TAKE Social Security EARLY!! || DO IT!
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- Опубліковано 28 вер 2024
- Take Your Social Security Benefits EARLY!!
🎉 Ready to learn why claiming your Social Security benefits early might be a game-changer? 🎉
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In this video, we dive deep into the pros and cons of claiming your Social Security benefits ahead of schedule. 💼💰 From financial freedom to potential pitfalls, we cover it all!
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I did it at 62. I did the math and the decision was fairly easy.
If it wasn’t the best thing to do for us, the government wouldn’t be trying to bribe us to wait.
Thanks for sharing
I’m planning on 62,who the heck guarantees we’re living the of tomorrow,I’m not of this world anyway,hallelujah,Glory to God.
Amen 🙏
My husband retired last year at 62 and went from working full time to part-time. I'm a bit younger so we have health insurance through my job. It's been the best thing for us. We do have our home paid off. Both of us lost parents at younger ages(60s) so it changes our perspective on working until 65 or 67. We want some good years of working less. I plan to start drawing as soon as i can too. He gets a lot of guff from acquaintances because he went part time. We figure they are just jealous.😉
Thanks for sharing!
I'm a heavy equipment mechanic I Age 60 it's hard on the body. I plan on doing the same 😊
I’m 63 and have already worked longer than I wanted to. I’m quitting this year and will start SS in January 2025.
Awesome!
Me too.
Glad to hear someone say everyone’s situation is different and taking Social Security is dependent on their respective life situations, not a maximum payout nor number of payments made.
Exactly Bruce!
My thoughts about collecting early is if you live a long time thinking you could have collected more waiting to start later. Think if you end up in a nursing home at 80 kicking yourself in the butt. 😮 Yeah you lived long, but where?
@@wheelie642 Your chances of ending up in a nursing home are high no matter what you do, unless you have exceptionally solicitous family, and often not even then.
My wife and I worked with Drew on our EKG and we’re so thankful we did .What you see is really how he is when you meet with him and his family at pearl wealth as he calls them. God bless
Thank you so much!!
Thank you. I know too many people who died before retirement so I’m taking it at 62.
I did some "unscientific" calculations to compare taking it at age 62 and 67. I used the social security website to get the benefit amounts and assumed the same earnings in either case and also assumed I'd retire at age 62 and start taking social security immediately or wait 5 years. If I start taking it at age 62, I would come out ahead (relative to the benefits starting at age 67) up until age 78. Average life expectancy for a man in the US is 76.3 years, so seems like a no brainer to me to start collecting it at age 62. You also get more time to enjoy it.
Awesome Math!
If a man is 65 then his life expectancy is 82. The 76 you mention is from birth.
Yes, the current life expectancy is around 76 years old. That age of 76, however, is for someone _who is born today._ That's actually not relevant. For someone who has _already reached_ the age of 62, they can now expect to live longer than age 76.
The average 62-year-old male will live another 19 years. The average 62-year-old female will live another 22 years.
Note that for the female, this is five full years past her break-even age of 78 years and 8 months.
I ran the math and I would break even at 78.
Took SS with a pension at 62. Debt free.
Live within your means. No regrets.
FINALLY at the very end you admit that everyone's situation is different, Social Security is not a one size fits all. I took SS at FRA 4 years ago which was 66 and it was the right decision for me but in my early 60's was time to build up my investments and savings as I had no debt and I actually had a great job. I enjoyed AND I was at the highest pay for my career so it was easy to put away extra money. My wife finally goes out at 70 this year and she's been on phased retirement working 15 hours a week so she gets out of the house and she has a decent pension. I count all our blessings and hope to leave our kids a decent inheritance.
Thank you so much for sharing! Great comment!
could have swore he said it 'depends' at :36 in - but yeah - you just need to be educated on it and then decide for yourself
Well this is ok for those with $550k saved but a lot of people have far less including boomers. For those with low or no savings, the case could be made to wait at least until 65 when Medicare kicks in. Better yet, wait to take SS until Full Retirement Age (66-67). The annual growth by waiting is guaranteed 7-8% annual for each year you do not take it. That is an excellent investment return, especially considering most people including me have little or no investment success.
