3 Reasons to File for Social Security at 62... and 3 Myths!

Рет қаралды 145,236

Күн бұрын

When are you filing for Social Security? Is this the optimal time for YOUR retirement? Many retirees make common but preventable Social Security mistakes. You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to www.safeguardinvest.com/contact.
Timestamps:
0:00 Should You File for Social Security at 62?
0:30 Reason #1 - File At 62
3:35 Reason #2 - File at 62
5:36 Reason #3 - File at 62
6:38 Myth #1 - You Can Spend More By Filing Early
9:22 Myth #2 - File Early and Invest is Better
12:27 Myth #3 - S.S. is Going Broke
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Пікірлер: 332

@timwatts5391 7 ай бұрын

I've always believed that the one way to get Congress to 'fix' SS is to eliminate their cushy retirement plans and put them all in the same system as the rest of us. Sadly, that would take an act of Congress.

@markbernhardt6281 7 ай бұрын

They were supposed to go to Washington, spend 2 years there then return home to run their blacksmith shop.

@ItsEverythingElse 7 ай бұрын

SS is a pyramid scheme. The only way to fix it at this point is cuts or tax increases.

@rayzerot 7 ай бұрын

We could fix healthcare if Congress had to be on the same healthcare as the rest of us too

@jpny4750 7 ай бұрын

Most people in congress are millionaires, they don’t rely on social security.

@timwatts5391 7 ай бұрын

@@jpny4750 True. The problem is that very few are millionaires before they get to Congress.

@joycecox8285 6 ай бұрын

The one thing you can’t regain once lost is TIME. Being that TIME waits for no one, I will be collecting as soon as I’m eligible.

@danielmoore2320 6 ай бұрын

Exactly

@oldbloke204 6 ай бұрын

Do you have other retirement savings etc to increase the amount you will have to live on? I've seen what can happen when people run out of money later in life or when they have health issues with no resources.

@ericlee2931 6 ай бұрын

You still have the same amount of time with or without SSI... What so bad about showing displine and working a few extra years to lock in a MAX ssi benefit?

@Mark-qv4bn 6 ай бұрын

I signed up at 61 and 9 months to the day. 4 years of checks, and I'm still working. 😂

@oldbloke204 5 ай бұрын

@@Mark-qv4bn We can't get a pension here until we're 67 but I retired self funded about 4 years ago just before I turned 60. I've thought about working on and off as I could still earn decent money but the thought lasts for about 5 seconds.

@Brutushungwell 3 ай бұрын

Took mine at 62 and living life as I should

@Hhopiuygv 4 ай бұрын

62 and working part time love it

@wren3347 3 ай бұрын

This is what I'm doing. And I have a schedule that fits my lifestyle.

@MrDavkoz 2 ай бұрын

I'll qualify for early retirement in 2 years also. May I ask, how do you cover your medical insurance? Part time work generally doesn't qualify for health insurance coverage.

@commonsenseisntcommon1776 6 ай бұрын

I'm 5 yrs from 62, and that's when i'll take mine!

@oldbloke204 6 ай бұрын

Got plenty of other retirement savings to back up SS? Being broke and old isn't much of a plan.

@lizadivine3785 6 ай бұрын

I took it at 62 and am so sorry I did. The cola increases will not keep up with inflation.

@rayosullivan4398 5 ай бұрын

Fanta also

@deloresredman4792 Ай бұрын

62in September

@MrEdwardCollins Ай бұрын

@@lizadivine3785 If it's been less than a year since you filed, you can do a DO-OVER. Social Security allows you to change your mind once during the first year of receiving benefits. You have to pay back everything you've already received that year. I believe it's called Claim - Suspend - Restart.

@curtisthomas-eg4th 5 ай бұрын

Usually, its not about the total amount of money you collect before you die. It is about whether you can live on what you are collecting monthly.

@georgelewis8831 5 ай бұрын

I agree and what most people don’t figure into it is inflation! At seventy the additional money won’t buy as much as it does now!

@Bob-xt2on 4 ай бұрын

The older you get the less you’re gonna spend you’re gonna be sitting around the house or God forbid in assisted living. Take it when you’re young.

@jrp616 6 ай бұрын

The one critical factor in all these best age to start SS discussions, that we don't control is how long are we going to live. Unless you already have a terminal disease or have an in with the man upstairs, your life expectancy is an unknown moving target, that changes the answer to what is "best". For many of us the decision is between starting SS early or delaying retirement. Only you know whats "best" for you. Do your own analysis and don't rely of the so called experts. I retired at 60, had enough saved to live on and wasn't concerned about maximizing my SS payout. I started collecting at 62, that was 15 yrs ago and I've never looked back or doubted my decision.

@william-fla-321 6 ай бұрын

Congratulations, you won. You’re enjoying the money while you can walk and at the healthiest ages in retirement.

@thebootielover 3 ай бұрын

40 years of corporate America. I took mine at age 62. Then I cheated and filed for SSDI. It was a 3-year battle, but I won my SSDI. Getting FRB now. I have 1y left for my SSDI to turn back SSB. Downsize to Independent Senior Living. So I'm good.

@william-fla-321 3 ай бұрын

@@thebootielover Teach me master ! I have a hip problem and I limp into work everyday. I would like to get disability around 63 and quit playing the game. Do you have any advice for a brother in need ?

@kurtbilinski1723 23 күн бұрын

What biases the data are those who retired early, lived longer than expected, ran out of money, and now live in a cardboard box under a freeway overpass. With no smartphone, we don't see their comments on how earlier is not always better.

