When Do I Start Drawing Social Security?

[@carolynhostetler8641]

My sister and her husband don’t need SS. At first he thought they wouldn’t draw since they don’t need it. They changed their minds and now put it all in a separate account and use it to help those in need. I should add, this is above and beyond what they already tithe and charities they support.

[@lisabadger603]

Bless them!❤

[@Jirehbireh]

What a blessing ❤

[@terriejohnson6498]

🎉

[@Der8cho]

My Great Uncle took it at 62. He lived to 92. He contributed his long life to early retirement!

[@tancreddehauteville764]

For me, early retirement is 55-57, not 62.

[@websterhays8352]

Your great uncle made a big mistake. Wait until you are 70 to collect

[@markbernhardt6281]

@@websterhays8352 Wrong. If you invest all of it into the S&P, by the time you reach 70 that money will be making the difference. The big deal is dying at 69. At least you'll have six figures worth of assets but with your plan you will have 0 to pass on.

[@websterhays8352]

@@markbernhardt6281 You will be investing after tax. I will be "investing " pretax with a guaranteed 8% plus inflation. You are making a very poor choice.

[@XploreAz]

@@websterhays8352and if you don’t live to be 70? Now you just wasted any money you could have drawn. Big mistake.

[@Will67267]

I took it at 62 and never regretted it for a second. Life is too short.

[@DrSchor]

If you live past 75, there will be plenty of time for regrets

[@CecileH730]

⁠@@DrSchorwhy?

[@DrSchor]

@@CecileH730 your check will be the smallest possible for the rest of your life

[@CecileH730]

@@DrSchor right. I have other income.

[@CecileH730]

@@DrSchor each person’s individual circumstance should dictate when they draw SSI.

[@strothermartin5368]

I started at 62 and never looked back!☺️ Tomorrow is not promised to you. The only drawback is my SSI comes in the second Wed.When I was a kid, every body received theirs first of the month.

[@waynehoffman1791]

Good job!

[@cjhoward409]

Depends on how healthy you’ve been your whole life. My dad waited to age 67 for full benefits because he was always very healthy his whole life. And he still is at age 90 !

[@Eventhough95]

Aren't you taxed on ss if you work and aren't full retirement age?

[@strothermartin5368]

@@Eventhough95 yes

[@WeBeatMedicare6969]

That means you left a lot of cash on the table…oh well, hope that works out for you

[@JM-io4vb]

I love how Dave cut through all the typical bullcrap and got right to the heart of the matter! I've seen so many analysis of this question that fail to take into account the core fundamental point of whether SS is a significant/needed part of someone's retirement vs a little added bonus on top of what they already saved. If you're in a strong financial position, take it as soon as you can!

[@DrSchor]

and if you are not?

[@jaminjosh23]

I’m 40 and plan on drawing at 62, main reason for that is no men in my family have lived past 68 in the last 120 years, I’m shooting for 80 but with my aunts and uncles all going at 65 or younger I’m “playing” the stats in my family. Will have a pension, Roth and 403b as well.

[@judygilbert9628]

We adjusted our lifestyle ( downsizing ,debt free including house) so that social security more than covers our expenses. We save the excess in CD. It’s been sweet. We want for nothing . We take a few trips that we plan for from investments. . We also like to challenge ourselves in a few No spend months a year . The minimalists have been so inspiring. Even with trips, our bank accounts are increasing. We keep in mind that when one of us passes the other will only have the one ss so that is planned for. Knowledge on how to mange a small income is key. We both took our ss at 62 and worked part time until 66. Our health was more important than continuing with stress of our full time jobs.

[@parkcaro]

This is what my husband and I are planning in about 10 years. Thanks for the inspiration!

[@gosman949]

foolish decision since you both worked. One should at least wait until 70 so the other can take that retirement if they are the second survivor.

[@teresaellis895]

Hubby just retired.He has Ss and army retirement.We know if he passes first that my income will be at least half...so hope to keep 401k in investments and hope to try to save more if even 2 or 3 grand a year ..debt free so hope we can do it.

[@tmlau23]

Minimalism and marrying a spouse with the same vision are keys to financial freedom and peace of mind. Health is wealth. Congrats!

[@billgrant2116]

Im going at 62, the break even point for me taking it early or waiting till 67 is if i live to be 78. Figured in a modest 3% increae annually . So 62 is my retirement age. Life is too short. Im starting my next chapter in april

[@garyjones3142]

Staying poor?

[@loganthorp5327]

There is some underlying issue here that I wish they would address. So many people call with millions and then are afraid to retire. Maybe they dont understand how to live off of the investment money from their nest egg.

[@jodylarson4697]

Good point. Maybe it's that they are so used to saving, they can't switch to spending without feeling anxious. They don't want to see their balance drop. In their case, though, they'll see more of a drop from market fluctuations, depending on their investments, than they will from withdrawals.

[@loganthorp5327]

@@jodylarson4697 yes, its like they want their nest egg to continue to grow like they have watched it grow instead of them leaving off the interest of that nest egg. A sudden halt, may need to be addressed by @daveramsey soon because of how often this is brought up.