Yes!
Claiming SS can be a complicated process with a lot of moving parts:
What other resources do I we have?
How is my health?
How will it affect my/our taxes?
What about my spouse after I croak?
But often it's just, "I'm sooo done with work, lemme outta here..."
Totally agree
I took it at 63, excellent decision I made…🙌
Nice!
I'm going for it - will be 63 in 2months - will continue to work full time - but want to pay my debts down - and perhaps dump some 4% return $$$... Thank you for sharing this!
You can do it!
Problem is you will have a lot of your social security withheld if you earn much at all -- I think it's 19k as of this year. For every dollar earned, $2 of social security is withheld. "Supposedly" (I'm not a big fan of promises) you will eventually get it back, but if you have to wait until whenever eventually actually is, there's far less point in getting your SS early in the first place. It's one thing to cut your SS payment down if you're getting the full benefit while working ... but you don't.
Thank goodness for the VA. I really truly wish we'd finally join the rest of the first world and offer that same care for everyone.
Thank you for your service!
Yes, it's time for us to grow up as a nation and act like the first-world nation we supposedly are.
I looked at the breakeven amount being more from that point on and devided it by the months i would have collected and it's peanuts to wait, especially if you invest a little bit of it and or the dollar is declining for all those years also not to mention nobody knows how long they will live, my conclusion is to collect at 62 and enjoy your last few years my brother died at 63 my sister at 37 I'm 62 in four months from now and i need the money to finish my house build a way better investment than letting the gov. Take it p.s. i am having the time of my life no more job stress no more alarm clock, just have great social connections and enjoy yahoo
Thanks for sharing!!
I took mine at 69 1/2. That was the best for me. Do your own calculations based on your own situation.
Yes!
People, please consider the time-value of money when considering your “break-even” point. If you can earn a good return, or pay down high-interest debt with it, then taking it early makes even more sense.
True
I will take it starting in January 2025 because I can, I already have the credits, and many of my contemporary friends are dying way too young.
I will be working part-time because thank God I enjoy good health at the moment. Is a no-brainer. Thank you for your advice. God bless you.
I retired and will collect at 62,i have no mortgage nor car payment, my husband
and i decided with our sss is enough for our monthly expenses and out retirement accounts will be use as needed only
Thanks for sharing!
Yes, take SS at 62!!!! Makes total sense financially.
Thanks for watching!
It makes sense to you. It’s not a good advice for everybody.
@@KMarik Yes it was to me. VERY good choice. Thanks
It depends on your situation if you have no retirement savings, or pension you might want to wait until 67 this way you can pay off the house and other debt and collect your SS at 67 plus you would get Medicare at 65 if you retire at 62 there are only so many hours you can work a week plus you would still have to pay for healthcare you won’t receive Medicare until 65
@@2119rocky Agreed. I prepared for retirement since I graduated from college. I had my 401K contribution taken out of my second paycheck. 34 years later at same company retired at 57.
I retired at 61 from the govt and started drawing from SS at 62. I am diabetic and you never know what can happen..
True!
I have had 2 TKR with the 29 years & 11 Months with the USPS as a Letter Carrier and just recently retired 6 months and now getting my Pension. I have also done 19 1/2 year in the Military and also getting a pension as well and next month Sept '24 I will apply for Social Security before I turn 62 this November '24.
Awesome!
Why I make good money and work a few hours a week in a job I enjoy so there is no reason to retire early. I can take time off when ever I want for traveling... 124% at 70 sounds better.... And I am debt free.... And working is good for your health....
Thanks for sharing!
You do not work a hard physical job. Some can not keep working past 62
Stress and frustration aren’t good for my health. Kissing the job goodbye this year.
Time is not a given… memento mori.
@@alejandrobustamante7964 But working gives a person purpose as well...
A dollar today is worth more than a dollar tomorrow.
Exactly!
