Social Security is important for many seniors, but it’s also crucial to plan for retirement with smart investments. Diversifying your investments helps grow wealth over time. It’s never too early to start saving and investing for a secure future. I'm 63 and my husband is 65. We’re both retired with over $3 million in net worth and no debt. We live frugally and earn monthly passive income, which makes our early retirement possible.
Congrats on your early retirement! I’m looking for investment advice. Last year, I hesitated and missed the opportunity to invest, but this year, I’m determined to try something new and open to different ideas.
It's wise to stay proactive and diversify assets to manage risks during uncertain times. I’ve delegated my financial management to a consultant after facing a major downturn in late 2019 during the COVID outbreak. Today, I'm semi-retired and about 25% short of my $1 million retirement target after making additional contributions.
sure, you get more if you wait until 67, however it takes roughly 12-14 years to see the gains from delaying taking SS at 62. So 67yrs old plus 12 is 79yrs old. Most people are slowing down or possibly even dead by 78 or 79 years old. I would rather have the smaller amount and be able to use it between ages 62 and 79 years old.
Most people are not dead by 78 or 79. The average life expectancy is only a number it doesn't mean most people die by that age. It is not a statement of how many people die at that age relative to the number of people of the same age who do not die. It is the average life expectancy meaning the average age of all those who die in a given year. So it includes the oldest and the youngest among us and everyone in between who die in a given year. It doesn't mean that most of us die by the time we are 78 or 79. Not even close.
@@oleeblove the optimism family history dictates an about life cycle there are exceptions to everything. but do note the planet is more toxic now than even 30 years ago. that factor alone has shaved years off the average we would have gotten even with the medical advances of today.
I'm retiring in next month. I will be 65 and delayed taking SS as long as I can. My job is being phrased out and I don't want to use my IRA money to wait to get to 67 (My FRA). I will be signing up for Medicare in March 2025 when I will no longer have health insurance from my employer. I'm praying The Lord gives me 20 good years where I'm active and don't need my kids doing anything for me. I don't want to be a burden to my wife or kids. My goal is to lose weight and plan a trip around the country riding AmTrak train from Chicago to New Orleans to Los Angeles to Seattle to Chicago
One other benefit available to families is the Child Benefit. I found very little information when researching for my own family and it can be confusing. I would love to see more content on this subject as I feel this is extremely helpful for parents of children with disabilities, older parents or grandparents who have adopted and raised their own grandkids. Thanks for always making personal finance easy to understand and accessible.
Excellent content! I began my Social Security journey in 2023 when I hit FRA. In 2023 I maxed out my contribution for the 13th year of my 50 year employment history and added $55 per month to my monthly payment. In 2024 I fell far short of the contribution maximum but, since much of my earnings history was prior to a nine year state employment, I will replace a really poor adjusted year and increase my monthly payment by about $12 per month. Most people don’t know they can increase their monthly payment, add to the Social Security coffers, and keep money on their retirement savings. I’m into the 15% bend point so my contributions now won’t pay off in payments during my lifetime.
I am in my 50s and just wanted to say that really appreciate your content, and I am learning alot as I get serious about planning for retirement. Thank you!
Extremely informative. I knew most of it but learned a few things, too. Thanks. Sidenote: I tired of moving my Encyclopedia Britannica set around the world in about 2014 and sold it. Recently, I've begun to miss it again. I'll have to keep an eye out at estate sales, etc.
I was a low wage earner and after medicare deductions I only make 949.00 a month. I'm amazed at how much some recipients actually get. Pretty tough making ends meet but I guess that the gap in earnings remains the same both before and after retirement. At 73 and with inflation eroding my monthly check, I don't have much to look forward to.
@sg3971 have you checked on getting a SSI. I think if you make less than what you’re making you should get SSI. Watch Dr. Ed Weir. He’s live stream is everyday.
I was awarded SSDI at 62 . Worked since 12, and SS started taking money out of my paychecks at 15 years old. Never made over 75k with my airline career of 37 years. In 2025 will get 2,727 a month net after the 185 monthly going to Medicare. Good thing with SSDI I get my FRA at 62, now 64 years old. I still would rather have my health and still flying the world as a flight attendant.
Thanks, this explained a lot. I retired this year at age 62 and my check is a bit over $2100 per month (2024 amount). I was wondering how I managed to pull that off and you explained it - I had higher earnings earlier in my career (45 years in the workforce, 17 of those years $50-85000 annual salary, 5 other years over $40000) which put my numbers up high for calculation purposes once you factor in the multipliers. I've made it a point to check my SS statements every year for several years, which is how I knew I could retire at 62 and still have a reasonable check.
I've done the same thing as you. I checked my SS totals and projected payments for several years while earning between $55K to 100K. I retired in 2018 at 62. My net now after Medicare B deduction will be manageable combined with my pension of January.
So u have huge investments some where cuz $2100 ain’t reasonable unless u live in a cave I would say $5K is reasonable if u owned everything outright including a couple late model cars
Can say from personal experience-am disabled-heart problems, back, legs& feet problems-took 4 1/2 years to get my disability to begin with-I had the 40 credits needed-my paycheck now is 1260.00 a month, with the 2025 raise-makes things extremely tight
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
More reason I enjoy my day to day market decisions is that i'm being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to
talking about coaching, do u consider anyone worthy for recommendations? I have about 80k to taste the waters now that large cap stocks are at a discount... thanks
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Melissa Terri Swayne turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I maxed out credits long ago and one of the reasons that it contributed to my decision to retire early a few years back. Working until 62 would have done very little to add to my SS payouts but would still be paying in over 100k in SS payments - so I bailed out of the work force.
Really good video. I've spent a lot of time understanding how SS works and, once again, I learned something new from you. I did not realized the spouses reduction was more than the primary at the same ages.
My husband collected for 12 months before passing at 63. My pension started to reduce after 62 so I retired at 62. Everyone's story is different and so for social security.