@thomasmoshier3920 7 ай бұрын

One of the most sane and reasonable videos I’ve see on taking SS at various ages. There are two other constants in life other than death and taxes. They are: politicians love to get reelected and old people vote. SS gets fixed I have no doubt. If SS is your primary source of income in retirement it’s always better to wait. The beauty of SS is that it doesn’t care if there’s a war in Ukraine, China invades Taiwan, or what political party runs Congress. Your check is in your account every month. While your IRA will fluctuate accordingly.

@jan3195 7 ай бұрын

The most valuable (information wise) channel on KZfaq, Eric. Thank you!

@YouTuber-ep5xx 5 ай бұрын

Money tends to disappear. Always take money ASAP

@Bob-xt2on 4 ай бұрын

Especially considering when you’re 80 and up, you’re not spending as you are when you’re 65 to 70 you’re sitting around the house or assisted living if even alive

@thzzzt 26 күн бұрын

I've seen several videos on this same topic, but you are the first to breach the issue of SS solvency. Thanks for your take on it.

@RocketRenee46 7 ай бұрын

Omgosh with this video! Amazing information! Thank you! Thank you! Thank you!

@Jon-sg6gf 7 ай бұрын

I took SS at 63 and am using it to pay the taxes on my Roth conversions. It does mean I convert a less. The reason I did this is because I view my taxable accounts (where I would have to pay the taxes on conversions from) as my money, and by taking SS earlier I am paying the taxes on the conversions with my uncles money. When I hit FRA I will have the option again of stopping SS and letting it grow again. That is called claim, suspend, restart, you can look it up at fidelity. Who knows if it will be here in another year, but for now it is available. I did a lot of planning and put a lot of thought into taking SS early so that I could use it to pay the taxes on the conversions.

@fordguy61mi 4 ай бұрын

At 70 on your death bed, wanting to buy back the last 8 years that you worked for a bigger benefit. Not gonna happen. Not with any amount of money, You're gambling every minute you wait after 62. If you can, retire as soon as you can and enjoy your life.

@juangarcia8828 4 ай бұрын

I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?

@sammencia7945 Ай бұрын

@Fordguy No you are not dead at 70. EVERYONE IS NOT DEAD AT 60 OR 65 or 70.

@sammencia7945 Ай бұрын

A 62yo has 50% chance to live to 81 and 75% chance to live to 77. I get it. You hate work. Everyone doesn't.

@kurtbilinski1723 23 күн бұрын

@fordguy61mi: So, no one lives over 70... right. In the real world, if my parents had known that they'd live into their mid-90s, they would have held off for the larger check...

@richh650 5 ай бұрын

Excellent video and very important information. Thank you!

@OnCashFlow 6 ай бұрын

I'm in my 20s but I still like to learn about Social Security and how it works, etc.

@miguelinamarcano5253 5 ай бұрын

ss wont exict by the time you retire

@rayosullivan4398 5 ай бұрын

20S my God why would you give a Bollocks about social security at that age you need to chill.

@WilliamAkins-rw2hv 2 ай бұрын

Still good to understand it early.

@xporkrind 6 ай бұрын

Great video. Super helpful information.

@phillipdale6765 29 күн бұрын

Thank you for this info

@bosoxer4eva 3 ай бұрын

If you have other investments, pension, etc, and don't really "need" the social security, why not take it early and invest it all. That way you're making extra money on your SS, instead of the government. Break even becomes much longer then as you're getting extra money the same as if you had waited years to take the money.

@gbb82 3 ай бұрын

This is a great point and surprised that most financial KZfaqers don’t mention that.

@az10sbum1 2 ай бұрын

But if you are working, consulting, etc, you get taxed heavily on SSI if you take it early, right?

@kurtbilinski1723 23 күн бұрын

Holding off collecting means it's gaining 6% + cost of living - guaranteed - with zero risk. Getting 6-11% from stocks is certainly Not guaranteed.

@commonsenseisntcommon1776 6 ай бұрын

Do any of us know when we'll die? I'll take mine when i'm healthy!

@ericlee2931 6 ай бұрын

What? Are you planning on being not healthy just 4 years later at 67? Take your minimum for life.... I will take the almost double at 67 while exercising and taking nutrition while enjoying saying goodby to the coworkers from 62 to 67 You should place your bets of living rather than betting on dying

@MrEdwardCollins 5 ай бұрын

Yes. Some people do know when they will die. Some people have a terminal disease and can almost accurately predict exactly how much time they have left. For those people, the choice to take SS now would be a no-brainer. However, for others, the very fact that you don't know when you will die is a valid reason to wait. For example, for a healthy 65-year-old woman, there is a 72% chance that woman will live to be at least 85 years old. There is 54% chance that same woman will live to be 90. Finally, there is a 31% chance that same woman will live to be 95! Taking it early simply because you are "healthy" and you don't know "when you will die" is a very poor reason to take it early. To clarify, taking it early might be fine... but not for the two reasons you gave.

@strothermartin5368 5 ай бұрын

I took mine at 62 and I never looked back!

@MrEdwardCollins 5 ай бұрын

How old are you now? What was your main reason for taking it early? Did you need the money? If you make it to your mid to upper 80s, do you think you then might regret taking it early? (As you probably know, the total amount received by delaying until you are 70 will be substantially higher at the age of 85 or so, than if you took it at age 62, with the 30% reduction in payouts.)

@strothermartin5368 5 ай бұрын

@@MrEdwardCollins I worked as a cleaner in the public school system for 25 years. Very physical work. Especially in the summer time. All rooms are scrubbed from ceiling to floor. Every stick of furniture scrubbed down. Taken out. Floors striped waxed. Furniture put back in class rooms. It's like moving four to five houses a day. My knees about had it. House paid for. No debt. Good pension,403B S.S. And my savings. Doing well. I might have stayed a little longer if I didn't have to do the work of two people. Part-time position was eliminated when he retired .

@timcoleman3421 2 ай бұрын

@@strothermartin5368How did you manage health insurance?