Not really
Largely true. However, any saved $$ should be invested, placed in a high yield savings account, or redeemed for precious metals. My mother is a saver & puts her dollars in a safe. Keep telling her there’s better options but she just like having those fiat dollars at the ready. 😮
@@MrCem1016 Mine too. Keeps $30k in checking account "just in case." I tell her how much the goofy official CPI inflation numbers say she's losing per year and that doesn't faze her. Tell her how much she's losing according to sites like Truflation and it wrinkles her brow, but just for a moment. Since she's retired, she can never get that money back.
Much more, especially since the official CPI numbers are nonsense.
I reason I am not or did take it at 62 is because I want to earn more than 22k a year. If I wait until my full retirement age I can earn as much as I want without Social Security ding me.
Exactly!
But you would get it back ss would recalculate at your fra
No guarantees on SSI after this election. Take the $ ASAP!!! Tomorrow is not guaranteed!!!
True
Single person here. I have a pension and health insurance from a hazardous duty job. But I also have health issues which make me question how long I will live due to the stressful work. Haven't worked since 2009 and have lived off my retirement money. If I get SS at age 63 I will get $1880 and change per month but 85% of that will be taxed because I make over 50K per yr from pension. What does someone like me do then? No one seems to address this type of person. Taking early I can pay off my house in 2 years. I wish I could work but can't do it after such a stressful career. So I've lived off my retirement since 2009. I can still save money for house fixes too. I don't live luxuriously and am cognizant of saving as much as possible for any emergency. I have health insurance until age 65 where it will switch over to Medicare when I sign up, and have my other insurance as secondary. So I am covered there. Should I take at 63, 67 or 70? I am 62 1/2 years old right now.
Love this video! Thanks for doing this. You’re awesome, Drew! Glad to have you as my financial advisor.
Thank you so much for watching!!
The math on the age 62 side seems off. Maybe you can explain how their investment went up from age 60 to 62.
The 4% return offset the inflation adjusted spending for 2 years. I haven't done the math, but that probably would not be the case at age 63.
Yes!
The rate of return cannot cover/offset the spending. I think there's just a couple of numbers transposed in the yr 62 balance -- $505,527, instead of $550,527.
Thanks for the info, Drew. Your videos are priceless! I struggle with the question and you just made taking SS @62 more realistic!
Glad it was helpful!!
How much is your health insurance going to cost per month until you turn 65 and become eligible for Medicare?
Mine would be zero, I’m a New York municipal employee.@@calvinreichelderfer7989
Count in dental care costs, too. Implants and crowns get expensive!
No doubt. Grandma just got an estimate for 10k worth of dental...crazy!
Unless my life projections changed RADICALLY! There is no way I’m taking SS at 62.
I’m going to draw down the 401k so I don’t pay higher taxes at 70. I’m already collecting a pension of 3k at 61. SS will be 3k at 70.
Thanks for commenting and sharing!
The erosion rate of the dollar due to government debt really demands 62 years old. The cost of living adjustment only helps a little.
Do you trust the government to control spending? The probability of getting paid at 62 is greater than at age 70.
Thanks for commenting!
Excellent conservative approach- Thanks!
Glad you liked it!
Everyone’s different and I definitely am going to take it later because that is the only secure income. I will have my million dollars in brokerage accounts can go up and down Social Security will remain constant and if you plan to live over 80 years old, definitely take it later! In the meantime, while I’m not taking Social Security, I am in a zero tax bracket so now I can take money out of my 401(k) without paying taxes on it up to $13,000 and qualify for other things that I would not be able to if I had a verified income Which Social Security is. Think smarter not harder.
Thanks for sharing!
Omg…I love this video! I just subscribe. I was gonna wait until 65 not anymore. I’m gonna collect mine at 62 next year. I’ve been contemplating and I made up my mind. Plus tomorrow is not promised so I might as well start next year.
Btw…greetings from the 🇵🇭. I quit my job at age 53 after a divorced. I had my house built here in the 🇵🇭. I paid cash with everything with the help of the money I got from my divorce. At 59 1/2 I got my pension from my past employer. It’s not much but it goes further here. My social security pension will not be much either because I only worked in Seattle 🇺🇸for 25 yrs however I think I worked in 🇨🇦 for 8 years. Thanks much for this helpful infos. Where are you located in the States?
