My dad reached age 62 and died at age 74. His brother reached age 62 and died at 63. So the track record for men in my family isn't good. I reached age 62 and took Social Security. Now...here's the thing - my job situation was so stressful that had I stayed, I might not have made it to age 63...I honestly think it would have killed me, the stress was that bad. I retired two and a half years ago and life has never been better. You cannot put a price on that.
I’m in a similar work situation, but my family’s track record on longevity isn’t in favor of early retirement. 108; 102, 98, 95, and so forth. Even those born in the late 1800s lived a long time.
Exactly what my problem was. I took my retirement benefits at 62 and much happier. Since I live outside USA Iam not subject to state tax laws. Life is more important than a few hundred dollars a month
Thank you for your story, I was in the same boat. I lost about $3000 a month in retirement because I had not stayed another 6 years, but I would have been a mess. I balanced how our current retirement income would be, and we really didn't see a change in our lifestyle. I told my corrupt California government employer to take their job and shove it. I left a $108,000 a year job to be stress free and live my life. I occasionally text my co-workers, and they say things have gotten worse. I guess I made the right choice. BTW, my father had passed away at age 47, so time might not have been on my side.
Schmidt's math is wrong....if your FRA SS payment is $1,789, then your early SS payment at 62 will be $1,252 NOT $1,189. SS works like mathematical precision and collecting 5 years early will reduce your benefits 30% or TO 70% of that at FRA. I'm not sure if he deliberately does this to make taking SS early less attractive as he often cites waiting till 70 to collect SS as "conventional wisdom".....which it's not! HE likely believes in this because he often shares that he feels people will live much longer than they will....and those who delay will lose on their gamble. I too was an accountant in my career and delaying was never consider "conventional wisdom" among my peers....too many drawbacks in doing so.
Like was stated, one luxury none of us have is time. I’ve worked since I was 15. I will be 62 in 2023. I’m going to retire early. I probably won’t feel as good at 67 as I do today . I’m tired of being a slave! Holy Schmitt!
I retired at age 63, may be getting less than retiring at age 67, but the pure enjoyment of leaving the stress of working for corporate is well worth the little bit of difference, simply pure peace of mind and happiness!
I quit at 62 and would never go back but I'm thinking about paying the SS back and waiting because I see now I don't need the money to live on and I would get quite a bit more later. I need to talk to someone and figure out what I should do.
@@grannygoes7882 Good to hear, I would suggest seeing your accountant for advice, they know all the ins and outs of SS and should be able to build a spread sheet showing your numbers now and into the future, enjoy your retirement, the best gift one can do for themselves as my dad once said, cheers!
@@grannygoes7882 Not a good idea to give it back. If you stop you do not get the cola increase every year for inflation when you're not drawing. Also what about the 23% cut that they are projecting 11years from now? Take all the money you can from them now. If you don't need the money , buy the inflation adjusted I series savings bonds paying 7%.
I turned 62 in October. All 4 of my grandparents did not make it past 65. My mother made it to 71; my father made it to 78 (after 20 years of Alzheimer's); my only sibling died at 64. Who wants to convince me to not apply for Social Security now and wait until I'm 67 or 70?
A lot of it depends on lifestyle. My brother in law took his SS early because his father and all his brothers died in their sixties. He's eighty and going strong because he eats a healthy diet and exercises regularly
What these so called experts never mention is that if you wait until you are 70 to take SS instead of 62, it will take you 13 years to makeup the money you could have been earning and investing and playing with. That brings you to 83. Take your SS as early as you can folks. Oh, and remember, it's not a benefit. It's your money.
@@bryanhauschild4376 It's up to you. Can you retire? Meaning, are you debt free? Do you have enough savings? Do you want to retire? If you want to keep working, then keep working. Of course you could still take your SS and just pay the penalty every year until you retire. I chose to retire at 58. Life has never been so good.
@@danbouchard6780 need to keep working. Still have two kids to put thru college. That begs another question. If I retire will it help with getting college loans and grants if I have lower income?
I love your videos. Very direct and to the point, no BS. I wish you were my financial advisor! I don’t want someone who is focused on judging on what we SHOULD HAVE AND SHOULD NOT have done. I want someone who can simply tell us what we need to do and how to do it. Thanks for all the great information.
The thing that makes retirement at 62 a problem for me is getting health insurance. I'm 62 and the earliest I feel I can retire is 65 in order to be eligible for Medicare.
I pay $1114.50 per month as a single person. I never thought I would say this, but my 65th birthday is approaching & I am happy as hell to apply for Medicare, which I am in the process of doing. I only have 1.5 months of regular payments then it's Medicare for me!! These high payments happened because of Obamacare.
@@RG-hf4et That's a bummer, sorry to hear that. I have heard the ACA policies are very cheap for those, for example, who are not drawing any income, perhaps living off a cash bucket for a few years prior to drawing SS.
@@RG-hf4et You can't be serious? Do some research heck even the comment below yours is 100% accurate. Now if your income levels are high than well hey you've lived a good life and if not trust me there are avenues you should be exploring to make it happen. The info is out there it just takes time
I retired at 62. As Schmidt states frequently in his videos, it is a constant check of your resources and how you manage them that matters. There is no magic date or savings amount, it is all up to the individual.
If you don't collect at 62 and wait till 67, that's 60 months you didn't collect Say one was going to get 1000$ a month at 62 and 1500$ a month at 67 So that's 60000$ one didn't collect Starting at 67 it would take 10 years (1500$ -1000=500 a month difference) to make up the 60000 one didn't collect between 62+67 So at 78 you would "technically" start losing money Who knows if you're going to live until 78 Even if you do, wouldn't you prefer to have the money when you're younger and can enjoy it??
I retired last year at 62, received my first check 01/09/2021,had a heart attack 01/17/2021. Doing well now, but you can't ever tell what might happen.
The only way you can know for sure what's best for you is if you know, in advance, the date of your death. Let's just assume at this point you don't have that information. So lets look at family history and guess. Anybody who tells you it's a mistake to take your Social Security at age 62 is not telling you the truth because they don't know when you are going to die either. Everybody points to the higher amount you receive per month by waiting. What they don't seem to factor in is the 4 extra years of payments that you get when you take the money early. Do the math. Figure out what your "break even age" is and then decide. By that I mean, how old will you be when the higher amount you got by waiting catches up with the lower amount you would get by taking the money early. You don't start making more money until that date. For me it was 79 years 8 months. So I had to ask myself one question. Do I want 4 more years of retirement, or more money when I am almost 80? Everybody worries about the money, but there something at play here that is far more valuable than money. It's time. I am now 67 and I have been retired for almost 5 years. If you are worried about money then you need to know this. It matters more how much you owe than it does how much you have. Pick your date and set your goal to be debt free by that date. The freedom that being debt free brings will pretty much let you forget about money. What would you do to get 4 more years of not working and what is that worth to you? That's the real question you need to be asking.
Very well said! Having watched my parents live frugally my dad died with a net worth of greater than $1,000,000 and leave it to my mother who died seven months later. Before her death with her health failing she posed the question, “ what good does my money do me?” People act like an extra $1,000 a month in our last years will be life changing, from my personal experience of watching my parents as well as being a 53 year old widower who does less and less I just don’t see it. At this point of my life I have no needs and very little wants and the ones I do have can’t be bought. Most worry about dying, I lay awake at night scared to death I’ll outlive my health.
Interesting video. I'm a CPA also, and I retired at age 59. The additional $$$ from SSI between age 62 and 67 was not worth the hassle of working that additional time. Yes, the math makes you more $$$, but as your quality of life decreases based on age, you may bee working yourself to the grave. Then you get zero.
Its wrong to make working people give money back.we should hang these politicians that took from our s s system .they was supposed to be working for us
You have to also look at the health benefits of retiring. I went from sleeping 6.5 hours a night to 8-9 hours. I'm feeling a lot more alert and not having to take naps. I wake up when I want to, and don't worry about all the deadlines and suspenses. Life is so much more relaxing, and I get the see the grandkids more often. To tell the truth, I never invested my money which I should have. But my plan was to retire from as many jobs as I could. I currently have a military, State employment, Social Security, and a private employment retirement. I figure I only have 30 years left, I might as well enjoy it.
@@bentnickel7487 well the caliber of teaching has decreased significantly over the years. I had very invested, highly interesting teachers who actually taught not switched on videos and sat there doing nothing. I think it is tragic what passes as "education" now.
