Delay Social Security? Take It Early? Wait Til 70?

Рет қаралды 6,942

Күн бұрын

Пікірлер: 51

@TheDealHunter 4 ай бұрын

A valid argument can be made for claiming at any age, because the age of death for yourself and/or your spouse is unknown and unknowable. If you apply the philosophical argument of "Pascal's Wager", one would generally delay as long as possible (up to age 70). The basic premise of Pascal's Wager is to consider, "What if I'm wrong" and choose which is the less worse outcome. If you decide to claim later and you die earlier than expected, you missed out on receiving money, but your still dead. If you claim earlier and live longer, you may not have enough money for a pleasant retirement. The choice is yours.

@lalopez627 Ай бұрын

Right, like the saying “Tomorrow is not Promised” To me it balances itself out.

@leisure057blank3 4 ай бұрын

I don’t use the age to hit break even point in my consideration. I am waiting until 70, as I am doing Roth conversions in hopes of fending off IRMAA. Also having viewed my grandfathers retirement, I am aware of the potential effects of inflation and therefore feel a larger ss check would be of benefit to me. So after reviewing my situation, this is MY decision.

@blanketwodahs6741 4 ай бұрын

doesn't that start currently at over 100k? is your decision because you plan to have that much income while retired? or you are converting also to avoid RMDs? I am married, looks like married is over 200k for IRMAA unless I am reading it wrong. No way my wife and I will spend even 100k while retired...

@leisure057blank3 4 ай бұрын

@@blanketwodahs6741 see I am single, living comfortably on my pension, because I lived below my means my whole life, also have dividends and interest income, then I will pull ss at 70. I should be able to move a little bit before rmds. They will kick in at 72 for me. And then I’m toast. I wasn’t aware of irmaa until about a year ago. I was already worried about taxes. My income never hit gross $50,000

@leisure057blank3 4 ай бұрын

When I was working.

@ConnectCommit 4 ай бұрын

Fun example: Couple retires at 66. Monthly budget requires $6,000 a month. If we take SS at 66 it yields $6,000 a month. Amazing. If we delay until 70 it requires we spend $360K of our own funds (6K per month for five years) IN ADDITION to not collecting $360K from SS (6K per month for five years). At age 70 we are now 'down' $720K. But wait, with a now 'higher' SS amount coming in at age 70, it "only" takes until age 87 to recoup the $720K ($360K+$360K). HAHHAHA, No thanks. We took the $6,000 at 66, we avoided spending ANY our own funds, keeping them invested and growing, and live quite comfortably on SS without ever touching our $XMillions nest egg. Oh also, read the book 'Die With Zero' by Bill Perkins.

@heart_and_sole 4 ай бұрын

That sounds reasonable. Congrats.

@user-el7ps4zt6r 4 ай бұрын

That’s my plan. Taking it at 66 & 4 months. I don’t need the money, it’s going into 529 plans.

@ConnectCommit 4 ай бұрын

@@user-el7ps4zt6r How perfect is that! Well done.

@patclark6032 4 ай бұрын

Point is valid. But it's 4 years, right?

@ConnectCommit 4 ай бұрын

@@patclark6032 Guess it depends. Retire January at 66, 67, 68, 69, 70 with a December birthday.

@stevenwolfgang2744 4 ай бұрын

Good video but I think you guys missed the mark regarding SSA annual COLA adjustments. Hans made a couple offhand comments about inflation impacting SSA retirement benefits, but COLA is a big part of the decision process. The SSA statement is a snapshot in time and doesn't take COLA into account. When adding the 8% annual delayed earnings credit to several years of COLA adjustments, delaying taking SSA retirement benefits is substantial.

@Meadowlark57 4 ай бұрын

Exactly. This is a point that is often overlooked (by myself as well). Thanks for the reminder.

@deanrotering879 11 күн бұрын

You get colas if you take it at 62 as well so it’s a wash.😊

@borisVladimir2 4 ай бұрын

I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!

@josephjuno9555 4 ай бұрын

It's not all about the Most Money? People focus wo much on the $$$? It's about When you get This Money? Alot of the people that Delay SS until 70 don't really need the money at all? $ millions in the bank? Alot of people take it at 62 Need the money to survive. Sone want the money for their Go-Go years? Others don't think they will Live long enuff for it to matter? Maximum Life not just Money!

@2148aa 4 ай бұрын

Sounds like a parable from the bible.

@randolphh8005 4 ай бұрын

We are retired for 2 and 4 years. Wife took SS at age 63, I’m planning on waiting till 70 to get the higher survivor benefit. If both members of a couple have work records, usually one should delay a while(the high earner). The other can take earlier. This split strategy creates 2 large advantages. Early filing creates earlier income and mitigates portfolio withdrawals. The delayed benefit will be much larger and goes till the last person dies. So if one partner dies earlier(which is the norm) the low check goes away. If that one low check was taken earlier, they likely would have collected more, than if they had also delayed. For us in today’s $ we will get $7000 as a couple when I hit 70, with a $4500 survivor benefit. That is more than enough to “survive” and creates a scenario where the portfolio is only needed for discretionary expenses!

@heart_and_sole 4 ай бұрын

Sounds reasonable to me. What might a couple do in the event only 1 of them qualify for SS benefits? Congrats.