Thank you so much for watching and subscribing! Our firm is located in Tampa.
Drew is on the money (no pun intended). Claiming SS depends heavily on your situation. My opinion... today, most people will have to work until at least 65 and unfortunately will have to wait to collect SS, because the limit on wages is $22K. For those who have enough to retire, they will have more options.
Thanks for watching!
Why not drop your investments into high yield dividend ETFs with returns of 4%-12%? SCHD OR JEPI or even SVOL will give you enough income in that portfolio without touching your principle. I never see financial planners even consider dividends...
Not a bad idea
The problem I see is take it at 62 I get 2000 a month but working I get 60k a year that will cost me about 10k a year in penalties so I cannot take it early and still work my fairly easy job. You see my predicament
I do see it
That’s not a problem. Continue to work until age 68. Take SS at 67. There is no longer a penalty at 67. That final year of work you can take the SS money and invest it or pay off any debt before retiring at 68. My wife and I make almost $200k a year. If we take SS before 67 we would never see a dime of it and would be locked in at a lower rate.
Better to take ss early to subsidize your living expenses or save it if you don't need it.
How can you have more money in your investments at 62 then 60 even with the 4% ROR if you are taking out money starting at 60? The ROR is only 22 k a year but you are taking 3575 out a month. That isn’t even taking into account inflation. I am so confused
I use future cash flow calculating software BEFORE putting the numbers on the board. Inflation, taxes, and ROR are factored in. Thanks for watching!
@@yourfinancialekg I think numbers were transposed when written on the whiteboard. Maybe it should be 505,527, and not 550,527. This is confusing so many viewers, so please edit the video to correct this.
All these people saying wait you get more money. Taking it at 62, you get more checks and it balances out.
Good point
I come up with $362k not $312k in the 67 example. Start with $550k withdraw $300k over the 7 years which is $250k. Average balance over the 7 years earning 4% interest is $400k or $16k per year times 7 =$112k plus $250k = $362k
Never mind, I didn’t include the 3% per year increase. With that said, the 62 column number is wrong as others have indicated.
Thanks for commenting!
Im goihg to take it early end of 2026. Its a fixed income and if I want to work parttime at home still I can, and, it will help prove monthly earnings for rent when I move with my retired friend/partner. I want to get away frim city living while I'm still physically able to. I want my friend to move bsck home where he was raised before everyone he knew there dies He has been happily retired since age 62-1/2, now 68. We live within our means and the cola increass help with rent increases. And with all the food and ither deliveries these days, and Uber etc, we don't even need a car anymore...Of course, we csn rent one once in a while too.
Error in second example.
First year-
550,000 - (3575 x 12) = 507,100
507,100 x 1.04 = 527384
Second year
527,000-(3575 x 12) = 484,100
484,100 x 1.04= 503,464
You have 550,527
Thanks Johnny!
SS is longevity insurance. If you live a long time you benefit by deferring and will be happy. If you die early you won’t know you didn’t make the right decision.
Yes!
Great Information and Great video ! Thanks
Glad you enjoyed it!
I'm taking it at 62!
Do it!
I got hurt by a drunk driver when I was 56. I had a really good job. I had to take SSDI. People tell me that's a good thing. The problem is, I hurt like hell and was making more money when I was working.
I'm really sorry!
Your math is flawed , how do you have more money at 62 when you are withdrawing more than your investment returns? Using a savings distribution calculator I show you should have $506,261 at 62. Also with that withdrawal rate in the 60-67 scenario your balance at 67 should be $380,334. If you are using a Monte Carlo calculator is has a lot more variables factored in. I did retire at 61 and took SS at 62 to preserve my 401k and using 6-8% returns my money lasted longer by taking SS early.. What calculator are you using?
Software and HP Calc. Thanks!