As a retired teacher myself, I can attest that our plate, in 2021, is full. Educators cannot include every aspect of life in lessons. Families must take responsibility for either introducing or supporting topics covered in class. Please stop passing the buck so that "teachers can deal with that."
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
It is a big deal. Too bad Wolf Blitzer buffalo'd the public in successfully attacking Ron Pauls short but decent explanation of how charity medicine used to work, using a masterful misdirection during a presidential nominee debate many moons ago: "what do you want them to do...die?" Nobody on the stage caught what happened: health insurance replaced health care in that one snide rhetorical question, and Wolf skated away. So much for Newt being the smartest man in the room. Fast forward to the aftermath of the Roberts court decision [silently using HIPAA as a guidepost instead of the constitution] and... alot have insurance still, but with premiums doubled [or worse] in exchange for extra high deductibles, alot less have actual health care - and the slide hasn't picked up full steam yet. It will in the next market crash.
For me, waiting a few extra years after age 62 is worth it. With the big COLAS hitting SS, it results in a 10% increase EACH YEAR for every year that I wait, plus I am making over $85,000 a year, so my take home pay right now is over DOUBLE what SS would be paying me now. I can afford to work at least another couple of years.
Thank you for taking the time to design a very well organized video. Honestly this is the FIRST time I finally understood when SS gets taxed especially for family members with foreign income. This is also the first time I understood the difference between federal and state tax laws. For that I am grateful I can finally explain it to my dad who immigrated here and now has to file FBAR and other foreign income .... He does not get american SS so it is even more complicated as far as explaining to the IRS that his money is like monkey money he can't get it transferred into the US - anyways... so helpful thank you!
Thank You Jeff! Thinking about retiring at age 65 in February 2022 (retirement age 66 1/2) and your videos are really helping me decide to go the full retirement or pull the plug at 65. New subscriber and Thanks again!
I've never heard of people making the argument that illegal migrants come to the u.s. for s.s. benefits....everybody knows you have to work for a number of quarters (10years worth) and CONTRIBUTE to s.s. before you can collect...they come for welfare and free health care....not SS
@@mddrive2 well they have made the arguement. Just because you haven’t heard this narrative doesn’t mean it doesn’t exist. Yet another lie in a long stream of many by the lunatics in the GOP and their death cult zombies.
@@mddrive2 I've heard MANY ignorant people make this argument. Some people will latch onto any lie that backs up their ideology. It's called confirmation bias and we are all guilty of it to some extent, but these anti-immigration extremists are some of the worst when it comes to believing lies.
If you're 88, you're probably going to be in a nursing home on Medicaid; they will take that big check of yours and let you have 40 bucks a month, so it won't matter that you worked that extra 8 years
Speak for yourself! My father-in-law payed golf until he was 95. His last game was under his age. My mom drew SS until she hit the Medicaid bed at 91, then lived almost 3 more years (at $8500/mo). She drove past 85 and walked a mile or two daily at 88. I expect to die at 106, shot in bed by a jealous husband.
My dad just turned 88. His sisters came over for his birthday. They are 91 and 97! Medicare is insurance for those over 65. Not Medicaid. Your snarky comment just makes you look dumb instead of witty.
There is another reason to file for benefits early. I filed for social security benefits when I attained age 62. I did not need this extra income, so I carefully invested it in technology stocks. By age 70, the income I made each year on this investment plus my reduced SS benefits I received at age 70 greatly exceeded the income I would have made If had elected to receive my benefits much later.
I have a slightly different view on the 5% ROI assumption, by taking social security at age 62 and using those dollars early in retirement it allows the money already in our Roth accounts that much more time to grow tax-free, then later when we do start using Roth it greatly reduces our AGI and we may not cross those income thresholds for taxation of social security benefits.
@@juliuserving7841 you are correct sir!! i am glad i am still healthy, take no meds, just tired of working 10 hours a day, but the way things are going, also glad i have a job.
1 of many good comments you made raised an eyebrow. That when you collect at 67-70 vs 62? Basically that your body and mind are not or might not be the same. To each their own but my father passed away at 69 from Pancreatic cancer & 5 days b4 passing he said to me and my brothers " Guys enjoy life, keep working hard but work harder at enjoying life "...If life is better easier with collecting at 62? Don't look back, enjoy b4 & after retirement. Heck we have 1-60 years to reach goals & I think at 62 we shouldn't be working toward reaching $$$ goals, more like adding to & checking off the bucket list goals. Just my opinion
I WILL FOREVER ACKNOWLEDGE THIS CHANNEL WITH THE HELP OF YOUR LESSONS AND IDEAS EXPLANATIONS, NOW IT'S QUITE HELPFUL WHILE YOU'LL JUST SIT AT YOUR COMFORT AND MONITOR YOUR ACCOUNT GROWTH
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The criticism isn't illegals will draw social security, it's that they drive down wages and unduly burden social services Good video, I had thought of investing SS at age 62, just seems too risky, thanks for this channel
I keep hearing all these ages and dollar amounts. The assumption is that you are going to be healthy enough to enjoy your retirement and social security. So many of my friends have passed away without ever collecting a dime. This is such a personal issue. Thk U 4 sharing all your knowledge.
Every one I know have die before reaching retirement age except my husband he he retirement out age 74 and die 6yr later with dementia totally heartbreaking 💔
Loving your channel! Thank you for staying out of politics... there are some here that name call and generalize and it is such a turnoff... even if I may agree with them. ❤ Your advice is really helpful, thx.
Social security is over 22 trillion in the red unfunded liability and both our political parties voted send grand total to date of over 100 billion to Ukraine to fight Russians. George Washington and President Adams said stay out of foreign entanglements etc etc
You spend more money when you are younger. If not taking it at 62 greatly reduces your life style take it. I’m taking at 63 because I will be 77 when it equals out and goes on the negative.
I'm kind of in the same boat as you with the understanding that it's very difficult to overcome your genetics. I might delay a year or two at the max and that is only for spousal considerations.
Please make a video/tutorial -- on what benefits an immigrant can get from the US government. I refer to benefits like SSI -- which many Americans think is paid out of their contributions to the SSA. You can also mention unemployment compensation, rent assistance, food stamps, free cellphones etc.
When means testing was reached for during the Clinton administration, that was informative. Also on the table was a VAT, and "imputed income", both of which thankfully failed. The latter meant the government was going to create income for citizens out of thin air, with no money changing hands - a fraud meant to be used to increase taxes without an act of congress. So in that light, the vandals running the government probably look at means testing as "middle of the road" policy. Beware of cash in a mattress looking good in the wake of these de-facto [undebated] cuts: capped currency exchanges [for anyone other than banks] are a weapon they haven't drawn yet but if they do... I'm guessing any amount over $5k becomes dead money: completely illiquid in terms of being able to exchange it in the allotted time window and receive replacement in new bills - which I expect them to try to rope most exchange recipients into either a 1099 form at time of exchange, or likely suffer an audit trigger if they are middle class [and a lawyer blows out any value of "winning"].
Would you feel better if they paid out what you actually averaged? Which is Always much much lower than what you get. I don’t think so but be careful what you wish for.
I love these videos. That said, the VAST majority of my family on both sides died in their 70s. That means they all lived to 62, but not 82. I retired from Federal Service recently debt free at 59. I feel fine, but I do have health conditions. Anyway, it would be foolish for me to roll the dice and wait until 67 or later. My break-even age is 79. Hey, don't get me wrong, I'm going to try my best to live to 100 or later. I may not take SS at 62 but I'm not going to wait until 67 or later either.
But you were at Federal Service- that's like being retired every day you go there. You cant compare a govt hack job with producers. Enjoy your early retirement - you're welcome.
@@matt75hooper That's a very ignorant and assuming comment. You have no clue what I did. A lot of my Government years were with the military. I was a war veteran of Desert Storm and saw action in numerous other skirmishes. I had to buy back my military time to convert it to Federal Civilian Credit for Retirement, which I did. I'm not going into details, but I hated working for Homeland Security. The only thing I miss is the people I worked with. My job wasn't easy and my hours sucked. The only way I was off a Holiday or Weekend Day is if I took a Vacation Day or it just happened to fall on my regular day off. Yeah, that "Hack Job" was more demanding than any other civilian job I had. Also, every time there was a Government Shutdown, I was forced to work without pay because I was deemed "Essential". That doesn't happen with regular jobs because it's illegal. You can take your ignorant comment and shove it where the sun doesn't shine, Buttercup.
