DearJohn: I was told that I can start collecting Social Securityat 62, and, if I want, at age 66 I could return all the money to Social Securitythat I received over the four years. Then I could start collecting at 66 at the higher ratethan the rate at 62 years old. True or not? B.S.
Dear B.S.Not anymore you can’t — at least not in the way you describe it.
The Social Security Administration says itchanged its withdrawal policy due to a number of media reports that had promoted this as a means of obtaining“interest-free loans.”
“In addition to the cost to the Social Security Trust Fund, this was a poor use of SSA’s limited administrative resources in a time of fiscal austerity — resources that could be better used to serve the millions of Americans who need Social Security’s services,” said a spokesman for the Administration.
The new policy modified existing regulations toestablish a 12-month time limit between the first month of entitlement to benefits and the withdrawal of retirement benefit applications, and allow only one withdrawal in a lifetime.
The new regulationsbecame effective Dec. 8, 2010, and apply to everyone who files a retirement withdrawal request on or after that date. The new rules do not apply to those who requested withdrawal before that date.
So, the spokesman says, “to answer your reader’s question: If he begins receiving retirement benefits at age 62, he will only have one year from his month of entitlement in which to withdraw his application.”
Bottom line: You can now game the Social Security system for one year instead of four.
Dear John: When the “speculators” start buying oil,somebody’s gotta sell it to them. So, yes, they can move the market short-term, but with a market asdeep as the world oil market, how much can they buy and how long can they hold it before market forces come into play? M.F.
Dear M.F. If speculators could make money by driving down the price of oil, they’d do it. Butthe path of least resistance for decades has been to bet on the rising price of oil.
Why? Because no matter how much demand for oil and gasoline declines (as it has since the recession), there is always a storm somewhere, political unrest somewhere else andthe “threat” that the economy is going to pick up speed and more energy will be needed.
So there’s always a rumor to spread to get the price of oil back up.
And without putting some sort of stricter controls on the oil market, the price will always gravitate higher. How do I know? Because it’s been doing that for years despite the fact the worldwide demand for fuel is down and supply of oil and gas is up, thanks to fracking, new oil reserves discovered andmore efficientautomobile engines.
Yes, there is a seller for every buyer of oil contracts. But if the seller/buyer analogy actually meant anything, no stock or bond would ever move in price: There is always someone selling to a buyer.
Wall Street has been trying to talk up the price of energy because it makes money this way. Oil companies don’t mind higher energy prices because they can charge more for their product, and they make money on their futures- trading positions.
So there are a whole lot of bullies on the side of higher oil prices and a bunch of weaklings trying to keep the price down.
And that’s why you are paying more for gasoline right now. And that’s why the economy will suffer. And that’s why something needs to be changed.
Send your questions to Dear John, The NY Post, 1211 Ave. of the Americas, NY, NY 10036, or john.crudele@nypost.com.