If that $550,000 was in the market in a safe dividend stock that monthly money is free, and more
Maybe
I bailed out six minutes in. My sister and I are both collecting, she started at 62, I waited until almost 70. She always made more money than me, but my benefit is over $1000. a month higher than hers. And guess whose COLAs are bigger? and guess who paid off his mortgage before retiring? and guess who had 7 more years to pad his nest egg?
You're not comparing apples to apples. Of course if you keep working until 70 and someone else retires at 62 you will have more money. That has nothing to do with this video.
Thanks for watching 6 minutes...
Each person's situation is unique. Glad your's worked out.
But who wants to work until SEVENTY? Time is more valuable than money.
@@rosemarykingpate7832 I was retired for two years and went back to work full time. Retirement was not for me, not yet. I have plenty of time to ride my bike and/or go for a swim before work and I absolutely love my job. I plan on working at least until I'm 74 or 75. I have a coworker in his 80's. I have all the time in the universe.
If you live to 91 and started making more does it really matter devide the extra by 240 months and you didn't make jack
You will end up with $ 474,417 at the age of 62 , assuming exact parameters . The $550,527 is not accurate
My retirement age is 66 and 10 months it's all about retiring at 65 do you think it's a good idea to take your 401K money and pay your mortgage off
Depends on your tax situation
The taxes on my property is only about $200 a year
SS rate increases 8% a year after you turn 62. I'm going to try and stick it out until 70 at least. My full retirement age is 67.
Awesome!
Thank you, very informative. I like u said God bless in d end.
Glad it was helpful!
What about taking it at 33?
Do it!
Thank you so much ❤
You're welcome 😊
Without madical coverage? Most people can't take the chance. It takes 1 serious health occurance to wipe out your savings. That's why I'm waiting for medicare age which is 65. If you can found a free or cheap med. ins.somewhere, I'm all ears.
Good point
I know a super healthy 80 year old who can cycle 90 minutes at 17-18 mph. But that’s all he can do for 3-4 days a week. He literally drinks wine and stares at the wall until the next bike ride. He has no desire to travel and lives off 1700 dollars a month.
Wow
The problem with the calculation is so many don't save. They want the money now...!! Justify taking it early is what many want to hear.
True, saving early is first step!
You can still be a Door greeter. Sweet 😆
It's not like we are going to live that long so might as well pull it
True
Unfortunately I believe my husband has to wait. I'm a homemaker and my spousal support will be really small if he takes early. Unless I'm missing something??
You are spot on. Everyone's situation is different!
Go get a job
@@patde1264 you must be such a nice person
Or you can think of it as your household will be getting Free money from a pool you never directly contributed to. I believe the non-qualified spouse gets half of whatever the qualified spouse gets when he or she decides to collect SS. If other accounts and funds are part of the household scenario, then it might not be a poor choice to collect early. Do your research because there are many factors/rules to consider with these matters. Get several opinions before you decide.
Get a life@@patde1264
I think you unnecessarily disadvantaged the "Delay" model by ignoring the COLA on the delayed social security. You included the effect of inflation (of a very specific assumption of 3% ) for part of the model, and should then have included that exact same 3% assumption into the social security benefits. I believe this would have resulted in the "Delay" model being even further ahead of the "Early" model than what your conclusion was. Anyway, the end result was the opposite of what I assumed your video totle was going to show, as you made the point in this video to DELAY rather than to TAKE EARLY DO IT!!! messaging..... :)
Because Social Security will only be able to pay out 75% of benefits after 2033, I am very conservative in the delay model. Thanks for the comment!
How much does this guy charge?
pearlwealthgroup.com/
I retired at the end of last month at 58 so can't take SS yet!!
Congrats on retirement!
Take it early is a way to get commission on Social Security.
If Social Security would pay me $4,800/month like my employer is paying me...I would take SS early at 64. But they only want to pay me $2,100/month.
The three reasons that Drew suggested ARE NOT choices, but a forced actions:
1. To cover what you want - it is actually to spend it (vacation, a car, a wedding?). I don't know how it is a good one (or bad one). Simply, get money from social security to spend it.
2. A expense you can NOT avoid - again, a force choice
3. Another choice you can NOT avoid - to cover your bills.
So, the suggestions are useless.