@strothermartin5368 2 ай бұрын

@@timcoleman3421 I worked for the state. Took my health insurance with me.

@strothermartin5368 2 ай бұрын

@@timcoleman3421 I have health insurance from my job.

@andyklapper8484 7 ай бұрын

I look at delaying ss as a form of longevity insurance. If my wife and I live into our 90's and spend most, all?, of our money, by delaying ss we have the maximum amount of guaranteed, inflation adjusted, income coming in to live on. Not a massive amount, but a lot more then we would have had if we took the money at 62. Plus, it gives us a larger roth conversion window.

@markbajek2541 6 ай бұрын

Yes and no, IF you are healthy sure , but plenty of people get some type of lingering issue that pops them into either independent care, assisted living and or a nursing home in their late 60's early 70's for a really long time, not just one or two years but decades.. they first drain their funds and assets to medicaid status and then get warehoused in a bedlam style nursing home , with 3 beds in a room, the smell of feces and urine everywhere, along with some painful screaming...throughout the halls. . Medicaid takes your SS benefit as a cost reimbursement for that room, food etc regardless if you pulled the trigger at 62, 67, 70.. It might be better if you can afford it to take it early cushion the healthy years with extra money and if the time comes the state snags the lower money amount in your dwindaling years..

@andyklapper8484 6 ай бұрын

@@markbajek2541 Yes, if you are obese, or a smoker, or already have a chronic condition, or your parents or siblings had serious early medical problems, then yes, you take the money early betting that you don't reach the break even point (which a ballpark estimate would be 80). (also note that the closer to 80 you get, the smaller the amount you gave up is). The other issue is can you live well without taking social security. Me, personally, based on my current health, how I've lived my life, and my family history, living well to 80 isn't unreasonable. (Though I could be delusional). So, I'd rather risk not getting the maximum benefit, for the peace of mind that I'll get the extra money if I do live well into my 80's.

@yesiamsharon 2 ай бұрын

My health is not so good so I’m planning on 62 and budgeting for high monthly insurance premiums.

@Dave-sw2dm 6 ай бұрын

My plan is to hold off on SS until I decide I need to take it because of factors like a 2008 drop in stocks. My goal is FRA but may go longer depending on other factors. My wife has a minimum SS benefit and doesn't want to deal with a portfolio so max SS would benefit her if she outlives me.

@jefflloyd394 Ай бұрын

Plan to take SS at 70. It is the best and cheapest longevity insurance. Even if you die early, it is insurance. Not to mention the best way to care for a younger or low earning spouse. Thanks Eric, always good.

@RPJohnson1968 4 ай бұрын

I’m starting to look at it myself, but as long as I’m healthy, I will wait as long as I can but during the meantime, my wife and I will be trying to enjoy more of our time regardless

@jeffb.2469 4 ай бұрын

Reason 3: "assuming the longevity expectations work in your favor" - this says it all

@resterAnonyme 7 ай бұрын

Will have to wait taking SS to do Roth Conversions.

@kidneycarecoaching3766 3 ай бұрын

Why do people convert if you withdraw money while in retirement in small increments won’t you be in a lower tax bracket anyway?

@aliciabrowndocken4660 6 ай бұрын

I chose to retire at 65.5 and I was earning $115,500 a year at that time. We are Debt Free Homeowners with a $1,300,000 investment portfolio. I started collecting Social Security at age 65.5. We currently collect a combined Social Security benefit of $3,750 a monthly after taxes. I am the primary bread winner and my spouse's portion is 50% of what I receive. I also receive $721 in a retirement and my spouse also collects about $1,000 a month in a retirement benefit. We have about $5,500 a month in total monthly income. We only withdraw growth from our investment portfolio during high performing years. For us it seamed like collecting Social Security after I retired was the most beneficial thing to do.

@hojo70 5 ай бұрын

All these specific and personal financial details seem like something you should be sharing with a financial advisor, not a bunch of strangers on the internet. Good luck with your future, I hope you don't end up murdered.

@TM_Stone 5 ай бұрын

@@hojo70Maybe their spouse has a hefty life insurance policy and is putting out the feelers for one of the 7.5 million invaders to pay them a visit.

@stephenyoung2742 5 ай бұрын

Age 65 but have money in IRA wait till thats gone and take at 70! My uncles who have died age 75 to 90! Have a Uncle 88 now still alive! Right now thinking of doing a senior part time work program since I haven't worked during covoid just to pass time while I decide where to retire! Use that for moving money plus housing shortage at least 3 year waiting list and better live near medical and senior services! Almost 4 hour trip here now cut it to a hour!

@consciouscrypto3090 5 күн бұрын

A lot depends on the job you have. Physical labor? Go while your body can still let you enjoy life. Desk job with low stress and lots of freedom over your schedule? Why retire early?

@karmennash7479 7 ай бұрын

Great summary and the best I’ve seen thus far on SS insolvency. Thank you!

@rickynorris1694 6 ай бұрын

BTW, very informative video.😊

@jejunamja 19 күн бұрын

Interesting video ...I'm not sure why everybody talks about the break-even point. I don't really care about that...what I care about is living at a certain lifestyle like being able to buy fresh fruits and vegetables being able to live in a safe area being able to live in an area where I can exercise outside these are things I care about I don't care about money in the sense that I get back as much as I put in. I just want to live a healthy lifestyle for as long as I live.

@paulsackles1329 7 ай бұрын

Always great information Eric & team; sound, fact based, data driven guidance is so important, nice work presenting this topic!!

@jefflloyd394 7 ай бұрын

I believe in filing late, but does the math include the stealth tax increases on social security? (Set limit for trip to 50 and 80% taxed, and then higher tax rates levied against the 50 and 80%)? Thanks Eric, Cheers

@starspica1 6 ай бұрын

I took mine at 62 and 6 months I never regretted it and am over 10 years ahead of those who waited. Not to mention if s/s goes belly up, at least you have yours!!