Just retired after 44 years in October. I worked 6 months past my 66.5 full retirement retirement age. My SS is $3300.00 per month. It's a big adjustment. I have around 7 investment streams I setup up because you cant make it on SS alone.
Ok. Where do live? That is about what I would receive. I am 63. I am thinking of downsizing whereby that would go to almost all of it. Yes I have other buckets
@sburger1685 Utah But that $3300.00 is just my SS alone. A person wouldn't get that amount at 63 because of the reduction. The maximum SS in 2024 is $3822.00 at full retirement age.if you have other income streams then great. Also you're going to need medical insurance which isn't cheap either. Good luck.
@@wheels636 yes I realize that at 63 you won’t get that at 63, I gave that age as a reference for me. Haven’t downsized yet either. Don’t know where you live or want to live but the expense thing is the big one. Health care I have figured in already- not that big unless you let your health go in the can. Better to be healthy than chasing dollars. Seems to be an awful lot of Fud being pumped. I have seen numerous people living millions behind that they could never spend cause they just died!
It’s definitely worth meeting with SS to discuss your calculation. My online statement is wrong. The increase from age 67 to 68 is only 5% instead of 8% which then impacts ages 69 and 70 as well.
As he said in Taxi Driver “Are you talking to me”? If so, are you insinuating I don’t know how to read? The increase on my statement from age 67 to 68 is 5% (which is wrong). Me stating it is not wrong. Duh.
I used to work two jobs I kept I wanted to keep my wife home for my kids I think she stayed home for 5 or 6 years maybe a little more and then after they were all in school she got a job I got to put a she got a job.
She did go to work she gets her own social security when I die she'll get my social security if I die before her if she dies before me I still get my social security a mine is like three times higher than hers.
It's easy. Medicare is $185 a month deduction, unless your AGI is a lot higher. There are I believe 5 range steps based on AGI . I am now managing my parents money, and they get less per month as SS taxed and my dad receiving a hefty monthly pension affects how much more he gets deducted for Medicare. Next year will be a whopper, as I sold off some of his stocks this year, and plan on more next year.
Thank you Sir for the great information about SS. Are there any added benefits to SS for veterans? I only served one enlistment in the Air Force, but I heard that SS adds a small monthly amount for service. Is that true?
But the guy paid in 9 years and they say the fund is running out of money there are so many people who work and pass away without ever taking a dime. But congress says the fund is going broke, no the fund has less money for them to dip into
My plan right now is to take SS somewhere between 67-70. I just turned 59. I am 100% retiring from my job with a pension at 67 Id like to work a pt job for a few more years but who knows how ill feel in 8 years
There is an advantage by drawing early and that is you are using less of your savings letting it grow. Yes SS goes up 5% a year but the stock market goes up on average of 10% a year for the last 100 years. My self I have not decided if I will fully retire at 62 or 65. If I retire at 62 I will have to pay for full health insurance when its the most expensive. If I wait until 65 I can have my employer pay for the vast majority of my health insurance premium and then let Medicare take over at 65.
Not to sound stupid but where do we find the base figures you spoke about early on in video? Points etc. in order to figure it out ourselves. Does the SSA have our figures in place that we can look it up and see, maybe their website or calculator ?
I think you misstated at the end there. I am seeking the survivor benefit but I want to draw only hers for now and not my own which is higher. I’m allowed to choose in order to switch at 70 to a much higher personal account. The SS agent even told me I can do it this way. You stated that they pay you the higher amount which is not necessarily so.
You are correct. Survivor Social Security does not increase after full retirement age, so there is no benefit in not taking it at FRA. You can allow the personal Social Security to increase for three years and take it at 70.
Unfortunately you can’t take both your benefit and the survivor benefit at the same time (that was the comment), but you can take the higher of the two (which includes letting yours grow and switching :).
@ OK, thanks for your help in these matters though. It appears you have a good heart and are trying to help people even when there is no benefit financially to you. This is why I’m a subscriber. 🎅🎄☦️
@@HolySchmidt And, on this same survivor benefit point, I've always been told my wife would receive ("inherit") my entire, current, COLA-adjusted, age 70 monthly benefit payment at my passing, not just the payment I would have received had I started collecting at age 67 (my FRA), as I believe you state in your video here. Which understanding is correct, please? If you're right, then the "wait 'til age 70" argument for the higher earning spouse just took a big hit from what many advisors have counselled in this situation. So, I'd really appreciate your definitive say here, one way or the other. Many thanks, in advance.
I worked intermittently and mostly was a stay at home mom. My ex worked full time. After 36 years we divorced. I tookSS at 62 because finding jobs with no career and with health issues is hard. He made great money, over 70k per year for 20 or more years. Yet they awarded me 400 for mine, and only 900 for his. Is that right?
Great video. I was comparing to my numbers....are your bend points correct? Looks like you are spanning across two years of data. $1,226 and $6,165 are good, but the last value should be $7,391.
What about windfall? I spent most of my working life in a pension program. I do have the 40 quarters but don’t think I will end up with much of anything. Is there anything I can do? Plan to wait until age 70 to maximize the amount I get.
HR 82 just passed…347 YEA votes! Now…S 597 needs a VOTE…to repeal: WEP and GOVERNMENT PENSION OFFSET….asap! Currently: 62 Co-Sponsors. . My deceased husband PAID IN....and I DON'T get ANY of his larger benefit! I taught Title 1 Reading to impoverished kids in MO. and KS. I need my SURVIVOR BENEFIT as a widow….right now!
One confusing thing here was the effect of work after starting to collect ssi. I thought that you got penalized for earning above a certain threshhold for all years on ssi, and that income from IRA/401k withdrawals counted. Not so?
Great content, as always! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
I worked from ages 27 to 47. I work for a city agency where I was able to collect my pension immediately. I’ve lived off my pension for the last 15 years and just started collecting at 62. 2650 a month.