Thanks for your opinion!
Take it at 70
Thanks for sharing
Drew, your calculator is broken. 550,527? Really?
Batteries seem to be fine....
@@yourfinancialekg Batteries may be fine, but the math is wrong. at age 62
Taking mine at 62 ! Because my 11yo will then get half my FRA (yes, FRA not 1/2 of what I get at 62) That'll be for 8 years !!! No brainer there :-)
Awesome!
Nobody should insist on people taking SS early ,without knowing their true financial situation. Alot of people that for one reason or another do not have enough money set aside for retirement at all. They don't have 401's, IRA's, Stocks, bonds ,to supplement their income. So encouraging them to be doomed to a life of continuing poverty is the worse advice anyone can give. I know people that thought they were going to be just fine with taking their SS at 62, and they are broke with nothing to do but work until they're dead. Working until their full retirement age will help them more in the long run, then having pocket change in their pocket now. I wish all you financial wizards would shut up and stop trying to convince people into making the worse financial decision of their lives without knowing what their financial health is.,,,
Thanks Philip. That is why we do a COMPREHENSIVE plan in the scenario for an individual. Exactly like you said, make sure it fits them. Thanks for watching!
Who the heck wants to wait till they’re 70! Ughh.
NEVER Touch the principle - live from interest and dividend income - you model destroys the principle -
Not everyone has that possibility plus my model is called holistic financial planning
Can I get a 401k at age 62
If you are working at a job that offers it yes
Take SS early...yeah right...
No board on my chess team for you, Sir.
Oh, might want to fire your barber.
Only took me 0:06 in to bail on this inanity, a record.
Thanks for the comment! Helps the algo 😉
Retirement at 62 is poverty. Work gives meaningful purpose. I'll work to minimum 65 or 67 & keep earning a much bigger salary. If you die, you won't care, if you live, you'll wish you waited
Thanks for sharing!
Time on earth is limited. Working u til 67 for me would interfere with doing things I want to do while I still can. I would argue you will regret working that long if you you didn’t need to
💯
@@deanrotering879The only way you would know you didn't need to is if you die! If you die you won't know it, if you end up living to 90 but you collected a 62 you'd be living in poverty for the last 15 years
@@CoffeeBreakSomewhere no I wouldn’t lol. That’s a ridiculous assumption on your part.
I'm glad this guy not managing my portfolio.
Me too 😂
Do the math. It takes at least ten years to break even. You should of invested your money when you were working. Enjoy life while your healthy.
@llhandpay The break even age is around 80 years old, it doesn't matter what age you start collecting, 79 or 80 will be the break even age....my wife and i did invest wisely, our combined net worth is about 3 million.
Lower monthly benefit BUT the tax free Roth and HSA is growing like a weed as you ignore them and live off Social Security and pension income.
I agree with this guy. I retired at 57. So I waited 5 years to take mine. I planned for retirement right out of college. I worked for vacations, eat good, and retirement. I traveled well while I was younger.
The break even age is ridiculous people, you take it when it’s available. You’re not losing money. The amount is what the amount is at the time if anything take it and invest it if you don’t want it. You’re not gonna be healthy 11 years later at the break even point
True statement
If you wait until age 67 to collect, the monthly amount you will receive will be 42.86% more than the amount you would have received at age 62.
Okay, that percentage is not high enough for you. That's fine. I don't have a problem with that.
But I'm very curious to know how high the percentage would have to be before you _would_ consider delaying your benefits. 50%? 60%?
Alternately, flip the question around. Let's say the system changed and instead of a 30% deduction in benefits for drawing early, at age 62, it was changed to a 40% deduction. Or maybe 50%. Is your attitude still the same? You take what's available? How low would it have to go before you agreed that waiting to get the full amount was the best move?
Where do you draw the line?
You HAVE to consider both the increase percentage you will get by waiting, _and_ the time frame involved. Those two factor must form the entire basis for your decision.
According to your logic, if you were on a game show, for example, and the host offered you $1,000 now... or $25,000 a year from now, or $30,000 or $40,000, you would not hesitate and take the $1,000 now... because that is "what's available." Well, that's not necessarily a smart move.