@ericlee2931 6 ай бұрын

Hope you have retirement accounts. or you will have regrets.

@MrEdwardCollins 5 ай бұрын

Social Security has been in place for more than 80 years. Taking SS early because you think it might go "belly up" is a very poor reason to take it early. There's absolutely no evidence or valid reason to believe the system will go "belly up." Yes, for the first 16 years, if you take SS early, at age 62, you will be ahead of anyone taking it at age 67. This is true. It's only after those first 16 years, and then for the rest of your life, that you might regret taking it so early... when the small checks you receive no longer are enough to cover your expenses.

@LeonD519 Ай бұрын

@@MrEdwardCollinsyou seem to know how long you have, you are awesome and can see the future

@MrEdwardCollins Ай бұрын

@@LeonD519 No, I don't know how long I have and no, I can't see the future. And that's the point. Not knowing how long you have is just as good of a reason to take it as _late_ as you can, as it is to take it _early._ The statistics from any Actuarial Life Table will show you the average 62-year-old male will live to be 81 years old. That's already several years past the break-even age of 78 and eight months.

@joem.7621 5 ай бұрын

Excellent math.

@lonwoock9881 5 ай бұрын

Delaying makes sense even with a short life expectancy if your spouse has a lower benefit and a longer life expectancy.

@wayward03 5 ай бұрын

Also the type and income of your employment when you are close to retirement age matters as well. If you have a cush job, with lots of vacation time then maybe delay and do the traveling while you are still working.

@surrelljr Ай бұрын

What I usually don’t see mentioned is if you have a pension, especially government. I have a pension, so I took social security at 62, which is how the system was originally intended to work. It was a supplement to your retirement, so I used what investments I had to pay off debts at 59. I don’t regret that decision, and I am I good enough health to enjoy retirement. My family average life expectancy is 83, however I am also Native American where the life expectancy is considerably lower. (I already outlived that!) so it’s a crapshoot. Do what is right for you, going for that last dollar might not be worth it.

@davejoseph5615 5 ай бұрын

As you say, if you expect to draw from invested savings that will require that a several year portion of that portfolio be kept in very safe investments, and that will limit the overall portfolio to a lower average return.

@bobbym7340 5 ай бұрын

The other thing you have to understand is that in order to gain more money in the long run it’s estimated your Ernie’s stay the same so that means you must continue to work till you’re 70 years old if you want the full benefits who wants to continue to work until that ageonly to recover what you lost at an age 85 when you first see the positive side of your benefit and by then you’ll be 6 foot under in most cases

@michaelcrossman6951 5 ай бұрын

Or if you do drywall

@marylandmike7655 7 ай бұрын

There are so many variables in when to take, think of it this way, you’re trading time for future $$$ and you CANT get time back. Me and my wife are taking it at 62 Social Security will cover all our expenses as we will gave 0 debt

@websterhays8352 6 ай бұрын

Best to wait until you are 70. Why opt for a small check???

@marylandmike7655 6 ай бұрын

@@websterhays8352 Our health is not promised, we have approximately 800k in retirement accounts and our combined S.S. checks will cover ALL monthly living expenses, giving us the freedom to travel and vacation while we’re still young and healthy enough….. $$$ can’t buy time or health, we’re gonna live in the moment!

@KentAndrewLang1967 5 ай бұрын

When one of you dies the survivor only gets the higher of the two social security checks. Not both. Maybe you already know this?

@marylandmike7655 5 ай бұрын

@@KentAndrewLang1967 you are correct, I didn’t mention we have 1 pension and about 800k saved, my wife is higher earner and we are considering waiting till 70 for her on S.S. For tax and RMD’ s reasons

@dogegamer3288 7 ай бұрын

You forgot cash in before the ponzinomics of it collapse.

@randy74989 6 ай бұрын

Three reasons: None, none, and none. Unless you have lost your job and in poor health; however, if you don't have medical insurance, you are "screwed" until Medicare kicks in. If you are on Medicaid, now that's a different story all together. FRA or wait until you are 70 if you can. It's a multivariate equation and cannot be one size fits all. If you can't figure it out, then hire a fee only RIA to run the numbers, analyze your situation and make recommendations/options, period EOS!

@theocean4767 6 ай бұрын

I don’t really plan on needing SS since my wife’s pension will cover our expenses. I was thinking if we did need extra $ that I would start collecting SS early to preserve our savings to pass on to our kids.

@tomcavanaugh5237 7 ай бұрын

The money to live on has to come from somewhere. There's an opportunity cost of pulling funds from somewhere else that doesn't seem to be often considered in this sort of presentation, which should be considered. Taking social security early and saving money in investments, savings, 401ks, etc., that would otherwise have to be drawn upon. That would reduce/mitigate the potential loss of post age 78-84 social security income. To me it was worth taking the money I can't control, rather than spending the money I can. That drops the longevity gamble from the equation and, even with pessimistic projections, it doesn't seem to put you far behind comparatively.

@trave7644 7 ай бұрын

So are you saying we should take social security at 62 or not? Not clear

@barbiec4312 7 ай бұрын

@@trave7644looks like he’s saying early so that you don’t have to spend from your investments.

