Should I Collect Social Security Early and Invest It?
Вставка
- Опубліковано 8 лис 2021
- Our topic on this episode of the Ready for Retirement podcast is about understanding if you should collect Social Security early and invest it.
Questions answered: What are the benefits of collecting Social Security early? What are the benefits of delaying Social Security? Should I collect Social Security and invest it to attempt to achieve a higher return? What is the best approach for my individual situation?
Are you ready to start focusing on the things that truly matter when it comes to your financial future?
Free Retirement Checklist Here: rootfinancialpartners.lpages....
SUBSCRIBE HERE: / @rootfp
_ _
For more resources and content, check us out below!
Website // rootfinancialpartners.com/
Podcast // readyforretirement.co/
Instagram // / rootfinancialpartners
Facebook // / rootfinancialpartners
LinkedIn // / 18347030
Other videos we think you'll like:
Why I Started Root Financial Partners // • Why I Started the Read...
How Would You Feel If You Knew You Could Retire Today? // • Why I Started the Read...
What Makes Our Approach Different? // • Why I Started the Read...
Collect early!! Tomorrow is never guarenteed!!
Truth! I am retiring as soon as I can.
@@tessa1158 yes but retiring is different in collecting Social Security. There are different factors between retiring and when to collect Social Security
Tomorrow is never guaranteed but statistically at 62 you live another 20 years. Of course you know where you fit in the statistic better than anybody else but you don't know where anybody else fits in this statistical average
@@johngill2853 6
You can collect approximately 8-10% or more (depending on COLAS) each year you delay collecting SS, and that’s guaranteed. I’ll take that all day long! I do know people that took SS @ 62 , invested that money over the past 7-8 years and have done quite well and it was a good choice. Of course they were investing that money during the greatest stock market run up in history. I have no confidence that we’ll see those returns duplicated soon.
The bull market from 2012 to 2021 was definitely freakish. My 403b was growing 14.0% most of these years. But 2022 is going to be horrible - at best, break even if stocks can make a comeback by the end of the year.
Excellent presentation, James. You covered all bases. I hope to retire from Federal service next year at age 60 after 36 years, with a pension. I plan to delay Social Security until FRA of 67 (estimated $3k monthly benefit) by drawing down 6-8% from my Thrift Savings Plan from age 60-67, then take nothing further from the TSP until Required Minimum Distributions kick in at 72. This, I believe, will greatly lower my taxes later on since I live in the retirement-friendly state of Virginia.
I'm glad you liked it, Frank!
Epic video and breakdown 👍🏼💪🏽🙌🏽🙏🏼👏❤️
Best description I have heard so far…opportunity cost
I always hear financial advisors say that it’s better to take Social Security out later but they never really explain why and what the different factors are to consider. I love that you explained all the different factors involved in the different options. thank you so much!
You’re welcome! There are lots of variables to consider so it’s never as simple as just saying wait as long as possible.
James is the best! He explains things in a simple and easy to understand manner; he is an excellent teacher. I am extremely grateful to James for taking the time to educate the average working man on main street; we are extremely grateful and will be forever indebted to him. Much love and peace to James.👍🏼❤🙏🏽☮🕉
Great information. There are two unknowns, whether the market will have consistent returns and whether one can live till 90s. With these, there is no easy decision
Great information as always James, thank you. What I like about your videos and podcasts is that you give clear information for us, the listener or viewer, to absorb and then make an informed decision. As opposed to, this is what you should do, follow my plan. Thanks!
Thanks for the feedback, Chris!
Wonderful insights. Thank you!
You’re welcome!
That was a wonderfully informative video I heard in awhile. It covers so many different scenarios. So much to consider
Glad it was helpful!
Great content. Thank you.
Glad you enjoyed it!
Great information
But I would have stressed the taxes more, especially to Lower RMDs for some. This is a gigantic reason for me planning on collecting at 70
Good scoop!
Thanks James!
We are kicking this around now with my wife. She is 67 now and at full age for retirement. Since I am working and getting a teacher retirement from another state, I am thinking she could get SSA and I could load in full into my 403B or fund her 401K. My other option could be putting in her Roth (but that means we have to pay IRS tax now). So many options...
So, why is this such a big topic of discussion, when the actual difference, no matter when you take social security, is mathematically minimal? Most of the biggest proponents of taking social security at 67 (+or-) or 70, seem to completely omit the fact that, as you mentioned, that money would have to come from somewhere (work, large pension, or 401K type accounts) and the opportunity cost of using those funds, rather than investing them or keeping them invested. The biggest, most important variable in the equation, seems to be lifespan. So, I think I'd have to go with taking the money I can't control (social security) first and keeping the money I can control (401K, etc.).
Thank you for this clear explanation! I think we're going to get busy living out of IRAs and doing Roth conversions while we wait to take SS.
Glad it was helpful!
I believe that one would need substantial ROTH saving before attempting a "file, invest, and don't spend" SS strategy. If not, living off of only taxable IRA or 401(k) distributions and collecting SS benefits might create tax issue, especially if you're single.
I was just looking at my SS statement and if I wait until 70 to collect SS I will get over $18000 more a year if I were to take it at 62. I am 7.5 years from retiring and looking at taking SS at 70 depending on my health when I retire. I will live off my pension and look at doing some Roth conversion with my 401K and IRA. Once I start collecting SS I should only have to pull 1 or 2% out of my investments to keep up with inflation. If my RMD's require me to take out more than I need to keep up with inflation, I would invest them into a taxable account. Great video.
And what if you die at 69? Then your loved ones get 0.
@@bruced.370 Could die at 61 and they wouldn't get anything. I will have to see how my health is when I reach retirement age and go from there. Might also live to be 100, you never know.
I’m glad you liked it!
Biden administration already said SS will probably only last through 2035. I rather get less right now but something and not wait and get nothing.
It’s income you have to pay taxes on unless there is an offset investment credit. With inflation running now at 6% or higher are you making money?
How does one transition from SSDI to spousal SS retirement benefits ?
⭐⭐⭐⭐
I retired at 62. I was in IT and got fed up with having to move all over this country to find crappy contract jobs and paying too support two households. My hubby is able to retire at 66.5 but is going to wait until 67. Nobody knows how long they will live.
The video isn't about when to retire but when to collect Social Security. They are two different and separate decisions
What vehicle can give you between 6 to 8%?
There are many stocks that pay 6 to 8 and even 10% and more with low risk. You just have to take the time to do the research. Here are two - THW and USA.
If start. Collecting sss at 62 and my husband start collecting at 70 when he pass will I get his sss because it higher than mine?
Yes
Yes
Please show me anyone who knows exactly how long they’re gonna live.
I’m 64 and planning to retire before my full age of 66 and 6 mos, because I rather get a little less before they (Biden administration) gets rid off SS. According to recent news most likely they (SS) will run out of money by 2035…
James, what are your thoughts on that?
How does Social Security run out of money?
You mean there will be a shortfall and this isn't a mathematical problem to fix it but a political problem. Social Security is very easy to fix mathematically the only question is who pays for it. Historically changes in Social Security don't affect people who have choice of when to collect.
It's Republicans who keep threatening to cut and "sunset" SS. Biden has pledged to defend it and extend its viability until the 2090s.