I am a retired firefighter from the Federal Government. I receive a Social Security Supplement with my retirement check. I am currently working for an overseas contractor. I am age 57 and will not take a check from SS until I am 65 or FRA at 67. Will I be penalized for making over 80K even though I have not accepted any full retirement benefit? Also, does your pension count for earnings?
I worked from 16 until 23 years old then became a stay at home mom . So i will not collect and don’t care . My husband retired at 55 and now 63 and collecting . We have enough for us . No debt , no mortgage, put all 3 kids thru college so they have no loans . But we also never did vacations . Simple life . God is good .
Here's my thought on "I might die tomorrow". If you die tomorrow, do you really think people are going to say, "Poor Joe he never collected SS", I doubt it? The remaining family will say, what did he leave, what's it worth, how much is my share? Certainly, Joe, the dead guy could care less right? Now, if Joe lives to be 98, every month he's alive after the breakeven point he's going to have $400-$500 more to spend. Now that is something Joe is going to appreciate, extra money to pay for a car payment, a nurse, or a cruise. The day Joe dies, the remaining family members are going to say "Good old Joe collected SS for 28 years!", What did he leave, what's it worth, how much is my share? Nobody else gives a damn about when you took SS. they only want their piece of the remaining pie.
@Sniper Logic no, you pay income tax on your full income less any 401(k) or health insurance deductions. You can also put money in a traditional Ira and get a tax deduction if your income is low enough to qualify. But you are definitely paying income tax on the FICA that is taken out of your check.
@@uncareid5557 most people receive much, much more than they put in. That is why social security has been called a Ponzi Scheme. Current workers fund the benefits for their parents and grandparents. The system is not self sustaining when too few workers fund too many beneficiaries. And the system redistributes contributions from higher to lower income beneficiaries.
You are my favorite MONEY GUY on UA-cam! Thank you for sharing your amazing knowledge with us! 62 and fixing to retire. God has blessed me but just trying to be smart with my money. You help us make smart decisions. No SS payment until full retirement age!
Figuring out Social Security is very scary, number 1 because I don't get math at all. Jeff Schmidt's video was easy to follow and it made very good sense, granted I will still have to watch it two or three more times to fully understand everything, but that is the way I retain information. He has other video's out there and even a short one of Instagram that help identify other issues when it comes to taking SS that I didn't even know about. So I am glad to have all this information shared by someone who knows the ins and outs of it to a tee.
The difference between taking at 62 and 67 is that if you wait until 67 it will take until age 82 to break even on the total amount you will collect. You wait til 67 it will take until age 82 to get the same total dollars that you'd get if you started at 62.
That's basically true, from what I understand. The details of each person's situation have to be taken into account, though. For myself, I think 65 is the best age to begin, because I want the flexibility to work p/t a couple more years and not hit the income threshold.
You're absolutely right. Why would anyone wait, so you get more but you already lost thousands that you could've collected if you collected earlier. It takes years to catch up what you lost and most people probably won't ever last those years or be well enough to enjoy it. Dumb mistake to wait, collect as soon as you can before they do away with payments altogether! You can't count on getting that money years from now. They could cut back or scrap the whole thing at any time especially in light of recent developments in the so called government. Only a fool trusts that they can collect a ton of money by waiting.
@@oceanlbi but if you make over the limit before full retirement age they will just reduced your payments to nothing. So for many it’s better to keep working and delay SS until full retirement age,,,it’s a win win. The only people who should take SS early are low earners.
I had no choice to retire my age of 63 because of health problems I had didn't have a choice so I work from 16 years old till then and get the chump change they give me
You understand this represents what you put into it right? It’s MORE than you ever earned on average even when you were earning your very most. Social Security is not designed to be your only income at retirement. When you say you’ve been working since 16 and you get a measly amount of social security, that means you earned a Measly amount of money. We have to start being responding from an educated place or a curious place or the benefits you’re complaining about will cease. Like how children who complain about dinner go to bed hungry? And they didn’t even taste the food first?
I took my social security widow’s benefits at sixty one. I had a choice of being homeless or taking reduced benefits. Because of my cancer diagnosis and then my husbands sudden death at sixty two. I had only been working a minimum wage part time job when he died. So I certainly couldn’t live on that . He was the main bread winner. So I will receive reduced benefits forever. I did however hold it off for three extra months after he died by using my stimulus and work checks to not get it right away. Those three months are an extra three hundred a month. It may not sound like much but I figure that will cover most of my Medicare payment when I turn sixty five. I also will have my mortgage paid off this year. My car however will not be paid off for another three years. I plan on saving the money from my mortgage pavement use for emergency repairs to my home or my car.I will work as long as my job lasts or my health lasts. I enjoy working even though I can’t do full time.
Love your channel, Question: In different videos, I hear you say that SSN will end in about 2034 (12 yrs, from now) or sooner due to the current Presidents' new policy. With 12 yrs. to go or less, does it pay to wait till 67 if one retires now? Question is will SSN end in 2034?
Fair Warning. If you are a teacher in some school systems they don’t withhold SS because of the contribution to the state school retirement fund. The downside. When my wife retired in addition to the STERS pension she would have received $750 a month from SS. Instead she received $250. An adjusted amount due to the years she was not contributing to SS? What baffled me is at the SS office there were people applying who may have contributed “0”.
If I find something I like I plan on working P/T to fund a Roth IRA. I can make $7K working a few hours a week. Then when I start to draw those funds down they will not affect my provisional income. My pension is less than $17K annually so I should be good with the tax man.
Do you have any video explaining the new rule about the spouse taking s s.retirement from the other Spouse even if the are divorced but we're married more than 10 years. Tks
Hello Geoffrey, I ALREADY SAW A DRAMATIC CHANGE!!! I received a letter from the SSA stating that THEY made a mistake and that I would owe them $3,500 with no other comment or explanation. So I sent a letter to the SSA in Birmingham (AL) with a request for an explanation. The “answer” was “SSA will pay $0.00 of SSA benefits until March 2023 with no other comment or explanation. The teller at the local SSA responded with “It’s all your fault. It’s in the computer”. Asking “Why” and “What went wrong” was answered with “I don’t know”. I feel like legally “RAPED” since the SSA “IS ABOVE THE LAW” and can come up with ANY CLAIM at ANY TIME claiming ANY AMOUNT with NO EXPLANATION and I will NEVER see any SSA benefits for what I paid 25 years every month. PLEASE ADVISE. THANKS.
@@HolySchmidt It's too late for me! Save yourselves! It's almost as if, to get a net out amount out of my 401k, I need to withdraw almost double what I need.....
So in other words we should just work our life away so that the government can keep all the extra money that we don’t collect because we don’t get enough money after working for 50 years in my case and I don’t have anyone that can collect my social security when I pass away.
I just lost my best friend at 70. He had hypertension, diabetes and was obese. Massive stroke. I lost both my in-laws last year. Both over 95 years of age, both of sound mind to the end. Any health care pro is going to see a lot of death. I worked in a nursing home 50 years ago. All my customers ended up dead. Some 60s, most much older. I am fit and I walk daily. My mom almost hit 94 and did not have great health habits. I expect to live past 100.
I had a younger sister die at 63 and a brother die at 77 in the last few months. Neither was from covid. My best friend growing up died at 62 after he retired at 58. He had a very stressful job.
I’m a RN and I’ve seen a lot of people die at all ages, especially after 70. My parents are 90 and 91, they have outlived most of their friends and acquaintances. They are still active(driving, gardening, shopping and Sunday services) and their mental acuity is still sharp. Dad took SS at 62 and mom(RN) at 66 and continued to work until 70.
You counted the investment of the excess income between age 62 and 67. But you failed to credit the 5% return AFTER age 67 on the incremental money of 80,367. 5% return on this is 4018.35 in a year. This is 334.86 per month. So the difference is not 607 but 607 -334.86. If you did, the gap between what you earn at 62 and 67 would go down significantly. The break even age then becomes 96, not 82. If you are working then due to SSN rules, it makes sense not to withdraw. But if you retired voluntarily, then however you would have supported yourself between age 62 and 67 while deferring social security, you would do it the same way. You probably have sufficient investments in your ROTH, 401 K and brokerage accounts or a job that gave you pension.
Isn't it true that once you hit your 67th birthday, there is NO limit on your work income and you can work full time AND receive full SS payments. It seems so many people leave this out, and instead emphasize the less important point that once you enter the calendar year of your 67th birthday the payback switches to the less punitive 1 for 3. For example, my birthday is in April, so the amount of SS received over the limit is paid back at 1 for 3 for Jan through my birthday in April. Then after my 67th birthday in April there is no payback and I can work fulltime and receive full SS. Isn't that right? I hope I'm right in understanding that.