[@barnabusdoyle4930]

First objective of retirement should be living in a paid off home. From there the daily expenses shouldn’t be that high. Being smart with your spending is always the best course. It is true that most people are learning how to build a portfolio of mutual funds but not actually learning how to live off of that. -Find a slew of companies that pay dividends and have a long track record of paying dividends and increasing those dividends. -Get a rental property or 2, don’t go crazy with it but that cash flow will be extremely helpful. -Look to see how much of a gain your portfolio got last year and take 50% of that out of you weakest performer. With a budget on how to go about using it month to month to hold down the fort. Rinse and repeat each year. After a certain age, 401k accounts require you to withdraw a certain amount a year. -Draw social security as early as humanly possible. You never know when you won’t be able to draw it anymore.

[@Jane5720]

It’s hard to go from the mode to invest whenever you can as much as you can to actually start spending it so it’s a big transition

[@arrowknee7356]

@@loganthorp5327 Well you can continue to grow it, and if you want to do that to give to your children for example that is all good (just make sure you have that reason for wanting to keep growing it that is thought out and you aren't just acting based on how you feel). But you have to accept it will grow much slower then before. Say they lived of 50k less then they got each year from there investments that would still be 150 to 250k they would be living of a year which is enough to do pretty much anything most people want to do (or maybe I live to simple and humble of a life) and they could continue growing that investment.

[@fluffhead917]

Take it at 62, either invest it or stack up cash if you don’t need it. If you die, you can pass that money on. If you don’t take it and die, it’s gone forever..

[@md-wg4bz]

Good idea!

[@jml9550]

Exactly.

[@youngtimer964]

My kids don’t need it either. I took at FRA and just accumulating now.

[@apollovizsla]

Very true!

[@carololiver9283]

Absolutely! My husband died at 65 the year he was to retire and because I made more, his is gone forever!! Truly disgusting. I’m going to retire at 62!!!!

[@mikestevens2053]

One small critique here: Dave hangs his hat on their $3 million net worth in advising her. But she lives in Seattle. It's quite likely her home is more than $1 million of that total, maybe more. She and her husband are still probably just fine, but Seattle has some of the highest home prices and property taxes in the country. Many are wealthy based on home equity, but that doesn't generate cash flow until you sell or borrow against it.

[@russellpottenger8584]

Great point. I’m in the same dilemma. I’m turning 64 in May and have not pulled my Social Security yet. With that said, I am real estate rich living in So. California (two of my four homes being over 1 million each) but I am cash poor until I sell one of my homes.

[@annsgal2025]

One should not count the home one lives in as a source of cash flow. I live in San Jose, California and have 2 million dollars equity in the home I own and live in. I don’t look upon it as an income generating asset. It will become an income generating asset for my heirs when it’s sold after I pass away. With over 10 million net worth, I still feel very middle class due to how little money buys in Silicon Valley.

[@spconrad9612]

I would assume w a total net worth of almost $3 million they will know how to rub a couple nickels together to survive.

[@russellpottenger8584]

@@spconrad9612 Lol

[@44carbine]

I am about eight months away turning 62. I am going to start my retirement at 62. My Father had heart problems and died 4 months before turning 62. Had been contributing to SS since his teens. His Dad... how is Dad's Dad never lived past their mid fifties. My heart is good with good and bad colesturol good. I have mild diabetes and slightly elevated blood pressure and taking medication to control all of that. I am a good 50-lbs overweight. I am 6"4' tall. No arthritis. Shoulder and hip pain. I have no 401K. Selling some property and will hopefully after taxes and commission have a good $175.000 left over. My wife has a good retirement with the county. She also retiring at 62...four months ahead of me. We have no debt now and own a new SUV and a later model pickup truck. I figured I might live to 70. Taking it at 62 and never look back. The way the World is and how our Government just "Loves" it's citizens...get when you can. 🙏

[@Redtopper02]

Start walking or exercising. Do something nearly every day that you enjoy. Drop the 50 # and that should help the health stats. Good Luck

[@mikebarr7718]

I was just like you and changed to a plant based diet and all the numbers and weight went to normal without any meds....hard to get sick on fruit and veggies...just a thought

[@oliphauntsneverlie6227]

Really no such thing as bad cholesterol.

[@ozarked2363]

Dave's take in this instance is pretty much how I have always viewed Social Security. I never took it into account in my financial plans because politicians could take it away or cut it with the swipe of a pen. I'm drawing it as soon as I'm eligible so I can at least get some portion of my money back, but it's strictly a bonus and will never be something upon which I am dependent.

[@JeanValjean875]

In theory they could, but in reality messing with social security is the third rail of Ameican politics. There's a reason the program has been around so long.

[@paulam408]

It's good to not be totally dependent on it but it's what many people do depend on. For me, I retired at 55 from my main job & kept working part-time at my 2nd job. Now I'm full-time at the 2nd job in order to get insurance but I'm waiting until at least 65 to take social security as I will get a lot more & if I take it now, it will mess with my current full-time employment. Most people are not in the same situation as this caller.