@randolphh8005 7 ай бұрын

I’m not arguing about the opportunity cost of money, but the rest of your premise is flawed. If all goes to crap and the Gov can’t meet its obligations do you really think that they will lower the benefits of people over 78, before they tax retirement funds of the “wealthy” that have a portfolio. They already are constantly changing the rules on IRA’s, RMDs, Roth and SS claiming. But,they never reduce SS benefits for those already drawing. Much more likely to increase tax on your million dollar portfolio, than lower granny’s benefits

@tomcavanaugh5237 7 ай бұрын

@@randolphh8005 My only premise is that these presentations don't clearly include that opportunity cost and that it's worth consideration. Beyond that, unless you live past 82 (plus or minus a couple years), it doesn't matter when you take it. So, how far is it past that break even age is it before all the fretting being done over when to take social security proves to have been worth the time it took to fret about it? 88? 92? If the biggest thing you have to grouse about when you hit 92 is that you could have come out $40K (or whatever it turns out to have been) ahead by delaying social security until you were 70, you're probably doing OK. Remember you'll still need to keep attention on those pesky neighbor kids that keep stepping on your lawn. And, if you don't take it at 62, the money needs to come from somewhere, possibly continuing to work. So, take social security whenever you want. I took it at 62. I'm still not sure that it was the best answer. I only know it's not as bad a decision as some might suggest it was. I paid for access to New Retirement so I could run the scenarios and whether I run them with pessimistic or optimistic projections, they don't come out that different, all things considered.

@mrallan8063 7 ай бұрын

M1 and M2 are not entirely myths. It can be true depending on your assumptions, or how reality plays out. IMO, I would agree 10% is too aggressive, but 5% is too conservative. An assumption of 7% LT is more realistic. Predicting the future is hard, but always planning for the worst is no way to live.

@c2shiningc176 2 ай бұрын

Take it At 62 no matter what invest and save what you can... That is better than dieing and uncle sam keeping it all. Unless your working or taxed out of it. Better to give it to your kids or charity rather than uncle sam I'm just saying. P.s. a great video and helps others, your a blessing to many. Thanks

@Matt-vx1wt 4 ай бұрын

If you can afford health insurance. If you don't have a job that you can and still want to work for more money and benefits. If you have assets to supplement income. If you are not able to work

@wren3347 3 ай бұрын

Retire early and take it at 62. They're hoping you wait and drop dead in the interim.

@CoachDarren 3 ай бұрын

Exactly! People in here acting as if they going to live forever..Even if you are healthy now tomorrow isn't promise if you live to 62 you should take it.. They want you to gamble but this isn't Vegas.

@alphawerewolf3802 3 ай бұрын

@@CoachDarren💯👍👍

@scott3805 6 ай бұрын

According to ss website I can't take my ss early. I get this message --> No benefits can be paid to you because your earnings are too high

@markbajek2541 6 ай бұрын

Thanks for being one of the 1% and paying the lion share of tax dollars.

@billmesheimer1513 3 күн бұрын

Is your house paid, do you have bills?

@charlesfrench9557 Ай бұрын

What if each spouse is 62 years old. One spouse has no work credits and can only claim spousal benefits if the other spouse claims. The spouse with credits gets a reduced amount for claiming at 62 and the spousal benefit at 62 is another 1/3 of a share of the full retirement benefit of the other spouse. Together the total claim of both spouses at 62 is elevated and can then accumulate and reduce the amount drawn from investments for the five years between age 62 and 67. When this total amount is allowed to grow it can easily push out the crossover point and be a better choice than waiting until 67. In addition the early claim reduces the sequence of return risk by allowing more time for unused investment growth beyond age 62. Please share your comments on this special case.

@KentAndrewLang1967 5 ай бұрын

Your social security is taxed if your income is over $25k single or $34k married. Maximum benefit is $58k a year.

@tedjohnson4451 7 ай бұрын

Ten days after I turn 62, my CalPers Pension hits 71% of Contract Wages. Social Security 90 days after is 29% of Wages. Take Home pay increases roughly $700 Monthly. [No more Pension or Social Security Contributions] Taxable income rises a bit. [No more IRC 125 Deductions]. If i was going to Keep Working... Total Pensions would increase 6% between age 62 & 63 PLUS 3.5% per year afterwards in round figures. BUT, I'm tired and want a change. My Debt is minimal. My belongings will be minimal by the time I leave for SE Asia to Vacation for the following three years. At 65, When I'm Medicare Eligible, if I'm tired of SE Asia & Warm Weather, I can return.

@Dave-sw2dm 6 ай бұрын

Will your pension include COLAs? At the same level as SS?

@tedjohnson4451 6 ай бұрын

2% Statutory COLA with an 80% Purchasing Power Protection Allowance paid in May [Yearly Lump-Sum] IF the COLA has fallen behind. @@Dave-sw2dm

@LoveKills70 7 ай бұрын

Thank you Can u use s.s To pay for 401k roth Converstion?

@SafeguardWealthManagement 7 ай бұрын

Of course. Withholdings from S.S. will cover some of the tax liability but you can also make estimated tax payments from your S.S. benefit once it hits your savings

@user-uq8ny9qh5f 15 күн бұрын

Do I have to wait for my ex to turn 62 so I can get his SS. In a few months I’ll be 62.

@kevtop351 3 ай бұрын

Who pays the medical bills?

@c2shiningc176 2 ай бұрын

Time vs. money need i say more

@SpeakerBuilder 6 ай бұрын

I was committed to waiting until age 70 and getting the greatest monthly amount, given I do not need the money now since I am still earning a good salary from rental income, and I am in very good health and therefore can guess a long life expectancy. Then I recently did the math on how much more money in total that I will get in SS benefits after age 81 through age 90 due to the greater monthly amount. The total increase in benefits was about $20k by waiting til age 70 vs 69, and another $20k, or $40k total additional benefits by waiting til age 70 vs 68. These amounts are not that great, and the greater difference equates to about one year of benefits. I decided to no longer wait and will start taking benefits next year at age 68.

@scottlemiere2024 5 ай бұрын

Set a max payout, ditch the income cap.

@bartsimpson1597 6 күн бұрын

My family typically lives well into their 90s on both sides. I'll wait til 70.