Finally, your final thought is not true at all. Many individuals are very healthy at the break-even point.
Your logic is flawed@@MrEdwardCollins
@@gtb5216 You spelled flawless wrong.
IMO most people who want SS at 62 are in that situation because they never knew how to, or wanted to, save anything AT ALL. So how would they suddenly invest their new SS income at 62? No, they will spend it like the previous 45 years. Acquaintances of mine I really care for have saved nothing over decades despite employers who offered generous 401k plans, and are so eager to take SS at 62. It almost guarantees a poverty retirement, They really need to consider working until 70 and not taking SS until 70. But it is their money, their choice.
I agree with you! I took mine (or will be this month) early at 62. I did the analysis and if I wait until I am 70 to file, I would not break even until I was 81. According to social security, my life expectancy is 85. Given that, I am not willing to take that bet for 4 years of benefit, especially given the time value of money of those cash flows. For me, a bird in hand is worth two in the bush.
Awesome!
If you live to 81, you will have collected the same amount of money from the Social Security system. But what you will have lost financially is th5 years of regular income from your job. ( 5 years x $50,000/ year) added to what you get from SS.
I agree that you may benefit from not having to work. But the financial advisor was trying to justify retirement only based on financial gain numbers.
@@TheHavocdogby that logic, you’d make more money if you worked until you die and claimed SS at 70 as well.
@@TheHavocdogit's not 'IF' I live to 81 but 'WHAT IF' I live to 81, if I die before breaking even I won't be here to know it but if I live far beyond 81 the money difference will be needed
@@TheHavocdognot to mention The extra money going into a 401k.. hey, if someone can afford it great. I'm in my 50s and I'd go now if I could afford it but those last working years will be beneficial for my wife and I
I would retire at 62. no one know how long we are going to live. But everyone is different. Thank you drew I appreciate your video
Thank you for watching!!
I say take at,. why wait until your 65. or 70's or even work past 62, god forbid you get hurt on your job.
Start with how long your parents lived and then decide.
People…pay off your homes BEFORE retiring! Work your tails off to become free of consumer debt…it will make your decision far easier if you have nothing but living expenses and putting away $$ for taxes, insurance, repairs on your homes. My mom passed away with a balance owed on her very modest home…she was 86 years old. Folks…please pay those homes off. Life will be far easier.
Good advice!
Depends. If you have a low interest rate mortgage but are earning on average more than that rate, you're better off having that low-interest mortgage.
@@MarcIverson I respect your position…however, I’d prefer to have zero risk with a paid for home should my finances/investments tank. I have no
regrets being free of consumer debt.
Not for us with 2.625% mortgages and already living in a retirement community when house prices were half what they were just 6 years ago. You still have to pay property taxes and home insurance.
@@MarcIverson Yeah…because nothing screams “security” like having a monthly mortgage payment. 🙄
The numbers on the 62 yr old column dont seem to add up to me. How do you pull out 42k a year with a rate of return of 4% for 2 years and end up with more money than you started with? 550k with 4% RoR = 22k year.
That was my first thought as well. I would love to see the math on that...
I think $550,527 should be $505,527....or something closer to that.....
I am confused as well. Don’t CFPs have software that do these calculations?
Yes we do have software and that is what was used for the whiteboard calculations. Thank you so very much for all the comments and watching! The algorithm thanks you!
@@yourfinancialekggreat. How did the software come up with those numbers?
If you take SS at 62 vs 70 you break even at 79 with no investing ---if you invest 6% in both scenarios you break even at 91--money is fungible so the spending in your example and the starting balance don't need to be introduced to make your point-- I have heard many channels like this that also comment on IRA conversions and taking SS as late as possible-- Take SS as soon as you can after you stop working and don't do IRA conversions unless you have a good reason
Some barriers to think about are 1) Your social security is not enough to survive on. 2) You still have a mortgage to pay. 3) You will have no health insurance if you leave your job (Medicare does not kick in until 65). Social Security caps what you can make in a year so they will stop paying you if you go over that amount. $22,300.00 is the earnings limit currently. Just throwing this out there. I would love to retire but cannot afford health insurance, paying off my house, the reduction in income.