@TheGarageisFull ~ Dang; that's pretty impressive! Sounds like you really knew how to get the most out of your working income, and, later pension - especially to be able to retire at 47 with a pension! I have a much longer work history specifically at at law firm for 22+ years, then on & off due to the recession of 2008, then back to work until November 2021 - when I chose to resign. I didn't start collecting my Social Security Benefits until I was 62 & nine months; and, I'm definitely not earning $2,650 a month. With that, I wish I'd been far more calculated in my approach to retirement, Social Security, etc. 🫡
@ trust me I didn’t plan it this way. It just fell into place. Since this is my first year collecting Social Security I’m having the 22% taken out just to see what it looks like on my taxes.
I worked as a public school teacher and will draw a pension benefit. I also have more than 40 credits in SS. What is my penalty for having the pension? Can I still draw social security?
Do those indexing factors get updated each year to account for inflation. Example the indexing factor for the year 2000 is going to be higher in 2024 than it was in 2020?
They are tied to average wages, not inflation. In general wages increase more than inflation, so this is a plus. But the adjustment stops once you reach 60. After that you switch to the COLA, which is determined by inflation, but that only starts at 62, so there is a two year gap where you aren’t getting any kind of adjustment, although if you’re still working you will probably get some benefit from the higher wages replacing part of your history. Anyone who hit 60 in the last few years has been hit hard by this (which is why I know…) The factors are updated every year though.
Great explainer! Re: Survivor benefits, the surviving spouse can claim their own benefit early then switch to their survivor benefits when they reach fra, allowing the survivor benefit to grow to 100%. This is true even if (especially if!) the survivor benefit is already larger. It's the claimant's choice, not Social security's choice but yes, you can only get one or the other.
@@marygillespie2028 Again - this is because if you'd been paying into SS your whole life your own benefit would have been higher than your spousal benefit. The higher earning spouse in a couple who are both under SS doesn't get a survivor benefit either.
When you find UA-camrs speaking 100 MPH, go to the gear wheel at the bottom of the video. There is a playback choice. Normal, faster, slower. You can also increase slow talkers.
@bobinthewest8559 ~ Perhaps do a little fact checking, but I believe if you either wait until 60 or 65 to remarry it doesn't affect one's divorced spousal benefits - but again do some thorough research ... 😉
One or the other, not a combined amount. Sometime the SSA says you get your benefit plus an additional amount but the total is not going to exceed 1/2 the spouses benefit. If your own benefit is more than half of theirs you should get that amount automatically. Special rules (discounts) apply if you start to collect early.
It might be a stupid question. But does your social security go down? If I quit working at 64 and live off my pension and cash in the bank, but don't collect my social security until 67. Will those three years of zero dollars earned hurt my social security checks
SS is based on your highest 35 years of earnings. If you could earn more now than you did in three of those 35 years (for example, early in your career), you would increase the amount of your Social Security check, but probably not enough to make it worth working three extra years, unless you really love your work.
@Geof, very Interesting video! It seems that the Government manages to make everything having to do with taxes SO complicated that many of their own people will not come up with the same answer when asked the same question! I wonder if you know whether or not indexing has always been used since SS was started and how it might have varied during years of very high inflation such as the 70's? Although someone who worked back then has likely had many years of higher net income, it isn't a linear line up for many of us. If SS stops indexing at age 60 and uses the higher adjusted income for 35 years, someone who began working at age 18 continuing through age 60 would have worked 42 years. I believe the minimum wage was $1.65 during the later part of the 70's and general pay for workers was considerably lower on a non inflation basis.They don't make your adjusted, indexed income available through their website at least in your own account pages.
My wife is a long time high earner and so should qualify for a larger social security check when she retires at 67. That will occur in 4 years. Will that higher amount payment be reduced if her spouse (me) still makes over $150k annually from investments? If yes, is there some financial mechanism I can engage to prevent her payment being reduced?
If you actually maxed out (made as much or more each year as they require you to pay ss tax on) then you should max out on payments if you're full retirement age and get about $4168 per month in 2025 or maybe more if you wait until age 70 to collect (+ inflation adjusted amounts).
Hi Geoff, Thank you for your recent video on social security. Is income from qualified or non qualified dividends considered income for the purposes of forced reductions in my social security benefit if I retire before full retirement age?
Dividends are not wages or self-employment income, which is what reduces your benefits. "[non] qualified" dividends just refers to whether or not it qualifies for a more favorable capital gains tax treatment.
I would like to know if the guy that quit after 9 years making $125,000.00 decided to go back to work for a year at 64 making $30,000.00 to start collecting social security at 65 how much would he get?
A question. What if you are like me, and your wife is 29.5 years younger. Let’s say I die before she is 60. Can she start getting a survivor benefit at age 60? Or does she have to already be 60 when I die?
@cindyboane1951 ~ If you were legally married for at least a full ten (10) years you are entitled to divorced spousal benefits; one or the other - if your regular Social Security Benefits are higher you wouldn't collect or add to the monthly amount you'd receive. Also, your former spouse's Social Security Benefits would not be affected, nor would they even be made aware you were receiving anything from said benefits. ☺️
You continue to pay ss and Medicare taxes on your earnings...if your current year of wages is one of your highest 35 years then you might get an additional slight adjustment on your payments next year or when ssa adjusts it for you you might have to talk to them but I think it's automatic. If it isn't one of your 35 highest then nothing happens you continue your same benefits with cola adjustments.
I just took Social Security at age 70. I am still working so I can replace lower earning years with higher ones, as well as earning rather than spending for a few more years.
I want to keep working until 70. If I draw SS now, and keep working, will my benefits continue to increase, to compensate for lower earnings years? My statement from SS indicates my approx. earning if I continue to make an indicated amount on the statement. I have a few years where I made only $3000ish a year, but have increased that over the past many years, so I'm trying to erase those earlier years by having a higher income established.
How the hell can anyone retire early and collect social security when they cap your earnings to about 23k per year and then penalize anything above it for the rest of your life???!!!