Oh oh oh! I thought you were saying that, above $44K (from the 2021 data), Social-Security Benefits are taxed at an 85% rate! I gather you’re actually saying is *_85%_* of those SSBs are taxed *_at normal rates_* (as normal income). Needless to say, that’s … much less-objectionable!
I’m lucky to have a pension and 457 retirement account that I withdrew to pay off my house. I’m living off my monthly pension in a mortgage free house at 61. Not sure if that would decrease my SS benefits when I file at age 62. Hopefully I made the right decision.
Not fair to individuals (parents) who stay home to raise babies, or home school. Sadly this is American culture that does not value unpaid or underpaid work of women.
I am planning on taking my social security in 5 years When I'm 65. I had 60 thousand in a 401k from my last job that I rolled into a IRA when i changed jobs. I thought about taking 15 thousand out each year for the next 4 years so I wouldn't have to pay too large of taxes on it. I would then put it in a savings account. Do you see any problems in that idea?
0:59 - “Earnings limits”: Are withdrawals from your 401K classified as “earnings,” or do these “earnings” only include salary and wages, such as from a proverbial “side hustle”?
My wife is claiming her social security starting at age 62, when I turn 67 she will switch to 50% of mine. This is known as the split strategy. Can you address this please?
@@deanbarnett1502 It might be a good idea to get counsel. I did, over four years ago when I was about to turn 62. I was planning on claiming early because I did not want to "miss out" on "lost" benefits. I did not need the money, I was just upset that it would take me 143 months to "Break even". I found a guy who gave me 2 FREE one hour sessions and he changed my course. I am now 66 and still waiting. My wife is 65 and she is going to wait for FRA or perhaps a little longer. We don't need the $$ right now, we will need it 10 years from now. "Don't worry about breaking even, worry about being old and broke". That guy is in NJ but he will zoom with you if you are interested.
No one ever advises to take a lower paying, 40 hour basic job with healthcare. Nobody. That's an alternative to taking ss at 62 and paying for healthcare, assuming you are fine with your 35 highest paying years. My life expectancy is 90+ so aiming for 65.
I did not discover until a few years ago that social security depends on income, hahahahaha, isn't that funny! I just thought it happened! I got a job at 60 that pays a pension after 5 years of credible service, so after working 6 years as somewhat part-time, I will be eligible. I started getting social security last year, and just used it to finish paying my mortgage off, otherwise that would have continued until I was 73 (don't ask me why I thought a 30 year mortgage sounded good at 43). Now, my house is paid off, and I am working on two things, fixing a few things up, and that pension, then I will retire. I like money, and I like to play, so, I feel like I am still able to have both. Thank you for this video!
Could you give some information about when to start using your 401K and or ROTH IRA funds? Do you have to start using these funds or get a penalty? Thanks😊
Unless your still working I always suggest that one start SS at age 62! Some people if they waited till FRA would need to live til they reach their mid 80's just to break even and that did not include putting the money in interest accounts or stocks and bonds which make it even later!! Take it now! Dont need it? Invest it!!
THANK YOU! I am just starting my SSI application journey and am looking for experts to listen to. With my life, and the way it usually goes, I know that if left unguided, I will do all of the irreversible mistakes that can be made. I can only hope to avoid a few of them today. Again, thank you.
I waited till 63, sold larger house to downsize, now 3yrs later, I OWN a smaller house and truck, zero dept and still have not touched my IRA accounts. I rather collect at 63 and be happy than wait till 67, he never mentions fact you get 5 years of SS money ti live on if not wait till 67.
Regarding my wife filing for her spousal benefit, how old does she have to be to file? Will her spousal benefit be higher if she waits to file? How do they determine her benefit amount? For example, I plan to file at 70 and I expect my benefit to be $4000 per month or more. If my wife makes between 32-50% of this $4000 is that percentage determined by how old she is when she files?
From my research I believe your spouse will get her highest spousal benefit if she waits until her full retirement age. She would then get 1/2 of your "full retirement age" benefit, not what you get if you wait until age 70. Also, she can't get a spousal benefit until you start taking your benefit.
I just happened to see your videos tonight, and now I am hooked! I am turning 64 this month and have some decisions to make. What I really like is that they’re the right length, so I can watch several as if I am reading chapters of a book that I can put down and return to at any point, versus sitting through a long 30-minute lecture. Keep up the great work!
I can't retire anyhow. So I'm getting every dime I can. I'm 60, and my husband died 10 yrs ago so I'm getting surviver. When I reported my income they were so nasty telling me it's not worth it. Now that I've gone through the whole application process. I'm not changing my mind now. If I only get 3 to 5 months a year, that's money I wouldn't have if I didn't apply.
I got to be honest, it seems like most of your advice is for those that made $100,000 or more. That's not even remotely close to median income for a single person right? So what I find out is most of what you're talking about it's not applicable to me.
My dad reached age 62 and died at age 74. His brother reached age 62 and died at 63. So the track record for men in my family isn't good. I reached age 62 and took Social Security. Now...here's the thing - my job situation was so stressful that had I stayed, I might not have made it to age 63...I honestly think it would have killed me, the stress was that bad. I retired two and a half years ago and life has never been better. You cannot put a price on that.
Wise decision! Thank God.
I’m in a similar work situation, but my family’s track record on longevity isn’t in favor of early retirement. 108; 102, 98, 95, and so forth. Even those born in the late 1800s lived a long time.
Exactly what my problem was. I took my retirement benefits at 62 and much happier. Since I live outside USA Iam not subject to state tax laws. Life is more important than a few hundred dollars a month
Thank you for your story, I was in the same boat. I lost about $3000 a month in retirement because I had not stayed another 6 years, but I would have been a mess. I balanced how our current retirement income would be, and we really didn't see a change in our lifestyle. I told my corrupt California government employer to take their job and shove it. I left a $108,000 a year job to be stress free and live my life. I occasionally text my co-workers, and they say things have gotten worse. I guess I made the right choice. BTW, my father had passed away at age 47, so time might not have been on my side.
I as well called it quit at 64👍
Schmidt's math is wrong....if your FRA SS payment is $1,789, then your early SS payment at 62 will be $1,252 NOT $1,189. SS works like mathematical precision and collecting 5 years early will reduce your benefits 30% or TO 70% of that at FRA.
I'm not sure if he deliberately does this to make taking SS early less attractive as he often cites waiting till 70 to collect SS as "conventional wisdom".....which it's not! HE likely believes in this because he often shares that he feels people will live much longer than they will....and those who delay will lose on their gamble. I too was an accountant in my career and delaying was never consider "conventional wisdom" among my peers....too many drawbacks in doing so.
There is a reason they pay you more from 62 to 70. They hope you don’t make it
Like was stated, one luxury none of us have is time. I’ve worked since I was 15. I will be 62 in 2023. I’m going to retire early. I probably won’t feel as good at 67 as I do today . I’m tired of being a slave! Holy Schmitt!
I retired at age 63, may be getting less than retiring at age 67, but the pure enjoyment of leaving the stress of working for corporate is well worth the little bit of difference, simply pure peace of mind and happiness!
Hated commute to work probably live longer without the stress
Work a union job bosses can't get away with harassment and you get a pension to supplement SSI
I quit at 62 and would never go back but I'm thinking about paying the SS back and waiting because I see now I don't need the money to live on and I would get quite a bit more later. I need to talk to someone and figure out what I should do.
@@grannygoes7882 Good to hear, I would suggest seeing your accountant for advice, they know all the ins and outs of SS and should be able to build a spread sheet showing your numbers now and into the future, enjoy your retirement, the best gift one can do for themselves as my dad once said, cheers!
@@grannygoes7882 Not a good idea to give it back. If you stop you do not get the cola increase every year for inflation when you're not drawing. Also what about the 23% cut that they are projecting 11years from now? Take all the money you can from them now. If you don't need the money , buy the inflation adjusted I series savings bonds paying 7%.
This is one of the best personal investment channels on UA-cam. Thank you for the great advice.
I turned 62 in October. All 4 of my grandparents did not make it past 65. My mother made it to 71; my father made it to 78 (after 20 years of Alzheimer's); my only sibling died at 64. Who wants to convince me to not apply for Social Security now and wait until I'm 67 or 70?
Don't pin your plans on something uncontrollable. If I lie awake wondering how long I'm going to live, I'll die sooner from that
If I die then I don’t need it but if I live I’ll need every dime
Hope you filed already, with your family history I would have, best to ya!