@pointreyes4272 5 ай бұрын

From Social Security, Life Expectancy at 65: male 81.9, female 84.6. What am I missing here? 3:31 of your video shows men 84.2 and female 86.8. That is a huge difference. Please explain

@KentAndrewLang1967 5 ай бұрын

I’m guessing those were pre-Covid life expectancy numbers and the numbers when down because of Covid deaths.

@matthewwilliams9200 5 ай бұрын

I wish they allowed a opt out option let me and my employer choose where I want the money.

@saversavvy2670 3 ай бұрын

They do. My grandfather was a farmer an opted out of social security. He instead always used the amount of money that he would have paid to social security to save and buy more land. You will guess right if you guess that was a good decision. He worked hard in the warm months and lived easy in Florida in the winter. Died with many acres to leave his kids with.🌞 In his retirement he lived off renting out the farm land.

@matthewwilliams9200 3 ай бұрын

@@saversavvy2670 only certain people can do it like preachers and such

@jeffb.2469 4 ай бұрын

My break even age is 77 and a few months. I know that as I continue to work, I am paying into FICA, a program that I will never live long enough to see a return from.

@MrEdwardCollins Ай бұрын

Everyone's break-even age is exactly the same. It is not based upon each person's individual income. It's a simple formula. For those who were born in the year 1960 or later, the break-even age from 62 vs 67 is age 78.67 which is 78 & 8 months. From 62 to 70 it's age 80.37 which is about 80 & 4.5 months.

@jeffb.2469 Ай бұрын

@@MrEdwardCollins I know if I delay collecting SS, my monthly benefit will be higher. But what I was trying to say was that if I stop working today and delayed filing, vs continue to work while paying into the system until FRA, my benefit amount is nearly the same. I'll continue to work a bit longer because of the paycheck, even though my SS will not increase when I go to collect.

@GoodGuysCarry 6 ай бұрын

I think I almost understood what you’re saying. I wonder if you’re related to my wife?

@jacksonlee3771 3 ай бұрын

Get it at 62 while the US government is still solvent. I believe it won't be for too much longer.

@Pje3ski 7 ай бұрын

So the break even taking it at 70 is between 80 and 85 and the life expectancy for a male is 84 something. You are not selling me on taking it at 70. I’m sticking with the FRA or slightly earlier, lol

@ItsEverythingElse 7 ай бұрын

Me too. I'm taking it as soon as I retire, be it 63 or 65 or 67. If I do make it to 85 or 90 I can't imagine I will be spending a lot.

@randolphh8005 7 ай бұрын

Waiting till age 70 can make sense if you have a spouse that takes early. Remember for a couple the larger check goes to the last person alive. We are in that situation, wife gets $2500, took at 63, I will get $4500 at 70. We both retired at 63. All our parents made 87 and mom’s are still alive. The “break even” is only relevant when dying young, otherwise SS is inflation adjusted, and guaranteed till death, that is a pretty good insurance policy. We don’t really worry about running out of money, and thus can spend down our portfolio sooner and more aggressively which we are currently doing while still “young and healthy”

@DonaldMains 7 ай бұрын

Why? if the breakeven point is between 80 and 85 and life expectancy at 70 is 84, then isn't it a 50/50 guess? I can't follow your logic.

@randolphh8005 7 ай бұрын

@@DonaldMains the “break even” is actually between age 77 and 83. In addition the average age of death for a 65yo is closer to 83-85. Also SS is the same for males and females, but females live about 2-3 years longer than men. Also the break even math from Social Security hasn’t changed in recent years despite life expectancy being higher now than 20 years ago. This means that more than half of retirees will make it past the break even, especially women. It is not a 50/50 proposition because you start getting more money past the breakeven by delaying and you have a larger check that goes to the last person alive. The increase in SS between 67 and 70 is 24% and it is guaranteed and inflation adjusted. For a couple the breakeven is more complicated but since the larger check goes to the last person alive, and on average one spouse will make 90 for a 65yo couple, delaying can make sense. So in the end delaying has the best outcome if you have average or better life expectancy. Obviously there are other variables that can affect timing Good discussion!

@DonaldMains 7 ай бұрын

Are you sure? I've heard that the breakeven is 78 at FRA.Makes sense that if you delay SS for 3 years until 70 the breakeven will increase as well, though not a one year for to one year relationship. Of course if you make it to 70 your life expectancy increases as well. The calculations part of the equation I always find overrated . The best age to take SS is not so much an actuarial exercise but a personal circumstances question. @@randolphh8005

@mochawonderland 6 ай бұрын

I will collect now. Tomorrow might not happen.

@MrEdwardCollins 5 ай бұрын

Yes, but what are the actual probabilities that for you, "tomorrow won't happen?" For a somewhat healthy 65-year-old woman, there is a 72% chance you will live to be at least 85 years old. There is 54% chance that same woman will live to be 90. Finally, there is a 31% chance that same woman will live to be 95! I'm not about to argue with anyone who wishes to take it early. That's a personal decision. However, the data shows that MOST people will indeed live long enough to "see tomorrow." And many of them will at that time regret taking SS early, since the small checks they receive no longer will cover their growing expenses.

@MrEdwardCollins Ай бұрын

Do you have a plan if tomorrow _does_ come? Will your small SS benefit be enough for you to live on and if not, what other sources of income will you have?

@rickros3677 6 ай бұрын

Why hasn't it been fixed...because the problem is 10 years away...not tomorrow...

@mac5856 5 ай бұрын

If it was just a reduction in the monthly benefits at age 62 but you can make that up if you live long enough and the break even age should be at about 79 i would take it early IF they had a higher cap on the income you can earn, BUT i think its only like 22k a year you can earn and anything over that they take $1 for every $2 you make over that, so if you make 66K a year they would take 22k of soc sec benefits ,correct? PLUS, you would be stuck collecting the lower benefit amount the rest of your life. So unless you can live on what you make from soc sec at 62 or you have retirement savings to help fund what your soc sec benefit shortfall would be then i dont see most people these days collecting early as a good idea.

