I worked for a bank in the 2000s, doing customer service and sales. The clientele was mostly seniors, with a median age of 63. The folks I talked to who kept working into 'old age' were almost always less worried and much much more mentally sharp than those who retired early. A lot of the people I talked to who retired in their 50s sounded at 60 like their brains were made of angry oatmeal. There are physical and mental health benefits to working that don't show up in a paycheck. I'm with the accountant on this. Poor health is too costly, and not having to spend money early on adds up to a lot over time.
My dad died at age 69 and it was unexpected. He started to collect at 62, thankfully being able to have more than 18 mos of Social Security. Social Security should not be the only source of income in retirement. I realize it is for many. I think this video needs to encourage contributing to 401k, Roth or other IRAs, etc. Diversification is key to any financial plan.
CPA makes a huge assumption that is highly unlikely. He assumes people would invest their SSI at 100% in the 4 versus 10% scenario. Almost all will spend it.
I do not expect that people invest their social security. The analysis was designed to show the time value of money and that the decision for when to take social security depends on one's "hurdle rate," whether they value money at 10% or 4%.
if you want to continue to work at your regular job and making good money then it doesn't make sense. Sure, but that's not what most people are doing. I totally agree with the working model. What is value of your 5 years though? People do have health concerns as they get older (or die) and you can't buy more time.
Good advice.
I worked for a bank in the 2000s, doing customer service and sales. The clientele was mostly seniors, with a median age of 63. The folks I talked to who kept working into 'old age' were almost always less worried and much much more mentally sharp than those who retired early. A lot of the people I talked to who retired in their 50s sounded at 60 like their brains were made of angry oatmeal.
There are physical and mental health benefits to working that don't show up in a paycheck. I'm with the accountant on this. Poor health is too costly, and not having to spend money early on adds up to a lot over time.
I also worked in a bank many years ago and your comment made me think of those days - and you are right. That was my experience as well.
My dad died at age 69 and it was unexpected. He started to collect at 62, thankfully being able to have more than 18 mos of Social Security.
Social Security should not be the only source of income in retirement. I realize it is for many. I think this video needs to encourage contributing to 401k, Roth or other IRAs, etc. Diversification is key to any financial plan.
Sorry for your loss. Those are great ideas and we will add them in future!
CPA makes a huge assumption that is highly unlikely. He assumes people would invest their SSI at 100% in the 4 versus 10% scenario. Almost all will spend it.
Especially, if they have a TREMOR! Those TRUCKS are EXPENSIVE!!
I do not expect that people invest their social security. The analysis was designed to show the time value of money and that the decision for when to take social security depends on one's "hurdle rate," whether they value money at 10% or 4%.
if you want to continue to work at your regular job and making good money then it doesn't make sense. Sure, but that's not what most people are doing. I totally agree with the working model. What is value of your 5 years though? People do have health concerns as they get older (or die) and you can't buy more time.
I think what you are swaying is, you can enjoy money more in the early part of your retirement vs that later part. I agree.