Personally, I like the idea so long as it doesn’t open Pandora’s Box and become something that happens for every perceived emergency.

It’s better than the fed printing money and devaluing your retirement savings through inflation.

[Jolly]

@George-K said in Pay me now or pay me later.:

@Jolly said in Pay me now or pay me later.:

@George-K said in Pay me now or pay me later.:

@jon-nyc said in Pay me now or pay me later.:

I think most people would take that. 3 months delay in your 60s sounds trivial to your average 20-50 year old.

Good point. A dollar now is probably worth a lot more than a dollar 30 years hence.

Social Security is adjusted for inflation.

Supposedly.

I realize that, of course. The point Jon was making, I believe, is that $5000 is much more valuable to a 35 year old today than the equivalent inflation-adjusted amount 30 years later.

Depends on the H&B (Hookers & Blow) Index.

[mark]

@Copper said in Pay me now or pay me later.:

3 months of my SS is a lot more than $5K, my wife too.

It's a not a guaranteed full 3 months that is the max it would take to repay. If you make more than that, it will get paid back faster than 3 months.

[Mik]

If one already makes more than that why take the loan?

[jon-nyc]

If you have high time preference or a low life expectancy it makes sense.

Or if you think it’ll be worth more invested in something