A lot of it depends on lifestyle. My brother in law took his SS early because his father and all his brothers died in their sixties. He's eighty and going strong because he eats a healthy diet and exercises regularly
What these so called experts never mention is that if you wait until you are 70 to take SS instead of 62, it will take you 13 years to makeup the money you could have been earning and investing and playing with. That brings you to 83. Take your SS as early as you can folks. Oh, and remember, it's not a benefit. It's your money.
Very good points. I think people forget about both of those points.
How about if I’m 62 now, and can still make 75-100K a year.
@@bryanhauschild4376 It's up to you. Can you retire? Meaning, are you debt free? Do you have enough savings? Do you want to retire? If you want to keep working, then keep working. Of course you could still take your SS and just pay the penalty every year until you retire. I chose to retire at 58. Life has never been so good.
@@danbouchard6780 need to keep working. Still have two kids to put thru college. That begs another question. If I retire will it help with getting college loans and grants if I have lower income?
I like what you just said I have work sense age 12 very little progress just making 40,000 just tied no process its time to throw in the towel.
I love your videos. Very direct and to the point, no BS. I wish you were my financial advisor! I don’t want someone who is focused on judging on what we SHOULD HAVE AND SHOULD NOT have done. I want someone who can simply tell us what we need to do and how to do it. Thanks for all the great information.
The thing that makes retirement at 62 a problem for me is getting health insurance. I'm 62 and the earliest I feel I can retire is 65 in order to be eligible for Medicare.
Same here, I priced a policy, $1013.00 a month
I pay $1114.50 per month as a single person. I never thought I would say this, but my 65th birthday is approaching & I am happy as hell to apply for Medicare, which I am in the process of doing. I only have 1.5 months of regular payments then it's Medicare for me!! These high payments happened because of Obamacare.
@@BornAgainBride I took my exact same policy & ran the numbers and it cost more on Obamacare, believe it or not!
@@RG-hf4et That's a bummer, sorry to hear that. I have heard the ACA policies are very cheap for those, for example, who are not drawing any income, perhaps living off a cash bucket for a few years prior to drawing SS.
@@RG-hf4et You can't be serious? Do some research heck even the comment below yours is 100% accurate. Now if your income levels are high than well hey you've lived a good life and if not trust me there are avenues you should be exploring to make it happen. The info is out there it just takes time
I retired at 62. As Schmidt states frequently in his videos, it is a constant check of your resources and how you manage them that matters. There is no magic date or savings amount, it is all up to the individual.
Grandma died @39 before I was born
Mother died @47
Older sister died @60
I practically ran to SS @62
Less $ but at least I am collecting
Had a heart attack @41..2016 bypass surgery😢 now approaching 62..i believe it is my best bet..❤
The last few minutes were very informative with regard to receiving SS early and investing at 5%. Job well done!
I will be 67 in January , I am doing mine now instead of waiting to 70. My mind is willing , but 40 plus years of concrete construction said , no.
If you don't collect at 62 and wait till 67, that's 60 months you didn't collect
Say one was going to get 1000$ a month at 62 and 1500$ a month at 67
So that's 60000$ one didn't collect
Starting at 67 it would take 10 years (1500$ -1000=500 a month difference) to make up the 60000 one didn't collect between 62+67
So at 78 you would "technically" start losing money
Who knows if you're going to live until 78
Even if you do, wouldn't you prefer to have the money when you're younger and can enjoy it??
I retired last year at 62, received my first check 01/09/2021,had a heart attack 01/17/2021. Doing well now, but you can't ever tell what might happen.
The only way you can know for sure what's best for you is if you know, in advance, the date of your death. Let's just assume at this point you don't have that information. So lets look at family history and guess. Anybody who tells you it's a mistake to take your Social Security at age 62 is not telling you the truth because they don't know when you are going to die either. Everybody points to the higher amount you receive per month by waiting. What they don't seem to factor in is the 4 extra years of payments that you get when you take the money early. Do the math. Figure out what your "break even age" is and then decide. By that I mean, how old will you be when the higher amount you got by waiting catches up with the lower amount you would get by taking the money early. You don't start making more money until that date. For me it was 79 years 8 months. So I had to ask myself one question. Do I want 4 more years of retirement, or more money when I am almost 80? Everybody worries about the money, but there something at play here that is far more valuable than money. It's time. I am now 67 and I have been retired for almost 5 years. If you are worried about money then you need to know this. It matters more how much you owe than it does how much you have. Pick your date and set your goal to be debt free by that date. The freedom that being debt free brings will pretty much let you forget about money. What would you do to get 4 more years of not working and what is that worth to you? That's the real question you need to be asking.
Very well said! Having watched my parents live frugally my dad died with a net worth of greater than $1,000,000 and leave it to my mother who died seven months later. Before her death with her health failing she posed the question, “ what good does my money do me?” People act like an extra $1,000 a month in our last years will be life changing, from my personal experience of watching my parents as well as being a 53 year old widower who does less and less I just don’t see it. At this point of my life I have no needs and very little wants and the ones I do have can’t be bought. Most worry about dying, I lay awake at night scared to death I’ll outlive my health.
I agree, being debt free is really important. If you have a choice, wait until you have no debts to retire.
@@stephendibari5010 Nobody should be taking advice from you.
$60,000 in personal debt at 57 with a good job? Sad
@@GMULEMAN nothing positive to say you should keep your comments to yourself
@@stephendibari5010 You should take your own advice.
Interesting video.
I'm a CPA also, and I retired at age 59. The additional $$$ from SSI between age 62 and 67 was not worth the hassle of working that additional time.
Yes, the math makes you more $$$, but as your quality of life decreases based on age, you may bee working yourself to the grave. Then you get zero.
But also, chances are, as a CPA, you've done ok for yourself & have retirement savings which makes life a lot easier!
You should have opted out early
Its wrong to make working people give money back.we should hang these politicians that took from our s s system .they was supposed to be working for us
@@jamesbaskins6351 Lolol, you know that ain't happening!!
I am not so clear on working 35 years or zeros will be added on the not working years. Could someone help thanks
You have to also look at the health benefits of retiring. I went from sleeping 6.5 hours a night to 8-9 hours. I'm feeling a lot more alert and not having to take naps. I wake up when I want to, and don't worry about all the deadlines and suspenses. Life is so much more relaxing, and I get the see the grandkids more often. To tell the truth, I never invested my money which I should have. But my plan was to retire from as many jobs as I could. I currently have a military, State employment, Social Security, and a private employment retirement. I figure I only have 30 years left, I might as well enjoy it.
Man that all sounds great good luck to you . I’m 51 now I’m grabbing my psers retirement at 62 with 40 years and ss at 62 also
They really should teach this in high school along with car insurance, buying a house...etc. Great video...always learning something. Thanks
If you can watch a video surely you can walk into a library and read books..
8 out of 10 kids are bored with math, english and history, try showing them the best age 67 or 70, to retire. Ha !!!
@@bentnickel7487 well the caliber of teaching has decreased significantly over the years. I had very invested, highly interesting teachers who actually taught not switched on videos and sat there doing nothing. I think it is tragic what passes as "education" now.
@@savannahsmiles1797 I'm glad I'm not in college trying to decide.
As a retired teacher myself, I can attest that our plate, in 2021, is full. Educators cannot include every aspect of life in lessons. Families must take responsibility for either introducing or supporting topics covered in class. Please stop passing the buck so that "teachers can deal with that."
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@@BennettElizabth That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
Health care is a big deal. You won't have Medicare until 65 years old
It is a big deal. Too bad Wolf Blitzer buffalo'd the public in successfully attacking Ron Pauls short but decent explanation of how charity medicine used to work, using a masterful misdirection during a presidential nominee debate many moons ago: "what do you want them to do...die?" Nobody on the stage caught what happened: health insurance replaced health care in that one snide rhetorical question, and Wolf skated away. So much for Newt being the smartest man in the room. Fast forward to the aftermath of the Roberts court decision [silently using HIPAA as a guidepost instead of the constitution] and... alot have insurance still, but with premiums doubled [or worse] in exchange for extra high deductibles, alot less have actual health care - and the slide hasn't picked up full steam yet. It will in the next market crash.
I'm 55 , widow , cancer heart disease, I think I should retire at 62.
For me, waiting a few extra years after age 62 is worth it. With the big COLAS hitting SS,
it results in a 10% increase EACH YEAR for every year that I wait, plus I am making over
$85,000 a year, so my take home pay right now is over DOUBLE what SS would be paying
me now. I can afford to work at least another couple of years.