@SpynCycle57 5 ай бұрын

When you reach Full Retirement Age your benefit amount is recalculated and any of the income penalty is taken into account, potentially raising your benefit amount.

@rickynorris1694 6 ай бұрын

I will have a pension, so I will probably get on SS at 62 or 63.

@websterhays8352 6 ай бұрын

62 or 63??? Wait until you are 70. Do not opt for a puny check!

@marty64thornton 5 ай бұрын

I'm taking mine at 62 I'm not promised tomorrow

@juangarcia8828 4 ай бұрын

I just moved to America. I'm 67. Am I eligible to collect a Federal welfare check?

@MrEdwardCollins Ай бұрын

You're taking it early because you are not promised tomorrow. Okay, fine. But do you have a plan if tomorrow _does_ come? Tomorrow will indeed come for most of us. For example, 46% of women who are currently 65 years old will live to be 90! Will your small SS benefit be enough to cover expenses and if not, do you have another plan? Other sources of revenue? Another question... if you are on a game show and the game show host offers you $1,000 today... or $25,000 a year from now... I assume you will take the $1,000 now... because you according to you, you might not be around "tomorrow." Is that correct? If you wait until age 67 to collect, the monthly amount you will receive is *42.86%* more than the amount you would have received at age 62. Obviously that's not a large enough percentage for you. Okay, that's fine too. No problem. But how large does it have to be for you to delay? 60%? 70%?

@vikotto 18 күн бұрын

Can’t tell if your 0’s are 6’s or vis versa.

@marcopignone9386 6 ай бұрын

Would be interesting to see cohort life expectancy for persons in their 60s with no obesity, diabetes, heart disease or history of cancer. I suspect most people in that cohort should wait until 70.

@tammyjohnson6822 6 ай бұрын

If retiring at 62, how do you get health insurance until qualifying for Medicare? The marketplace is really expensive for me. Is there a way to use your SS payment as your income instead of your previous, pre-retirement income?

@leehamilton4459 5 ай бұрын

If your income is low, they offer subsidies through the marketplace. Its discounted insurance.

@SpynCycle57 5 ай бұрын

When applying through the marketplace, you input your expected income for the upcoming year, which will include Social Security benefits. At tax filing time, the actual numbers are used and you either get a refund of the unused credits or have to pay back the excess credit received, as part of your income taxes.

@KentAndrewLang1967 5 ай бұрын

Someone at work told me if your income is under $30k you might be able to get Obamacare for free. Works great if you live in a low income state.

@DanStratocaster1 10 сағат бұрын

Health Insurance. That’s the major worry.

@SpynCycle57 5 ай бұрын

Something I don't see mentioned anywhere. If you didn't have a good income until later in life, by waiting until age 70 instead of 62 those 8 higher income years could replace some of the low income earlier years, thus raising the 35 year average, resulting in a higher benefit.

@KentAndrewLang1967 5 ай бұрын

Yes. But once you hit age 60 those previous years of earnings are adjusted for inflation by social security at that current rate.

@SpynCycle57 5 ай бұрын

@@KentAndrewLang1967 A year of zero wages is still a year of zero wages after adjusting for inflation.

@MrEdwardCollins Ай бұрын

Yes, but the amount you receive from SS each month is based upon your top 35 years of lifetime _indexed_ earnings. (Indexed earnings... the amount is adjusted for inflation.)

@SpynCycle57 Ай бұрын

@@MrEdwardCollins And I repeat "A year of zero wages is still a year of zero wages after adjusting for inflation."

@theprotos69 6 ай бұрын

what if you are normal...no portfolio!!!

@KentAndrewLang1967 5 ай бұрын

Exactly!

@jillharling 25 күн бұрын

One size does not fit all…… some have saved. Some have not……

@seedabeauty Ай бұрын

The elephant in the room that NO one ever talks about is: if you take SSA at 62, you can work if you choose to. Only, at your speed, your leisure, your say-so.

@MencyNars 4 ай бұрын

can you file at 62 even if you are still working or do you have to retire before or at age 62 to file SS?

@MrEdwardCollins Ай бұрын

You can file as early as 62 and yes you can continue to work. However, If you are younger than full retirement age and earn more than the _yearly earnings limit_, your benefit amount will be reduced. Again, the limit only applies if you claim Social Security before reaching your full retirement age.

@BillyO8828 7 ай бұрын

There is no "best age". There might be a best age for someone in "your situation", but there is no standard BEST AGE. If you think you have a 30% or greater chance of running out of money, work another year or two....unless you absolutely hate your job.

@nunuvyurbiz123 7 ай бұрын

What happens if the sole earner starts to collect, then dies, before the spouse turns 62? Does the spouse get nothing until turning 62?

@markbernhardt6281 7 ай бұрын

They get a job

@randolphh8005 7 ай бұрын

You can get a reduced survivor benefit starting at 60

@Michelle_McKenzie 6 ай бұрын

Why are we okay with them stealing our money. If we've paid in and have 1.5 million why if I die does my spouse have to choose between taking their SSI or mine. BOTH should legally be theirs and they should be able to take both. Then to tell us that SSI is insolvent after people have been dying early and the government has been pocketing this money for decades is crazy!! We need to stand up and protest.

@timcoker1428 6 ай бұрын

I retired @58, started SS@ 62....no regrets. I'm a little confused. If a person waits till 70 years old to draw more social security, does he have to work till he's 70?????

@william-fla-321 6 ай бұрын

You don’t have to work until 70, you just postpone filing until 70.