Thanks for sharing!
Yeah, unless you can pay for your OWN healthcare? You CAN'T retire early 😢@@yourfinancialekg
Excellent points. I'm in roughly the same position. Social security would barely cover my expenses, but those expenses could rise(healthcare costs certain to rise with age), and I would have no health insurance. I'll have to keep working, but if I tried collecting SS at the same time, the govt. would cut my check down considerably. Btw I think it's at 67 that full Medicare kicks in now.
$22,300 = Medicaid
@@duckling4393 I don't think you will qualify for it if you are getting SS and working.
The faster you get your money the better off you will be. Most people don't live till 67 and that is the plan they have. Keep you off the pay roll of retirement. We'll like you said for a very good reasons most take retirement early. And most do not have the luxury of a other funds. Thinking of age 64 to start these funds for retirement SSA collection..! Thank you for your advice Sr.
Thank you so much for watching!
I thought about waitning to take it at 67 but realized I would be pulling funds from my portfolio for 5 years if I did that so the math just doesn't work out to justify the opportunity costs to my portfolio.
Awesome job doing the math!
Great video, still unsure what to do myself. Retiring end of this year at 63 1/2 will have a pension of about 3100.00 per month. ( Has a guaranteed min 1 percent increase per year) Spouse is year older and took SS at 62 which only 1k month. Spouse family history no one has made it past 86 I guess I should have you look at this for me.
Let’s do it Sue!
Im 57, and could get $3500 a month now with free health insurance, trying to decide now.
Money at risk in the market will not have a linear decline. The markets could go up fast or down fast over time. Also, there could be unexpected high expenses as your journey comes to a close. The most important thing to consider is time. Time is a commodity that can never be replenished. Retiaries can find part time jobs or make money on line to fill any gaps. 62-63 is best if you can do it.
I used to be the guy who thought I’d take SS at 67 or 70. However, I plan to move overseas and delay getting married and having a kid until I’m at retired. In my case, it makes perfect sense to start taking it at 62. I’ll live like a king overseas even taking SS earlier on. My future wife will be 30-40 years years younger than me. I’d like to see my child reach at least 21 before I’m old and dead.
I would imagine your kid would like to have you around longer? Or maybe not....😅
Are you my brother, Greg????😂
WoW you remind me of my ex husband.
Problem is, your child will likely be disabled due to your old sperm...😢
I plan on it ,tomorrow is not guaranteed
Boom
And yet tomorrow will come... for the average 62-year-old.
The average 62-year-old male will live another 19 years. The average 62-year-old female will live another 22 years. (You can verify these figures with any of those Actuarial Life Tables. There's one at the SS website.)
The break-even point for someone filing at 67 vs 62, is 78 years and 8 months. Thus, the average 62-year-old female will live a full five years longer than her break-even point.
Hopefully you have a plan in place when and if "tomorrow does come." Your plan, of course, will apparently include your small, reduced SS check.
Love this video Drew , finally someone willing to say it’s ok to take SS to pay for your wants , I turn 62 later this year and it will make a huge difference for the wants …
Same with me
Drew is right. However, in my situation, I elected not to take SS yet because I would be limited to $22K per year. My job is fun and easy and I'm not ready to give that all up yet. I only work part time and I use my pay to fund my wants, which does a better job than $2K from SS.
Yes Mitch!!
If my husband and i waited till 67 to collect 85% of our SS would be taxable with our other income.
We took it at 62 and none of our SS is taxable.
Awesome!
Everyone's situation is different
True
Why are you down to zero dollars in the second scenario? If you have a ROTH IRA, there is no RMD. You can leave money in there for as long as you want. You can live on social security, pension (if you have it), and withdraw each year from your Traditional IRA (leaving the ROTH alone until you absolutely need it).
I agree. Later in life, I'd much rather have the peace of mind of a larger portfolio than a few hundred dollars more per month in a Social Security check.