The earnings is based on wages or self-employment, not pension, dividends, capital gains, etc. So if you're *working* and earningmore than 23K a year, are you really retired? Having said that if the $2 for $1 phase out is substantial for you (earning well over $23K a year before FRA), it probably makes little sense to draw SS before your FRA. While you'll get back any SS withheld due to the phase out, your monthly benefit amount will still be permanently lowered over the rest of your life. It just doesn't math out.
My question is regarding spousal benefits. I plan to continue working at least to FRA but my spouse is two years younger than I am. She works part time only. Would it be a mistake for her to file for SS benefits now rather than waiting for me to file? She does have 40 work credits of her own.
Unless you KNOW you are living past 80 years old take the money as soon as you can. The math has always born that out. And, even if you think you will live past 80, don't you think, in the intervening 18 years, that you won't improve your lot in life? Plus, who's to say it will be there anyhow? You paid in your entire life, why let them keep it earning interest? LOL Even if I lived to 90, that'd only be either 19% or 28% gains on the WHOLE *for those last ten years*. Honestly, it could be worth it, but not for me.
This was a very informative and I think accurate video. What I'm concerned about is the cuts that are going to happen if the politicians hand Social Security over to Wall Street or if they don't find a way to refunds the trust account. As early as 20:32 I believe people will get an automatic 33% cut unless they do something! This is horrible and I'm so tired of politicians waiting to the last minute, so I'm hoping that Donald Trump will propose removing the cap for high wage earners and have them pay social security tax on all of their earnings just like the average person does. I am not opposed to people making high wages but that is really the best way to make sure that the system is funded properly. If we don't do something soon it's going to be really really difficult for the average person.
@@Savannah-ed4rv People would be getting double or triple the amount of the current benefits had the government not "borrowed" social security surpluses and they had been invested back into America via the stock market. And the government (us) wouldn't now owe trillions back to social security and the economy would be larger benefitting us all even more. Then we could welcome in even more migrants and help more of the world. But instead those funds were "borrowed" and used for boondoggles like the big dig in Boston.
Thanks!
Thank you!
Social Security is important for many seniors, but it’s also crucial to plan for retirement with smart investments. Diversifying your investments helps grow wealth over time. It’s never too early to start saving and investing for a secure future. I'm 63 and my husband is 65. We’re both retired with over $3 million in net worth and no debt. We live frugally and earn monthly passive income, which makes our early retirement possible.
Congrats on your early retirement! I’m looking for investment advice. Last year, I hesitated and missed the opportunity to invest, but this year, I’m determined to try something new and open to different ideas.
It's wise to stay proactive and diversify assets to manage risks during uncertain times. I’ve delegated my financial management to a consultant after facing a major downturn in late 2019 during the COVID outbreak. Today, I'm semi-retired and about 25% short of my $1 million retirement target after making additional contributions.
@@ThomasChai05Hope you don't mind if I ask you to recommend this particular professional you use their service?
*Izella Annette Anderson* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for the info . Found her website and it really impressive
sure, you get more if you wait until 67, however it takes roughly 12-14 years to see the gains from delaying taking SS at 62. So 67yrs old plus 12 is 79yrs old. Most people are slowing down or possibly even dead by 78 or 79 years old. I would rather have the smaller amount and be able to use it between ages 62 and 79 years old.
Exactly, my break even if I take at 62 is age 78.
I'm taking my $2500 SS now at 62.
I expect to live into my 90s so for me I’m waiting to 70.
That’s it after all are hard work they banking on us to die before retirement that’s why they keep raising the primary retirement age that sucks 😟
Most people are not dead by 78 or 79. The average life expectancy is only a number it doesn't mean most people die by that age. It is not a statement of how many people die at that age relative to the number of people of the same age who do not die. It is the average life expectancy meaning the average age of all those who die in a given year. So it includes the oldest and the youngest among us and everyone in between who die in a given year. It doesn't mean that most of us die by the time we are 78 or 79. Not even close.
@@oleeblove the optimism family history dictates an about life cycle there are exceptions to everything. but do note the planet is more toxic now than even 30 years ago. that factor alone has shaved years off the average we would have gotten even with the medical advances of today.
I did not hear one significant thing in this video that I did not already know. But hearing it from Geoff made this all worthwhile. Thanks!
Thanks for the kind words
I'm retiring in next month. I will be 65 and delayed taking SS as long as I can. My job is being phrased out and I don't want to use my IRA money to wait to get to 67 (My FRA). I will be signing up for Medicare in March 2025 when I will no longer have health insurance from my employer. I'm praying The Lord gives me 20 good years where I'm active and don't need my kids doing anything for me. I don't want to be a burden to my wife or kids. My goal is to lose weight and plan a trip around the country riding AmTrak train from Chicago to New Orleans to Los Angeles to Seattle to Chicago
I'd be careful riding around on Amtrak as you may lessen your lifespan in doing so.
Better that you should hike or bike around the country. 😊
Get a complete round of "senior citizen" doctor visits while your workplace health insurance will cover.
Sounds like a great plan. I am right behind you. I will be 65 in July and will sign up for Medicare in April or May
Stay out of Chicago? It's crazy and unsafe.
One other benefit available to families is the Child Benefit. I found very little information when researching for my own family and it can be confusing. I would love to see more content on this subject as I feel this is extremely helpful for parents of children with disabilities, older parents or grandparents who have adopted and raised their own grandkids. Thanks for always making personal finance easy to understand and accessible.
Boom
I will have a 20yo & a 22yo when I’m 62.
I didn’t even have them that late. 48 or so.
They wouldn’t qualify as not disabled but they’re close!
Excellent content! I began my Social Security journey in 2023 when I hit FRA. In 2023 I maxed out my contribution for the 13th year of my 50 year employment history and added $55 per month to my monthly payment. In 2024 I fell far short of the contribution maximum but, since much of my earnings history was prior to a nine year state employment, I will replace a really poor adjusted year and increase my monthly payment by about $12 per month. Most people don’t know they can increase their monthly payment, add to the Social Security coffers, and keep money on their retirement savings. I’m into the 15% bend point so my contributions now won’t pay off in payments during my lifetime.
