Social Security Timing

[@walterbazarewski2496]

Great overview! Thank you for the overview!

[@philip5899]

It’s the same bucket of money. Take it early, enjoy it longer. Keep your savings for your children. Take it late, use up your savings, less left for your children. There’s no magic. It’s not about taking SS early and invest. It’s about taking early and keep your investment growing. SS is money on the table. Take it later, die the next day and you lose. Life is a crap shoot, take it early. These guys are really interested in selling you insurance and annuity 😂 !

[@chessdad182]

I decided to retire just months before FRA. I used my 401k to cover expenses until SSA starts in January. Glad with my decision and timing for retirement.

[@generatorjohn4537]

I collected my SS when I turned age 66 years old this year. Was going to wait until age 66 years, 4 months (100% benefit) January 2023. The reason I took SS a few months earlier was due to the downturn in the stock market. Since I had retired (5 years ago) was using my IRA to supplement my monthly company pension check. The SS check that I receive is approximately $150-200 less per month than my original 100% benefit. For me, by taking SS now replaces my IRA monthly disbursement. Doing so will give my IRA time to recover from the downturn in the market we are having this year. Thanks Hans and Tom for these informative videos.

[@sallymikilich6477]

How late must I have to sign up for social security in Wisconsin. My husband died in May 2021 and I was told I couldn't get any additional money from his social security after I turn 67. I don't understand--is it not 70. I was sick so my social security isn't. much. I do work full-time now. I only have a bank account so can I ever be taxed. Will I ever be taxed more then on my paycheck Where I plan to work forever.

[@robertbass974]

COLA makes a much bigger difference at 70 than it does at 62. If you use a 2.4% cola, taking SS is more money from 78 and beyond. I'm waiting until 70 to make sure my wife has plenty to live on.

[@dublinbluetune]

I started receiving SS when I turned 66 (my full retirement amount) - but I continued to work for the next 28 months. I took my benefit and maxed out my 401K (thus reducing my tax on it). When I finally retired, I had an extra 52K that i wouldn't have had if I had put off receiving my SS . When I finally retired at almost 68 1/2, I had my basement remodeled while my wife and I went on a four week vacation (including a cruise).

[@janicenunn8525]

nicely done

[@davidfolts5893]

A significant pillar of your financial plan. Thanks for the great video!

[@barrysimmons4546]

If SS is a significant pillar, you are in trouble.

[@davidfolts5893]

@@barrysimmons4546 It is age dependent whereas the younger you are the pillar may become less of one. However, guaranteed inflation-indexed income is hard to match for the base of a financial plan.

[@jeromes58]

What are your thoughts on the Medicare Hold Harmless rule that can cause your Medicare cost to increase if your Medicare is not being paid from your social security benefit. Based on that I’ll be taking mine at 65. My FRA is also 66 and 8 months. My wife started hers at 62.

[@Paul-GrnHil]

Hans, I’ve run various scenarios and collecting at age 70 is best for me and my wife. Here is another consideration, since I will turn 70 in August 2027 and my wife in December 2027 and we plan to delay our filing until January 2028. It is my understanding that we will be paid our age 70 retroactively to our eligibility date but puts the income to 2028. This allows us to maximize our Roth conversion for what we expect to be our last year in 2027. Once we start collecting, our Roth conversions will be less tax efficient.

[@CardinalAdvisors]

That’s smart! I don’t think the retroactive payment comes for everyone. You’ll need to check with SS regarding that

[@Paul-GrnHil]

@@CardinalAdvisors I am under the impression that there is a 6 month retroactive period. I wouldn’t consider it if my birthday was in the first half of the year even if it was possible.

[@CardinalAdvisors]

@@Paul-GrnHil I think that’s true but I don’t know for sure. I’ll consult with Tom before we confirm that

[@TheDealHunter]

When to claim Social Security is like a "marshmallow test" for seniors.

[@davidfolts5893]

A most astute observation!

[@barrysimmons4546]

Exactly!!!!

[@kevinheenan5366]

Very informative. Just to give you my view, I have other annuities and whole life policies so it would cost me $120,000 in missed Social Security payments to wait until age 67. Taking that into account, The increased benefits would be paid in lower value dollars and take at least a decade to begin to catch up. I will not wait. My financial advisor agrees as my other investments will certainly grow during that time as I would not be tapping them.

[@barrysimmons4546]

No investment will pay you a guaranteed 8% plus inflation. You need to find a new financial advisor. Begin collecting at 70.

[@kevinheenan5366]

@@barrysimmons4546 8 years times $2,000 times 12 monthly payments = $192,000 that I will pass up by waiting until 70. At $700 per month increase (approx.) it will take 274 payments to catch up for that loss (Approx 23 years). Based on past family lifespans averaging death at age 80 (say even 85 if I am extremely healthy) I will never make it back. Plus I ride a motorcycle and fly planes which add significant risk. I will stick with my original plan. SS still gives me adjustments for inflation. I have annuities and roth IRAs that I may not ever need to touch but if I do they will be tax free.

[@barrysimmons4546]

@@kevinheenan5366 Your check is only $2,000? I'm 67. When I turn 70 I will collect $4,719 per month. It won't take me long to pass you.

[@kevinheenan5366]

@@barrysimmons4546 That response says much about you. I offer a different view and you brag about your income. I hope others read this. I have worked for many charities and given much of my money away as there is more to life than earning and keeping wealth. As for the survivor benefit, my spouse will receive a very large life insurance payout so she has no worries.

[@johnessency9467]

I think it would have been helpful to talk a bit about the tax implications of getting a larger check by waiting to take it at 70. Should that play into the decision making process at all?

[@CardinalAdvisors]

Sure taxes weigh on the decision.

[@Satjr35031]

The taxes really depend on how much provisional income you have in addition to your SS Benefits

[@jackdreddle2740]

Absolutely not

[@barrysimmons4546]

@@CardinalAdvisors No! Never limit your income to avoid taxes.

[@barrysimmons4546]

Tax implications???

[@Calventius]

Do I take the $800. extra a month at 70 or give up the $108,000. that I will lose after 66.6 years?

[@barrysimmons4546]

Wait until you are 70

[@MarkKuhn-ok8dw]

Would be interested to see Medicare and IRMAA costs (high and low) put into the charts Tom discussed to see a net CF received at the different ages. For example paying medicare/IRMAA at 65 yet not taking Social Security until age 70 means vs starting Medicare at 65 and taking Social Security at 100% age. The former case requires other CF to fund Medicare for ~4 years. In this case guessing it takes one into their late 80's-early 90's to break even on these Medicare payments. Comparing payout curves for these cases may influence the decision of starting Social Security at your 100% date vs delaying to age 70.

[@barrysimmons4546]

Timing??? Collect beginning at 70. Nothing to "time"

[@Laborkei]

My Big Concern since the recent COLA Increase for 2023, it will shorten the Social Security Funding. Plenty Crazy discussions going on right now in Congress to Extend Social Security Funding, but it will have an impact on me...

[@shaystern2453]

that's just fear making up your mind

[@barrysimmons4546]

Wait until you are 70 to collect. Financial decisions should not be emotional.

[@Matias-ez5dr]

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