@rayosullivan4398 5 ай бұрын

I would say your more than a little confused.

@MrEdwardCollins 5 ай бұрын

@ timcoker1428 Yes, you have no regrets now. That's understandable. And you also might not have any regrets for the next 16 years or so. The problem might come when you are in your mid to upper 80s... and the small SS checks you receive no longer cover your expenses. A person receiving $2,056 a month at age 62, for example, will receive $3,579 a month at age 70. (Both figures are without the yearly COLA increases, of course.) That's a substantial increase. Of course, there are valid reasons for filing early. For example, you might need the money now, to live on.

@timcoker1428 5 ай бұрын

@@MrEdwardCollins Lucky me, I have other means than SS. SS is a very small amount of my monthly income. I put most of my SS in a savings plan for my Grandson. Like I said,no regrets 😊😊😊😊😊

@JohnJohn-wr1jo 6 ай бұрын

Thanks, one of the best presentations Ive seen on this subject. It reinforces the decision I made at 62 which was to wait til 70. To me it made sense to wait for the reasons u outlined. Mainly generational longevity on both sides of my family. My overall health and activity level. Spousal benefit. I had also considered taking at 62 and investing 100% but two things were concerning. The volatility of the market over those 8 years vs a guaranteed 8% increase annually. Other reason was advice from my portfolio planner and my tax advisor. Both told me that they rarely see clients who are able to stick to this strategy or worse dont do as well on the investment side and would have been better waiting. On the flip side I have seen to many seniors regret taking it at 62 and run short every month

@SLG52 5 ай бұрын

If you cannot make over 8% in the market...you are not trying. Go to fidelity... look at mutual funds and sort by returns over the last 10 year. Make and account and split it beteen the top 5 to 8 mutual funds making over 10% the last ten years. Forget about it...except 1 day a year. On that day log in and get rid of the lowest return because it could have done better. Get rid of the highest return because it is unlikely to happen again. (sell and buy other mutual funds you do not already own with +10% annual the last 10 years) Repeat every year. I have...and I have made WAY more then 8%. It isn't that difficult. You don't need to know what stocks to invest in...just the bigger number the better.

@eugenedavis6792 Ай бұрын

I recently retired just 5, four months before this year at the age of 61, I turn 62 I'm applying for Social Security. Why should wait 5 to 10 more year where as I would find a part time job until I turn 65; no f*cking way; I've been working since 1 was 17 years old and that;s enough for me to enjou my life to the fullfist.

@rejo3920 5 ай бұрын

Medical at 62yo?

@billhrsn 5 ай бұрын

The only benefit to filing at 62 is if you stopped working or were unable to work. Otherwise you would not receive the benefit because of the income rule. I’d rather have the larger income than the benefit.

@Chuck_Hooks 2 ай бұрын

So glad I'm not dumb enough to try to live on $1600 month.

@tomy5868 6 ай бұрын

if i work till 63.5 and i take SS at 62 does the amount change once i am no longer working or does it stay the same?

@ericlee2931 6 ай бұрын

Stays the same for life

@SpynCycle57 5 ай бұрын

If you start collecting before FRA, then you are penalized with a $1 reduction in benefits for every $2 you earn above $22,320 per year.

@ericlee2931 5 ай бұрын

@@SpynCycle57 Agree, if he draws SSI at 62 and works after 62, he will have to give back the amount of money you described. This "give back" period will end at age. 67... Meanwhile, he has permanently locked into the absolute minimum SSI check for the rest of life. It will never increase whether he works or not.

@SpynCycle57 5 ай бұрын

@@ericlee2931 Plus while earning an income and drawing a SS check, some of the benefit could be subject to taxes.

@prairiemark4084 6 ай бұрын

Another benefit in waiting to draw Social Security is that Social Security is divorce proof. If you delay drawing your S.S. and draw out of your IRA or other accounts from age 65 to 70 and a divorce occurs, then the increase in Social Security payments is locked in under your name. You will not have to share it with the ex if a divorce occurs. And added to that the money you drew out of your IRA to fund the years 65-70 while waiting to draw at 70 will not be on the table for property division. They were used up buying you coffee with the boys and hunting trips! This double edged advantage can be significant if the worst happens. You never know what will happen if you married an ONAC (Ornery North American Chick!)

@maxpower9848 5 ай бұрын

In California if you were married 10 years she gets off your social security. The good news is it comes out of a slush fund and doesn't physically come out of the money that you draw.

@braytoncornell9678 7 ай бұрын

I’m closing in on retirement, and I'd love to move from Minnesota to a warmer climate, but home prices are ridiculous now.. do I look at other assets and wait for housing crash, or go ahead with house purchase anyways?

@william-fla-321 6 ай бұрын

Florida has a a homeowners insurance issue going on heretofore and rising property taxes, so it’s not as attractive as in the past.

@dennistyler9852 6 ай бұрын

I rather rent for 3-6 months in Florida and return to Maine to our small house.

@4everyoung16 5 ай бұрын

Or live like a queen/king overseas. Eg. Cambodia, Thailand, vietnam, and so on.

@SpynCycle57 5 ай бұрын

If house prices are high everywhere, you pay more for the new house, but you get more for your old house. If house prices are low everywhere, you pay less for the new house, but you get less for the old house. YMMV.

@emerald640 5 ай бұрын

The Government has a lousy history as an investor . If you allow them to invest in higher producing assets you will find them investing in favorite investments such as cylindra , one of Obamas favorites that had a no claw back provision in the loan agreement. Shortly thereafter they went BK and the government lost 100% of the loan.

@carlharper557 6 ай бұрын

They should be on ss

@Thedragoncalls 3 ай бұрын

I bailed at 62. Just sick of the rat race. I've made more money and have more "stuff" 6 years later than ever. Been able to focus on me and not working for 'da man!