I am in my 50s and just wanted to say that really appreciate your content, and I am learning alot as I get serious about planning for retirement. Thank you!
Extremely informative. I knew most of it but learned a few things, too. Thanks. Sidenote: I tired of moving my Encyclopedia Britannica set around the world in about 2014 and sold it. Recently, I've begun to miss it again. I'll have to keep an eye out at estate sales, etc.
I was a low wage earner and after medicare deductions I only make 949.00 a month. I'm amazed at how much some recipients actually get. Pretty tough making ends meet but I guess that the gap in earnings remains the same both before and after retirement. At 73 and with inflation eroding my monthly check, I don't have much to look forward to.
I have a friend in the same boat as you. She barely gets by. Single mom raised two girls.
@sg3971 have you checked on getting a SSI. I think if you make less than what you’re making you should get SSI. Watch Dr. Ed Weir. He’s live stream is everyday.
🙏🏽🙏🏽🙏🏽
You should look into SSI.
I have lived with others on n off over the yrs. I will def continue to do so. No way can u keep on ur own for less than $5K a month.
I think I going to have to listen to this one again. So much to unpack
sounds good to me!
I was awarded SSDI at 62 . Worked since 12, and SS started taking money out of my paychecks at 15 years old. Never made over 75k with my airline career of 37 years. In 2025 will get 2,727 a month net after the 185 monthly going to Medicare. Good thing with SSDI I get my FRA at 62, now 64 years old. I still would rather have my health and still flying the world as a flight attendant.
I wish I was able to work I'd much rather be out working in the public socializing with people now I'm lonely all day and sure don't make much a month
Thanks, this explained a lot. I retired this year at age 62 and my check is a bit over $2100 per month (2024 amount). I was wondering how I managed to pull that off and you explained it - I had higher earnings earlier in my career (45 years in the workforce, 17 of those years $50-85000 annual salary, 5 other years over $40000) which put my numbers up high for calculation purposes once you factor in the multipliers. I've made it a point to check my SS statements every year for several years, which is how I knew I could retire at 62 and still have a reasonable check.
I've done the same thing as you. I checked my SS totals and projected payments for several years while earning between $55K to 100K. I retired in 2018 at 62. My net now after Medicare B deduction will be manageable combined with my pension of January.
So u have huge investments some where cuz $2100 ain’t reasonable unless u live in a cave
I would say $5K is reasonable if u owned everything outright including a couple late model cars
You explained more things that I've been wondering about in this video than most of the other videos combined. Thanks Schmidt
sure thing.
Can say from personal experience-am disabled-heart problems, back, legs& feet problems-took 4 1/2 years to get my disability to begin with-I had the 40 credits needed-my paycheck now is 1260.00 a month, with the 2025 raise-makes things extremely tight
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
More reason I enjoy my day to day market decisions is that i'm being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to
talking about coaching, do u consider anyone worthy for recommendations? I have about 80k to taste the waters now that large cap stocks are at a discount... thanks
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Melissa Terri Swayne turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Property Taxes are driving Soc Sec recipients out of their homes.. Those Taxes are endangering our livelihoods
Thanks!
Thanks Bryan!
I maxed out credits long ago and one of the reasons that it contributed to my decision to retire early a few years back. Working until 62 would have done very little to add to my SS payouts but would still be paying in over 100k in SS payments - so I bailed out of the work force.
@swit2732 ~ Good for you; I'm pretty certain you haven't regretted your decision!!! ☺️
seems sensible
Please do a video to explain the Windfall Exclusion and possible ways to avoid it.
I did not know about the indexing factor. Good to know.
Really good video. I've spent a lot of time understanding how SS works and, once again, I learned something new from you. I did not realized the spouses reduction was more than the primary at the same ages.
Ridiculous how complex it is. Infuriating that they stop indexing your income after age 60 when inflation is so high.
@@mafp22w Oh, that's an interesting point.
Thank you for this video. You answered so many of my questions and some that I didn't even know I had.
Glad i could help
This answers sooOOOoooo many questions! Thank you. Love the channel
You bet
Thank you for this very clear presentation!
my pleasure
Your videos are always very informative. Great job!
too kind
turning 61 this year. a lot to consider but thankfully all my qualifications are in place. the 23 k limit before taxation is interesting number.
Nice work
So much good information here! I would love to attend a seminar with Geoff.
you're too kind
Another good class, thanks. 🙂
you bet
My husband collected for 12 months before passing at 63.
My pension started to reduce after 62 so I retired at 62.
Everyone's story is different and so for social security.
Great answer. There is no “right time to draw” only the right time for you and your situation.
How blessed u r to get a pension!
Just retired after 44 years in October. I worked 6 months past my 66.5 full retirement retirement age. My SS is $3300.00 per month.
It's a big adjustment.
I have around 7 investment streams I setup up because you cant make it on SS alone.
Ok. Where do live? That is about what I would receive. I am 63. I am thinking of downsizing whereby that would go to almost all of it. Yes I have other buckets
@sburger1685 Utah
But that $3300.00 is just my SS alone. A person wouldn't get that amount at 63 because of the reduction. The maximum SS in 2024 is $3822.00 at full retirement age.if you have other income streams then great. Also you're going to need medical insurance which isn't cheap either. Good luck.
@@wheels636 Yep. Obamacare is BRUTAL!
Sure, you can if you don't have many expenses and live in a lower cost area.
@@wheels636 yes I realize that at 63 you won’t get that at 63, I gave that age as a reference for me. Haven’t downsized yet either. Don’t know where you live or want to live but the expense thing is the big one. Health care I have figured in already- not that big unless you let your health go in the can. Better to be healthy than chasing dollars. Seems to be an awful lot of Fud being pumped. I have seen numerous people living millions behind that they could never spend cause they just died!