If you delay until you’re age 70, make sure to do the math on 6 months
Retroactivity.
Thank you for taking the time to design a very well organized video. Honestly this is the FIRST time I finally understood when SS gets taxed especially for family members with foreign income. This is also the first time I understood the difference between federal and state tax laws. For that I am grateful I can finally explain it to my dad who immigrated here and now has to file FBAR and other foreign income .... He does not get american SS so it is even more complicated as far as explaining to the IRS that his money is like monkey money he can't get it transferred into the US - anyways... so helpful thank you!
Thank You Jeff! Thinking about retiring at age 65 in February 2022 (retirement age 66 1/2) and your videos are really helping me decide to go the full retirement or pull the plug at 65. New subscriber and Thanks again!
Thank you for debunking the immigrant scapegoating around receiving soc sec benefits. Facts often get in the way of political ideology.
Reality has a well known liberal bias. -SC
I've never heard of people making the argument that illegal migrants come to the u.s. for s.s. benefits....everybody knows you have to work for a number of quarters (10years worth) and CONTRIBUTE to s.s. before you can collect...they come for welfare and free health care....not SS
@@mddrive2 well they have made the arguement. Just because you haven’t heard this narrative doesn’t mean it doesn’t exist. Yet another lie in a long stream of many by the lunatics in the GOP and their death cult zombies.
@@mddrive2 I've heard MANY ignorant people make this argument. Some people will latch onto any lie that backs up their ideology. It's called confirmation bias and we are all guilty of it to some extent, but these anti-immigration extremists are some of the worst when it comes to believing lies.
If you're 88, you're probably going to be in a nursing home on Medicaid; they will take that big check of yours and let you have 40 bucks a month, so it won't matter that you worked that extra 8 years
Speak for yourself! My father-in-law payed golf until he was 95. His last game was under his age. My mom drew SS until she hit the Medicaid bed at 91, then lived almost 3 more years (at $8500/mo). She drove past 85 and walked a mile or two daily at 88. I expect to die at 106, shot in bed by a jealous husband.
My dad just turned 88. His sisters came over for his birthday. They are 91 and 97!
Medicare is insurance for those over 65. Not Medicaid.
Your snarky comment just makes you look dumb instead of witty.
@@uncareid5557 Haha, I'll have to live to about 120 in order to shoot under my age!
My 97 year old mom, who lives by herself, still drives, shops and walks 3 miles a day would strongly disagree with you.
@@Surfbird11 Medicaid can pay for a nursing home. Medicare doesn't.
There is another reason to file for benefits early. I filed for social security benefits when I attained age 62. I did not need this extra income, so I carefully invested it in technology stocks. By age 70, the income I made each year on this investment plus my reduced SS benefits I received at age 70 greatly exceeded the income I would have made If had elected to receive my benefits much later.
Thanks for keeping this non-political - very helpful
I have a slightly different view on the 5% ROI assumption, by taking social security at age 62 and using those dollars early in retirement it allows the money already in our Roth accounts that much more time to grow tax-free, then later when we do start using Roth it greatly reduces our AGI and we may not cross those income thresholds for taxation of social security benefits.
i just retired at 66, and i was told i can make as much as i want without penalty. me a happy camper.
@BUCK FIDEN! LOL, your right, i want a motorcycle, and my credit sucks, so yeah i gotta workfor awhile more. love your moniker.
Happy camper. Everybody's days are numbered, quality of life is the main issue !!
@@juliuserving7841 you are correct sir!! i am glad i am still healthy, take no meds, just tired of working 10 hours a day, but the way things are going, also glad i have a job.
1 of many good comments you made raised an eyebrow. That when you collect at 67-70 vs 62? Basically that your body and mind are not or might not be the same. To each their own but my father passed away at 69 from Pancreatic cancer & 5 days b4 passing he said to me and my brothers " Guys enjoy life, keep working hard but work harder at enjoying life "...If life is better easier with collecting at 62? Don't look back, enjoy b4 & after retirement. Heck we have 1-60 years to reach goals & I think at 62 we shouldn't be working toward reaching $$$ goals, more like adding to & checking off the bucket list goals. Just my opinion
Hey.... I got an Uncle who lives in "TAXES".....Dallas Taxes!!!!!!! 🤣
I WILL FOREVER ACKNOWLEDGE THIS CHANNEL WITH THE HELP OF YOUR LESSONS AND IDEAS EXPLANATIONS, NOW IT'S QUITE HELPFUL WHILE YOU'LL JUST SIT AT YOUR COMFORT AND MONITOR YOUR ACCOUNT GROWTH
Please can I be your friend if you don't mind sharing your experiences with me?
Okay, can share some business ideas like
1.Crypto
2. Stocks
3.Shores
Interesting please how can I get more info, I don't want to remain out of ignorance
Amazing to see another who trades with Mr Mark Lopez I am currently on my fifth trader with him and my portfolio has grown tremendously. Your weekly signals are highly profitable
This is not the first time I'm hearing about Mr Mark Lopez and he exploits in the trading world but i have no idea how to reach him.
It doesn't matter my retirement age is in 2031 social security will be broke in 2034 what a joke I work my whole life for nothing 😔
The criticism isn't illegals will draw social security, it's that they drive down wages and unduly burden social services
Good video, I had thought of investing SS at age 62, just seems too risky, thanks for this channel
Thanks for your comments
You forgot to mention the break even age for withdrawing at age 62 is 82. So, if I do live until 82, might as well start at 62.
I keep hearing all these ages and dollar amounts. The assumption is that you are going to be healthy enough to enjoy your retirement and social security. So many of my friends have passed away without ever collecting a dime. This is such a personal issue. Thk U 4 sharing all your knowledge.
Every one I know have die before reaching retirement age except my husband he he retirement out age 74 and die 6yr later with dementia totally heartbreaking 💔
Loving your channel! Thank you for staying out of politics... there are some here that name call and generalize and it is such a turnoff... even if I may agree with them. ❤ Your advice is really helpful, thx.
Social security is over 22 trillion in the red unfunded liability and both our political parties voted send grand total to date of over 100 billion to Ukraine to fight Russians. George Washington and President Adams said stay out of foreign entanglements etc etc
You spend more money when you are younger. If not taking it at 62 greatly reduces your life style take it. I’m taking at 63 because I will be 77 when it equals out and goes on the negative.
I began SS at 62. Dad died at 69, mom at 72, only sibling at 55. Genetics are not on my side.
I'm kind of in the same boat as you with the understanding that it's very difficult to overcome your genetics. I might delay a year or two at the max and that is only for spousal considerations.
Please make a video/tutorial -- on what benefits an immigrant can get from the US government. I refer to benefits like SSI -- which many Americans think is paid out of their contributions to the SSA. You can also mention unemployment compensation, rent assistance, food stamps, free cellphones etc.
My dad passed at 52. His brother at 47. Mom is now 81.
"Give a large portion of it back." It's pure robbery. It's not theirs to take.
When means testing was reached for during the Clinton administration, that was informative. Also on the table was a VAT, and "imputed income", both of which thankfully failed. The latter meant the government was going to create income for citizens out of thin air, with no money changing hands - a fraud meant to be used to increase taxes without an act of congress. So in that light, the vandals running the government probably look at means testing as "middle of the road" policy.
Beware of cash in a mattress looking good in the wake of these de-facto [undebated] cuts: capped currency exchanges [for anyone other than banks] are a weapon they haven't drawn yet but if they do... I'm guessing any amount over $5k becomes dead money: completely illiquid in terms of being able to exchange it in the allotted time window and receive replacement in new bills - which I expect them to try to rope most exchange recipients into either a 1099 form at time of exchange, or likely suffer an audit trigger if they are middle class [and a lawyer blows out any value of "winning"].
@@flinch622 I have a feeling youre spot on. I hate that wicked criminals stole control.
Would you feel better if they paid out what you actually averaged? Which is Always much much lower than what you get. I don’t think so but be careful what you wish for.
Working part time after 35 good years WILL greatly increase your benefit if it means delaying taking benefits. Maybe I misunderstood you.
What doesn’t make sense if you decide to collect at 62 and find another job you’re still paying back into the system why the limits?
I spent 40 years selfemployyed so I paid double by matching my own SSI that is not fair
I love these videos. That said, the VAST majority of my family on both sides died in their 70s. That means they all lived to 62, but not 82. I retired from Federal Service recently debt free at 59. I feel fine, but I do have health conditions. Anyway, it would be foolish for me to roll the dice and wait until 67 or later. My break-even age is 79. Hey, don't get me wrong, I'm going to try my best to live to 100 or later. I may not take SS at 62 but I'm not going to wait until 67 or later either.