@randolphh8005 4 ай бұрын

@@heart_and_sole Why would only one qualify? Do you mean one spouse only qualifies on the other spouse’s record, and not on their own. In that case delaying at least somewhat is usually best, although probably not all the way to 70.

@heart_and_sole 4 ай бұрын

@randolphh8005 ..Correct on meaning of Qualified...Certainly many factors in play...The idea of drawing early to allow portfolio to keep on growing seems a larger upside vs the COLA adjustments on SS benefits...if a downturn hits the market, ride it out with SS...also IF one spouse never contributed into the system and qualifies for half of the qualified spouse's mthly payout...could that portion be rightly thought of as Free money...These are thought scenarios, as I enjoy finance topics.

@edhuber3557 Ай бұрын

I've another, undiscussed strategy. I'll ask them to simply pay back all SS collected (compounded by historical risk-free TB rates). I'll waive any SS income and invest the returned sum myself. A Dios, Voraciousos.

@jamesmurphy5315 Ай бұрын

considering SS delays should not be made by considering SS alone. If one has stopped working..... then presumably one will have to draw down investments to fill the income gap in the budget caused by delaying SS. Looking at holistically the entire wealth portfolio..... means considering the loss of the compounding withdrawals over your lifetime. This portfolio analysis means the "breakeven" for collecting at 62 vs full retirement age or beyond will be pushed way past 79-81 . Other things missing from your analysis, SS payments have some tax advantages which were also not included. furthermore, since one cannot know when one or both spouses will die the "risk" of delaying should be assigned value in your analysis. also, the fact that SS funds collectred starting at 62 and your portfolio of invested funds not spent down by delaying SS are part of your estate and available to be passed down. Obviously, any SS delayed and any funds spent down from investments are not part of your estate to leave behind. My analysis led me to the decision to collect at 62 and my wife's spousal benefits at 62. collected

@mattclary2069 4 ай бұрын

Tom & Hans: Using the gentleman in the example along with the following assumptions, if he were to die after retirement when he was 68 years old. His wife would already be claiming her own SS and he would not have started his, yet. Please talk me through how and when she would have to claim her survivors benefit. Thank you.

@randolphh8005 4 ай бұрын

The wife would be eligible for the amount he would have gotten if he claimed the day he died, since he is past FRA. She gets his delay credits.

@MCMXI1 4 ай бұрын

@@randolphh8005 Thanks

@knikula 4 ай бұрын

always good stuff here, looking back, I should have delayed SS instead of taking it at 62...

@stevebc957 4 ай бұрын

You might want to explain further, to help others - I realize you can't change your own situation but maybe it will help others facing that decision since so often people who took it at 62 flood the comments sections of videos like this with their "No Regrets!" mantra. Typically they're only a few years into retirement and haven't experienced the loss of purchasing power older people have...

@blanketwodahs6741 4 ай бұрын

I might not even pick a date. I might just delay until I start getting concerned about my other assets. Which may or may not be an issue as I am quitting work @ 55. Otherwise I am generally take it early to make some use of the money. Seems like it'd be a waste to delay until 70 and then pass away @ 75.

@JBoy340a 4 ай бұрын

We will probably start at FRA (67) to avoid getting a reduction because we still earn income.

@teams3345 4 ай бұрын

Take it at 62. It sure worked for me!

@pauld9653 4 ай бұрын

Does your software take into affect the present value of money, ie you are getting more by waiting but its inflated dollars vrs today's dollars, and the idea of investing todays benefit vrs waiting for higher future benefit. Can you just tell me how long I will live (and my wife) so I can make the right move? haha. For those who really want to wait.. and you have a birthday in months jul-dec.. you can wait up to age 70.5, because when you file you can option to get up to 6 months back benefit paid at once. If you are maxing out Roth conversions and don't want the SS money in this years tax filing, then this helps push out the taxable benefit to the next taxable year, thus allowing more Roth conversion to fill up your tax bracket.

@davidfolts5893 4 ай бұрын

Social Security is longevity insurance. People watching videos like these are more likely to live longer and would benefit from delaying to age seventy. It another way for you to take and pass the marshmallow test again.😸

@Savannah-ed4rv 4 ай бұрын

This is completely not the topic but knowing what I know now about whole life insurance with cash value, it would have been better for the government to investor money into individual policies so that we can have that compounded interest with the cash value and live off of that. I know that sounds insane but a trust fund doesn't seem like the best way to go!

@janicenunn8525 4 ай бұрын

This will not be paying past 2032 as US Gov will not exist in current form as of Dec 28, 2032. Taking it early and relying on gold and private sector annuities for longevity, far more sustainable than Fed Gov.

@josephjuno9555 4 ай бұрын

Wow! Spoiler Alert?

@dakotaiv 4 ай бұрын

Thanks for this explanation. I was born in 1957. My Social Security statement shows the same retirement amount at age 66 years and 6 months as it shows for age 67, no increase for 6 months on my statement. For those of us born between 1954 and 1960, does the increase "freeze" for the months between our FRA and age 67?

@CardinalAdvisors 2 ай бұрын

@@dakotaiv Dan. This has come up before. I think it’s the statement that is wrong.

@keywestjoe1 4 ай бұрын

If I stop working at 63 years old, draw off of cash and retirement funds, is there a possibility that my top 35 years actually decreases my check at age 70?

@CardinalAdvisors 4 ай бұрын

No. Your top 35 years remain constant, your FRA benefit is constant, and your age 70 benefit is constant; except for inflation adjustments