It’s definitely worth meeting with SS to discuss your calculation. My online statement is wrong. The increase from age 67 to 68 is only 5% instead of 8% which then impacts ages 69 and 70 as well.
You're flat out wrong.
As he said in Taxi Driver “Are you talking to me”? If so, are you insinuating I don’t know how to read? The increase on my statement from age 67 to 68 is 5% (which is wrong). Me stating it is not wrong. Duh.
Online statements are often inaccurate. As you say, it's a good idea to meet with the SSA.
I've been trying to work a lot of OT to get a bigger check later
Seems like a good idea
I used to work two jobs I kept I wanted to keep my wife home for my kids I think she stayed home for 5 or 6 years maybe a little more and then after they were all in school she got a job I got to put a she got a job.
She did go to work she gets her own social security when I die she'll get my social security if I die before her if she dies before me I still get my social security a mine is like three times higher than hers.
Great video - when will you discuss the deductions the government takes from your SS check like Medicare, etc.? We really don't get the full amount.
It's easy. Medicare is $185 a month deduction, unless your AGI is a lot higher. There are I believe 5 range steps based on AGI . I am now managing my parents money, and they get less per month as SS taxed and my dad receiving a hefty monthly pension affects how much more he gets deducted for Medicare.
Next year will be a whopper, as I sold off some of his stocks this year, and plan on more next year.
You owe Medicare the money one way or another.
How can I see the actual formula for my numbers? Is there a place I can see how they decided my payment?
Hopefully, you can explain the Windfall Exclusion in the next video
Thank you Sir for the great information about SS.
Are there any added benefits to SS for veterans?
I only served one enlistment in the Air Force, but I heard that SS adds a small monthly amount for service.
Is that true?
But the guy paid in 9 years and they say the fund is running out of money there are so many people who work and pass away without ever taking a dime. But congress says the fund is going broke, no the fund has less money for them to dip into
Thank you!
So informative!
you are welcome
Good information! Thanks for making this.
My plan right now is to take SS somewhere between 67-70.
I just turned 59. I am 100% retiring from my job with a pension at 67
Id like to work a pt job for a few more years but who knows how ill feel in 8 years
Great presentation, thank you.
Thank you for these excellent videos.
My pleasure
So SS taxes money out by holding it back, the IRS taxes it too. Great system to fund the ever growing govt.
There is an advantage by drawing early and that is you are using less of your savings letting it grow. Yes SS goes up 5% a year but the stock market goes up on average of 10% a year for the last 100 years.
My self I have not decided if I will fully retire at 62 or 65. If I retire at 62 I will have to pay for full health insurance when its the most expensive. If I wait until 65 I can have my employer pay for the vast majority of my health insurance premium and then let Medicare take over at 65.
Excellent video....!!
Very helpful, thank you!
Glad it was helpful!
Not to sound stupid but where do we find the base figures you spoke about early on in video? Points etc. in order to figure it out ourselves. Does the SSA have our figures in place that we can look it up and see, maybe their website or calculator ?
I think you misstated at the end there. I am seeking the survivor benefit but I want to draw only hers for now and not my own which is higher. I’m allowed to choose in order to switch at 70 to a much higher personal account. The SS agent even told me I can do it this way. You stated that they pay you the higher amount which is not necessarily so.
You are correct. Survivor Social Security does not increase after full retirement age, so there is no benefit in not taking it at FRA. You can allow the personal Social Security to increase for three years and take it at 70.
Unfortunately you can’t take both your benefit and the survivor benefit at the same time (that was the comment), but you can take the higher of the two (which includes letting yours grow and switching :).
@ OK, thanks for your help in these matters though. It appears you have a good heart and are trying to help people even when there is no benefit financially to you. This is why I’m a subscriber. 🎅🎄☦️
@@HolySchmidt And, on this same survivor benefit point, I've always been told my wife would receive ("inherit") my entire, current, COLA-adjusted, age 70 monthly benefit payment at my passing, not just the payment I would have received had I started collecting at age 67 (my FRA), as I believe you state in your video here. Which understanding is correct, please?
If you're right, then the "wait 'til age 70" argument for the higher earning spouse just took a big hit from what many advisors have counselled in this situation. So, I'd really appreciate your definitive say here, one way or the other. Many thanks, in advance.
@larryrobx i understand the survivor keeps the full payment if they wait until their full retirement age to file.
Nice presentation. 👍
I worked intermittently and mostly was a stay at home mom. My ex worked full time. After 36 years we divorced. I tookSS at 62 because finding jobs with no career and with health issues is hard. He made great money, over 70k per year for 20 or more years. Yet they awarded me 400 for mine, and only 900 for his. Is that right?
Because you took it at 62 that’s why it’s less.
Great video. I was comparing to my numbers....are your bend points correct? Looks like you are spanning across two years of data. $1,226 and $6,165 are good, but the last value should be $7,391.
Live life now !!!!
What about windfall? I spent most of my working life in a pension program. I do have the 40 quarters but don’t think I will end up with much of anything. Is there anything I can do? Plan to wait until age 70 to maximize the amount I get.
Fantastic...Thanks for sharing...
HR 82 just passed…347 YEA votes! Now…S 597 needs a VOTE…to repeal: WEP and GOVERNMENT PENSION OFFSET….asap! Currently: 62 Co-Sponsors. . My deceased husband PAID IN....and I DON'T get ANY of his larger benefit! I taught Title 1 Reading to impoverished kids in MO. and KS. I need my SURVIVOR BENEFIT as a widow….right now!
I'd have loved to have the money I was forced to put into the ss system to add to my IRA over the last 30+ years.
Great information! Thank you
Glad it was helpful!
One confusing thing here was the effect of work after starting to collect ssi. I thought that you got penalized for earning above a certain threshhold for all years on ssi, and that income from IRA/401k withdrawals counted. Not so?