But you were at Federal Service- that's like being retired every day you go there. You cant compare a govt hack job with producers. Enjoy your early retirement - you're welcome.
@@matt75hooper That's a very ignorant and assuming comment. You have no clue what I did. A lot of my Government years were with the military. I was a war veteran of Desert Storm and saw action in numerous other skirmishes. I had to buy back my military time to convert it to Federal Civilian Credit for Retirement, which I did. I'm not going into details, but I hated working for Homeland Security. The only thing I miss is the people I worked with. My job wasn't easy and my hours sucked. The only way I was off a Holiday or Weekend Day is if I took a Vacation Day or it just happened to fall on my regular day off. Yeah, that "Hack Job" was more demanding than any other civilian job I had. Also, every time there was a Government Shutdown, I was forced to work without pay because I was deemed "Essential". That doesn't happen with regular jobs because it's illegal. You can take your ignorant comment and shove it where the sun doesn't shine, Buttercup.
I am a retired firefighter from the Federal Government. I receive a Social Security Supplement with my retirement check. I am currently working for an overseas contractor. I am age 57 and will not take a check from SS until I am 65 or FRA at 67. Will I be penalized for making over 80K even though I have not accepted any full retirement benefit? Also, does your pension count for earnings?
I worked from 16 until 23 years old then became a stay at home mom . So i will not collect and don’t care . My husband retired at 55 and now 63 and collecting . We have enough for us . No debt , no mortgage, put all 3 kids thru college so they have no loans . But we also never did vacations . Simple life . God is good .
It definitely makes since to sign up if you have ANY medical issues. Life is short.
Here's my thought on "I might die tomorrow". If you die tomorrow, do you really think people are going to say, "Poor Joe he never collected SS", I doubt it? The remaining family will say, what did he leave, what's it worth, how much is my share? Certainly, Joe, the dead guy could care less right?
Now, if Joe lives to be 98, every month he's alive after the breakeven point he's going to have $400-$500 more to spend. Now that is something Joe is going to appreciate, extra money to pay for a car payment, a nurse, or a cruise. The day Joe dies, the remaining family members are going to say "Good old Joe collected SS for 28 years!", What did he leave, what's it worth, how much is my share? Nobody else gives a damn about when you took SS. they only want their piece of the remaining pie.
Double taxation paid taxes on the money the first time, now on the second
No taxes were paid on the employer's contribution or interest.
If the federal government taxes you on social security, doesn't that amount to double taxation, since you already paid tax the first time around?
@Sniper Logic Yea, it’s called Pre-taxed dollars. Like 401-K dollars you are taxed when you begin receiving it as retirement.
And most people get out far more than they put in. My "break even" is 62 months, after that it is an 18% return.
The criminal government can triple tax us if they so choose!
@Sniper Logic no, you pay income tax on your full income less any 401(k) or health insurance deductions. You can also put money in a traditional Ira and get a tax deduction if your income is low enough to qualify. But you are definitely paying income tax on the FICA that is taken out of your check.
@@uncareid5557 most people receive much, much more than they put in. That is why social security has been called a Ponzi Scheme. Current workers fund the benefits for their parents and grandparents. The system is not self sustaining when too few workers fund too many beneficiaries. And the system redistributes contributions from higher to lower income beneficiaries.
You are my favorite MONEY GUY on UA-cam! Thank you for sharing your amazing knowledge with us! 62 and fixing to retire. God has blessed me but just trying to be smart with my money. You help us make smart decisions. No SS payment until full retirement age!
Figuring out Social Security is very scary, number 1 because I don't get math at all. Jeff Schmidt's video was easy to follow and it made very good sense, granted I will still have to watch it two or three more times to fully understand everything, but that is the way I retain information. He has other video's out there and even a short one of Instagram that help identify other issues when it comes to taking SS that I didn't even know about. So I am glad to have all this information shared by someone who knows the ins and outs of it to a tee.
The difference between taking at 62 and 67 is that if you wait until 67 it will take until age 82 to break even on the total amount you will collect. You wait til 67 it will take until age 82 to get the same total dollars that you'd get if you started at 62.
That's basically true, from what I understand. The details of each person's situation have to be taken into account, though. For myself, I think 65 is the best age to begin, because I want the flexibility to work p/t a couple more years and not hit the income threshold.
You're absolutely right. Why would anyone wait, so you get more but you already lost thousands that you could've collected if you collected earlier. It takes years to catch up what you lost and most people probably won't ever last those years or be well enough to enjoy it. Dumb mistake to wait, collect as soon as you can before they do away with payments altogether! You can't count on getting that money years from now. They could cut back or scrap the whole thing at any time especially in light of recent developments in the so called government. Only a fool trusts that they can collect a ton of money by waiting.
@@oceanlbi but if you make over the limit before full retirement age they will just reduced your payments to nothing. So for many it’s better to keep working and delay SS until full retirement age,,,it’s a win win.
The only people who should take SS early are low earners.
@@2003evodave I hadn't considered those still working. I retired early to care for my parents but you have a good point about those still working.
@@2003evodave good point. I forgot abt the reduced benefit when working. Yeah, I'll wait for FRA.
I had no choice to retire my age of 63 because of health problems I had didn't have a choice so I work from 16 years old till then and get the chump change they give me
You understand this represents what you put into it right? It’s MORE than you ever earned on average even when you were earning your very most. Social Security is not designed to be your only income at retirement. When you say you’ve been working since 16 and you get a measly amount of social security, that means you earned a Measly amount of money. We have to start being responding from an educated place or a curious place or the benefits you’re complaining about will cease. Like how children who complain about dinner go to bed hungry? And they didn’t even taste the food first?
Great information. I'm retired at full retirement 66. I forwarded to my kids (39 and 41) and recommended they subscribe, also.
I took my social security widow’s benefits at sixty one. I had a choice of being homeless or taking reduced benefits. Because of my cancer diagnosis and then my husbands sudden death at sixty two. I had only been working a minimum wage part time job when he died. So I certainly couldn’t live on that . He was the main bread winner. So I will receive reduced benefits forever. I did however hold it off for three extra months after he died by using my stimulus and work checks to not get it right away. Those three months are an extra three hundred a month. It may not sound like much but I figure that will cover most of my Medicare payment when I turn sixty five. I also will have my mortgage paid off this year. My car however will not be paid off for another three years. I plan on saving the money from my mortgage pavement use for emergency repairs to my home or my car.I will work as long as my job lasts or my health lasts. I enjoy working even though I can’t do full time.
Love your channel, Question: In different videos, I hear you say that SSN will end in about 2034 (12 yrs, from now) or sooner due to the current Presidents' new policy. With 12 yrs. to go or less, does it pay to wait till 67 if one retires now? Question is will SSN end in 2034?
Fair Warning. If you are a teacher in some school systems they don’t withhold SS because of the contribution to the state school retirement fund. The downside. When my wife retired in addition to the STERS pension she would have received $750 a month from SS. Instead she received $250. An adjusted amount due to the years she was not contributing to SS? What baffled me is at the SS office there were people applying who may have contributed “0”.
If I find something I like I plan on working P/T to fund a Roth IRA. I can make $7K working a few hours a week. Then when I start to draw those funds down they will not affect my provisional income. My pension is less than $17K annually so I should be good with the tax man.
Do you have any video explaining the new rule about the spouse taking s s.retirement from the other Spouse even if the are divorced but we're married more than 10 years. Tks
On mistake number seven, doesn’t the Social Security administration return that money to you when you are full retirement age?
Hello Geoffrey, I ALREADY SAW A DRAMATIC CHANGE!!! I received a letter from the SSA stating that THEY made a mistake and that I would owe them $3,500 with no other comment or explanation. So I sent a letter to the SSA in Birmingham (AL) with a request for an explanation. The “answer” was “SSA will pay $0.00 of SSA benefits until March 2023 with no other comment or explanation. The teller at the local SSA responded with “It’s all your fault. It’s in the computer”. Asking “Why” and “What went wrong” was answered with “I don’t know”. I feel like legally “RAPED” since the SSA “IS ABOVE THE LAW” and can come up with ANY CLAIM at ANY TIME claiming ANY AMOUNT with NO EXPLANATION and I will NEVER see any SSA benefits for what I paid 25 years every month. PLEASE ADVISE. THANKS.