Great content, as always! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
Thanks. That is very good news!
Really really good video
Is there a special indexing factor for military salaries by year?
Great information
I worked from ages 27 to 47. I work for a city agency where I was able to collect my pension immediately. I’ve lived off my pension for the last 15 years and just started collecting at 62. 2650 a month.
Well done
@TheGarageisFull ~ Dang; that's pretty impressive! Sounds like you really knew how to get the most out of your working income, and, later pension - especially to be able to retire at 47 with a pension! I have a much longer work history specifically at at law firm for 22+ years, then on & off due to the recession of 2008, then back to work until November 2021 - when I chose to resign. I didn't start collecting my Social Security Benefits until I was 62 & nine months; and, I'm definitely not earning $2,650 a month. With that, I wish I'd been far more calculated in my approach to retirement, Social Security, etc. 🫡
@ trust me I didn’t plan it this way. It just fell into place. Since this is my first year collecting Social Security I’m having the 22% taken out just to see what it looks like on my taxes.
@@TheGarageisFull ~ 👍
I worked as a public school teacher and will draw a pension benefit. I also have more than 40 credits in SS. What is my penalty for having the pension? Can I still draw social security?
Do those indexing factors get updated each year to account for inflation. Example the indexing factor for the year 2000 is going to be higher in 2024 than it was in 2020?
They are tied to average wages, not inflation. In general wages increase more than inflation, so this is a plus. But the adjustment stops once you reach 60. After that you switch to the COLA, which is determined by inflation, but that only starts at 62, so there is a two year gap where you aren’t getting any kind of adjustment, although if you’re still working you will probably get some benefit from the higher wages replacing part of your history. Anyone who hit 60 in the last few years has been hit hard by this (which is why I know…)
The factors are updated every year though.
Great explainer!
Re: Survivor benefits, the surviving spouse can claim their own benefit early then switch to their survivor benefits when they reach fra, allowing the survivor benefit to grow to 100%. This is true even if (especially if!) the survivor benefit is already larger. It's the claimant's choice, not Social security's choice but yes, you can only get one or the other.
You can also claim survivors and let your own grow until age 70.
Unless you're a public school teacher. Then you don't get the survivor benefit because you have a government pension.
@marygillespie2028 ouch
@@marygillespie2028 I didn't know that. That's unfortunate.
@@marygillespie2028 Again - this is because if you'd been paying into SS your whole life your own benefit would have been higher than your spousal benefit. The higher earning spouse in a couple who are both under SS doesn't get a survivor benefit either.
Great information.
Can married couples take their own SS, or does one have to take spousal benefits?
They can take their own. Often people can start with one and let the other continue to grow.
Thanks for the slower paced explanations. Most Tubers are fire hose speakers and talk so fast it’s impossible to get much of it.
When you find UA-camrs speaking 100 MPH, go to the gear wheel at the bottom of the video. There is a playback choice. Normal, faster, slower. You can also increase slow talkers.
Thanks for the insight. What a great tool
If we are already drawing SS, can we update our status and receive more pay benefits?
Does the ex spouse lose their claim for good if they remarry?
Or do they just have to be “single” when they claim?
@bobinthewest8559 ~ Perhaps do a little fact checking, but I believe if you either wait until 60 or 65 to remarry it doesn't affect one's divorced spousal benefits - but again do some thorough research ... 😉
For spousal benefits, can I get my own SS and spousal benefits? Or is it the same as with survivor benefits - you get one or the other?
One or the other, not a combined amount.
Sometime the SSA says you get your benefit plus an additional amount but the total is not going to exceed 1/2 the spouses benefit. If your own benefit is more than half of theirs you should get that amount automatically.
Special rules (discounts) apply if you start to collect early.
Thank you!
You're welcome!
Does the RIB Lim apply for survivor benefits?
It might be a stupid question. But does your social security go down? If I quit working at 64 and live off my pension and cash in the bank, but don't collect my social security until 67. Will those three years of zero dollars earned hurt my social security checks
They base the calculation on your best earnings years in a 30/35 year period. Zeros don't count against you, they just don't count for you.
SS is based on your highest 35 years of earnings. If you could earn more now than you did in three of those 35 years (for example, early in your career), you would increase the amount of your Social Security check, but probably not enough to make it worth working three extra years, unless you really love your work.
@Geof, very Interesting video! It seems that the Government manages to make everything having to do with taxes SO complicated that many of their own people will not come up with the same answer when asked the same question! I wonder if you know whether or not indexing has always been used since SS was started and how it might have varied during years of very high inflation such as the 70's? Although someone who worked back then has likely had many years of higher net income, it isn't a linear line up for many of us. If SS stops indexing at age 60 and uses the higher adjusted income for 35 years, someone who began working at age 18 continuing through age 60 would have worked 42 years. I believe the minimum wage was $1.65 during the later part of the 70's and general pay for workers was considerably lower on a non inflation basis.They don't make your adjusted, indexed income available through their website at least in your own account pages.
Plus the government numbers in inflation are very under reported, real inflation rate is much higher than the reported rates
My wife is a long time high earner and so should qualify for a larger social security check when she retires at 67. That will occur in 4 years. Will that higher amount payment be reduced if her spouse (me) still makes over $150k annually from investments? If yes, is there some financial mechanism I can engage to prevent her payment being reduced?
No, investment earnings are not wages.
Whether investments or wages your earnings don’t reduce your spouse’s SS. It’s based on her work history.
Great video what happens when someone maxed Social security since 1987 since I worked 2 jobs always?
Then you have an accident after your first check...uncle Sam can't keep paying you the big bucks...😊
If you actually maxed out (made as much or more each year as they require you to pay ss tax on) then you should max out on payments if you're full retirement age and get about $4168 per month in 2025 or maybe more if you wait until age 70 to collect (+ inflation adjusted amounts).
Hi Geoff,
Thank you for your recent video on social security. Is income from qualified or non qualified dividends considered income for the purposes of forced reductions in my social security benefit if I retire before full retirement age?
Yes
Dividends are not wages or self-employment income, which is what reduces your benefits. "[non] qualified" dividends just refers to whether or not it qualifies for a more favorable capital gains tax treatment.
How does a legal separation affect spousal benefits?
It doesn’t. You’re either married or divorced and you have to have been married for ten years.
I would like to know if the guy that quit after 9 years making $125,000.00 decided to go back to work for a year at 64 making $30,000.00 to start collecting social security at 65 how much would he get?
Slightly more than Alfred (all else equal) given the numerator would be higher.
Thank you 😊 Still confused but Thank you
So, it's taking the highest 35 years of earnings to get their average then?
After indexing the top 35 into inflation adjusted levels.
A question. What if you are like me, and your wife is 29.5 years younger. Let’s say I die before she is 60. Can she start getting a survivor benefit at age 60? Or does she have to already be 60 when I die?
A bit confused on divorced spouse benefits. If take benefits from ex-spouse, how would that affect my own SS benefits?
@cindyboane1951 ~ If you were legally married for at least a full ten (10) years you are entitled to divorced spousal benefits; one or the other - if your regular Social Security Benefits are higher you wouldn't collect or add to the monthly amount you'd receive. Also, your former spouse's Social Security Benefits would not be affected, nor would they even be made aware you were receiving anything from said benefits. ☺️
Thank you.
Can you do or direct me to a video on what types of Income are Not Counted towards IRMA/Medicare?
If you take full retirement SS and still want to work. What happens to the social security and medicare contributions on your paycheck?
It goes into the trust funds to pay current benefits. So you’re actually then paying yourself.
@ws775 paying yourself? Not sure what you mean.
You continue to pay ss and Medicare taxes on your earnings...if your current year of wages is one of your highest 35 years then you might get an additional slight adjustment on your payments next year or when ssa adjusts it for you you might have to talk to them but I think it's automatic. If it isn't one of your 35 highest then nothing happens you continue your same benefits with cola adjustments.
@Tryp-j9d well it'll go into the pot for others then.
I just took Social Security at age 70. I am still working so I can replace lower earning years with higher ones, as well as earning rather than spending for a few more years.
At this point it won't add much monthly...but having new earnings..yea
Q: at 70 does SS automatically start paying or do you have to apply? 69.5 yo here, 12/13/24.
You have to apply.
You have to apply.
Thank you for paying into social security past age 70. You are a hero in my book 😊
I want to keep working until 70. If I draw SS now, and keep working, will my benefits continue to increase, to compensate for lower earnings years? My statement from SS indicates my approx. earning if I continue to make an indicated amount on the statement. I have a few years where I made only $3000ish a year, but have increased that over the past many years, so I'm trying to erase those earlier years by having a higher income established.
How the hell can anyone retire early and collect social security when they cap your earnings to about 23k per year and then penalize anything above it for the rest of your life???!!!
If you can't make it on 23k plus SS, then don't retire early.
The earnings is based on wages or self-employment, not pension, dividends, capital gains, etc. So if you're *working* and earningmore than 23K a year, are you really retired?
Having said that if the $2 for $1 phase out is substantial for you (earning well over $23K a year before FRA), it probably makes little sense to draw SS before your FRA. While you'll get back any SS withheld due to the phase out, your monthly benefit amount will still be permanently lowered over the rest of your life. It just doesn't math out.
It's a Ponzi Scheme bottom line. Give with one hand and take with two.
☹️
My question is regarding spousal benefits. I plan to continue working at least to FRA but my spouse is two years younger than I am. She works part time only. Would it be a mistake for her to file for SS benefits now rather than waiting for me to file? She does have 40 work credits of her own.
Unless you KNOW you are living past 80 years old take the money as soon as you can. The math has always born that out.
And, even if you think you will live past 80, don't you think, in the intervening 18 years, that you won't improve your lot in life?
Plus, who's to say it will be there anyhow? You paid in your entire life, why let them keep it earning interest? LOL
Even if I lived to 90, that'd only be either 19% or 28% gains on the WHOLE *for those last ten years*. Honestly, it could be worth it, but not for me.
Pretty sure I could beat that haircut by taking SS early and just investing it.
Can a person collect survivor benefits from more than 1 deceased spouse?
Thanks
Is your getting ss and can get a lump sum from a pension you earned from another country prior to coming to USA is that money taxable.
Does employer withhold FICA after you’ve reached FRA and started collecting?
Yes
This was a very informative and I think accurate video. What I'm concerned about is the cuts that are going to happen if the politicians hand Social Security over to Wall Street or if they don't find a way to refunds the trust account. As early as 20:32 I believe people will get an automatic 33% cut unless they do something! This is horrible and I'm so tired of politicians waiting to the last minute, so I'm hoping that Donald Trump will propose removing the cap for high wage earners and have them pay social security tax on all of their earnings just like the average person does. I am not opposed to people making high wages but that is really the best way to make sure that the system is funded properly. If we don't do something soon it's going to be really really difficult for the average person.
Relax Never going to happen ...chicken little syndrome...be afraid of inflation ..ss raises never cover all inflation...they cheat us that way
Trump is not going to do anything to help social security. Are you kidding?
@@Savannah-ed4rv If the cap is removed, so will the benefit limitations. Are you okay with that?
"....hoping Trump will propose removing the cap for high earners..." 😂😂😂
The only thing he's proposing is removing Social Security all together. 🤬
@@Savannah-ed4rv People would be getting double or triple the amount of the current benefits had the government not "borrowed" social security surpluses and they had been invested back into America via the stock market. And the government (us) wouldn't now owe trillions back to social security and the economy would be larger benefitting us all even more.
Then we could welcome in even more migrants and help more of the world. But instead those funds were "borrowed" and used for boondoggles like the big dig in Boston.
I think anyone that is married is eligible under spouses SS ?