I'm so disappointed I put money into a 401k. I should have done roth.
ROTH is particularly good when your income is going up
@@HolySchmidt It's too late for me! Save yourselves! It's almost as if, to get a net out amount out of my 401k, I need to withdraw almost double what I need.....
So in other words we should just work our life away so that the government can keep all the extra money that we don’t collect because we don’t get enough money after working for 50 years in my case and I don’t have anyone that can collect my social security when I pass away.
I am a nurse and I see A LOT people dying in the 60's,
I just lost my best friend at 70. He had hypertension, diabetes and was obese. Massive stroke. I lost both my in-laws last year. Both over 95 years of age, both of sound mind to the end. Any health care pro is going to see a lot of death. I worked in a nursing home 50 years ago. All my customers ended up dead. Some 60s, most much older. I am fit and I walk daily. My mom almost hit 94 and did not have great health habits. I expect to live past 100.
Holy Schmidt!, I'll bet firemen see a lot of fires also!
I had a younger sister die at 63 and a brother die at 77 in the last few months. Neither was from covid. My best friend growing up died at 62 after he retired at 58. He had a very stressful job.
I’m a RN and I’ve seen a lot of people die at all ages, especially after 70. My parents are 90 and 91, they have outlived most of their friends and acquaintances. They are still active(driving, gardening, shopping and Sunday services) and their mental acuity is still sharp. Dad took SS at 62 and mom(RN) at 66 and continued to work until 70.
You counted the investment of the excess income between age 62 and 67. But you failed to credit the 5% return AFTER age 67 on the incremental money of 80,367. 5% return on this is 4018.35 in a year. This is 334.86 per month. So the difference is not 607 but 607 -334.86. If you did, the gap between what you earn at 62 and 67 would go down significantly. The break even age then becomes 96, not 82.
If you are working then due to SSN rules, it makes sense not to withdraw. But if you retired voluntarily, then however you would have supported yourself between age 62 and 67 while deferring social security, you would do it the same way. You probably have sufficient investments in your ROTH, 401 K and brokerage accounts or a job that gave you pension.
Isn't it true that once you hit your 67th birthday, there is NO limit on your work income and you can work full time AND receive full SS payments. It seems so many people leave this out, and instead emphasize the less important point that once you enter the calendar year of your 67th birthday the payback switches to the less punitive 1 for 3. For example, my birthday is in April, so the amount of SS received over the limit is paid back at 1 for 3 for Jan through my birthday in April. Then after my 67th birthday in April there is no payback and I can work fulltime and receive full SS. Isn't that right? I hope I'm right in understanding that.
When people refer to immigrants and SS, I think they are referring to SS Disability, and this I have personally seen as well as other entitlements.
SS Disability requires investment into the program also.
@@SandfordSmythe Not if the person is under 18!
@@happycook6737 Parent's investment then.
Oh oh oh! I thought you were saying that, above $44K (from the 2021 data), Social-Security Benefits are taxed at an 85% rate!
I gather you’re actually saying is *_85%_* of those SSBs are taxed *_at normal rates_* (as normal income).
Needless to say, that’s … much less-objectionable!
For me 62 I don't want to leave anything on the table
Exactly. Invest into a mutual fund or something that gives about 5% like he said.
I’m lucky to have a pension and 457 retirement account that I withdrew to pay off my house. I’m living off my monthly pension in a mortgage free house at 61. Not sure if that would decrease my SS benefits when I file at age 62. Hopefully I made the right decision.
Not fair to individuals (parents) who stay home to raise babies, or home school. Sadly this is American culture that does not value unpaid or underpaid work of women.
Amanda...u don't have to answer..but..what is your self- employment position? ;)
I am planning on taking my social security in 5 years When I'm 65. I had 60 thousand in a 401k from my last job that I rolled into a IRA when i changed jobs. I thought about taking 15 thousand out each year for the next 4 years so I wouldn't have to pay too large of taxes on it. I would then put it in a savings account. Do you see any problems in that idea?
Get rid of the picture frame behind your head!
0:59 - “Earnings limits”: Are withdrawals from your 401K classified as “earnings,” or do these “earnings” only include salary and wages, such as from a proverbial “side hustle”?
Can I hire you as my personal fiduciary/financial advisor?
My wife is claiming her social security starting at age 62, when I turn 67 she will switch to 50% of mine. This is known as the split strategy. Can you address this please?
Works if your wife dies young and/ or her benefit is small. Run the numbers- it might pay to wait a year or two. WE are.
@@deanbarnett1502 It might be a good idea to get counsel. I did, over four years ago when I was about to turn 62. I was planning on claiming early because I did not want to "miss out" on "lost" benefits. I did not need the money, I was just upset that it would take me 143 months to "Break even". I found a guy who gave me 2 FREE one hour sessions and he changed my course. I am now 66 and still waiting. My wife is 65 and she is going to wait for FRA or perhaps a little longer. We don't need the $$ right now, we will need it 10 years from now. "Don't worry about breaking even, worry about being old and broke". That guy is in NJ but he will zoom with you if you are interested.
No one ever advises to take a lower paying, 40 hour basic job with healthcare. Nobody. That's an alternative to taking ss at 62 and paying for healthcare, assuming you are fine with your 35 highest paying years. My life expectancy is 90+ so aiming for 65.
I did not discover until a few years ago that social security depends on income, hahahahaha, isn't that funny! I just thought it happened! I got a job at 60 that pays a pension after 5 years of credible service, so after working 6 years as somewhat part-time, I will be eligible. I started getting social security last year, and just used it to finish paying my mortgage off, otherwise that would have continued until I was 73 (don't ask me why I thought a 30 year mortgage sounded good at 43). Now, my house is paid off, and I am working on two things, fixing a few things up, and that pension, then I will retire. I like money, and I like to play, so, I feel like I am still able to have both. Thank you for this video!
remember the prorated SS benefit increases ever year after 62 until you get the full amount when you are 67.
Could you give some information about when to start using your 401K and or ROTH IRA funds? Do you have to start using these funds or get a penalty? Thanks😊
Can you receive S S I IF YOU HAVE AN ESTATE ACCOUNT FROM YOUR MOTHER?????
Unless your still working I always suggest that one start SS at age 62! Some people if they waited till FRA would need to live til they reach their mid 80's just to break even and that did not include putting the money in interest accounts or stocks and bonds which make it even later!! Take it now! Dont need it? Invest it!!
Does it help if you make more/better money in the early part of your working years? I worked 10+ years in manufacturing between 1992 and 2003.
THANK YOU! I am just starting my SSI application journey and am looking for experts to listen to. With my life, and the way it usually goes, I know that if left unguided, I will do all of the irreversible mistakes that can be made. I can only hope to avoid a few of them today. Again, thank you.
Here 2 years after the video dropped; Obligatory Liked and Sub’d 👍▶️
I waited till 63, sold larger house to downsize, now 3yrs later, I OWN a smaller house and truck, zero dept and still have not touched my IRA accounts. I rather collect at 63 and be happy than wait till 67, he never mentions fact you get 5 years of SS money ti live on if not wait till 67.
Regarding my wife filing for her spousal benefit, how old does she have to be to file? Will her spousal benefit be higher if she waits to file? How do they determine her benefit amount? For example, I plan to file at 70 and I expect my benefit to be $4000 per month or more. If my wife makes between 32-50% of this $4000 is that percentage determined by how old she is when she files?
From my research I believe your spouse will get her highest spousal benefit if she waits until her full retirement age. She would then get 1/2 of your "full retirement age" benefit, not what you get if you wait until age 70. Also, she can't get a spousal benefit until you start taking your benefit.
I just happened to see your videos tonight, and now I am hooked! I am turning 64 this month and have some decisions to make. What I really like is that they’re the right length, so I can watch several as if I am reading chapters of a book that I can put down and return to at any point, versus sitting through a long 30-minute lecture. Keep up the great work!
Thanks for the kind words
I'm a 100 percenter from Vietnam service and get only $950 from SS
I can't retire anyhow. So I'm getting every dime I can. I'm 60, and my husband died 10 yrs ago so I'm getting surviver. When I reported my income they were so nasty telling me it's not worth it. Now that I've gone through the whole application process. I'm not changing my mind now. If I only get 3 to 5 months a year, that's money I wouldn't have if I didn't apply.
I got to be honest, it seems like most of your advice is for those that made $100,000 or more. That's not even remotely close to median income for a single person right? So what I find out is most of what you're talking about it's not applicable to me.