[@dyates6380]

I agree with you, but not for the same reasons. I don't know how old you are though, so forgive me. I always was of the mindset to wait until full retirement age and get the largest amount you can, but that changed a few years ago. Full disclosure, I just retired last December and just now, as in September - October, am getting my SS and I will be sixty six in less than two months. I know MANY people who not only took SS at sixty two, but also (if they were able to) also retired at sixty two. GET OUT and enjoy life while you can. As far as politicians go, there is NO QUESTION SS is going away, but (not if) but WHEN it does, it'll be sun setted. It won't go away all of a sudden and people already on it won't be affected, nor will people within a certain time period of receiving it be either. It's a totally unsustainable system and it's can't sustain itself with the lopsided (now, at least) ratio of people drawing versus people putting in to it. Take it as SOON as you can, but for the reason that tomorrow's not promised to anyone and I have known far too many people who worked HARD their whole lives and never collected a penny of it.

[@FirstHillSeattle]

@@dyates6380 This is exactly why I was deliberate in my career planning to take a job with a pension. I have 5 more years to retirement, and will get 60% of my salary in a pension. I also will take SS at 62 for the reasons you've outlined and that Dave highlights, but it's so nice to know that if SS goes away, I have my pension. So I don't have to be anxious about that. I know these are the things that most 20-somethings don't think about, but they should. In fact, we got rid of the pension option at our company because we were having a hard time hiring younger workers who didn't want to participate in a a pension plan. Go figure. Thankfully I was grandfathered.

[@WalshS7323]

@@paulam408my understanding is that the only option we have is either at age of 62 or at 67 to draw our security check. If we don’t take it at 62, then we have to wait until 67. Am I correct?

[@vl4n7684zt]

$3M w/ a paid-off house, 2 pensions, and SSN. Hope they can get by.

[@marshallhosel1247]

I’m probably the outlier here, but I view social security as an insurance plan. In the event of a very long life, there will at least be social security income if you out live your retirement planning life expectancy. Hence, I’m thinking of delaying until 70. I’d be interested in other perspectives.

[@fluffhead917]

That is an interesting thought. The entire situation will be different for everyone depending on 401k size. It also depends on if the market is way up or down when you retire. Not a good idea to start drawing from a 401k off a downturn..

[@fluffhead917]

@@laylow8648 Thanks for that info, it is good to hear real life examples. It’s a tough call for most people it seems. You might’ve made it easier for me to take it early like I’ve planned.

[@ourblazingworld]

take it at 62 and invest it and let that be your insurance plan even if you just put it in a stable money market checking account.

[@laylow8648]

@@fluffhead917 I wish I knew or if I / We can individually find out from SSA how much money we individually paid into the system in our lifetime. Because I want to live long enough to get every penny back along with some interest. I should never need it all, but some kid at St. Jude’s Children’s Hospital could sure use it. That’s my Legacy.

[@fluffhead917]

@@laylow8648 I may be wrong, but I don’t believe it matters how much you actually put in. Your benefit is calculated based on your highest 35 income earning years. The exact formula may not be the same for everyone. But they definitely use your top 35 years of gross income as a base.

[@mkirules]

Generally speaking, it is better to wait if you don't need it. Benefits increase by 8% per year, and if you work they take away some of the benefits. But, Dave is right, she doesn't need it so it doesn't matter when she takes it.

[@leemp337]

Nope. You Lose when you die. You are taking a risk. Plus I can make higher returns if I take early.

[@graydon479]

An 8% increase on nothing is nothing! If I take SS at 62 and live to 85 I will get the same amount that you do if you wait to 70 and die at 85. It’s a scam. What about health issues? Everyone seems to be overweight, have diabetes, heart problems, cancer etc. Telling people it best to wait is wrong.

[@cwheremonster8870]

No one here wants to hear common sense.

[@edwardglatzmayer5466]

Take note that Dave is giving advice to them, Not you or your situation. People who have done well and saved responsibly and do not necessarily need Social Security at 62, also have a different situation and unique tax dilemma to deal with that will definitely impact when is the the best time to take Social Security. Obviously, each persons retirement plan needs to be taken into careful consideration to determine when to take Social Security. Especially if people have too much money in a traditional IRA. A financial planner or possibly your accountant or tax advisor can help guide you best in making the correct decision for your particular situation. People who have not done as well and maybe did not or could not save as much for retirement, may need Social Security to maintain or possibly improve their lifestyle at age 62 or soon after. My point is don't make the Social Security decision until after you have carefully mapped out your specific situation and how it will effect your tax situation and needed lifestyle. You might also take into consideration, the possibility of potential economy downturns, recessions, and or depressions with rising inflation too. Good luck everyone!

[@leisure057blank3]

Yes I want to try and do Roth conversions.

[@gosman949]

yes inflation has been good to my SS check since I waited until 70 to draw!

[@miragexl007]

Good point..... But extremely long-winded To make such a simple point. Lol

[@Flipper86]

You can have too much money in a traditional IRA? Why/How does it matter how much is in an IRA?

[@KathySchmidt-r8k]

@@Flipper86

[@tonylevine2716]

I'm taking early too. What's really sad is when people call into the show with millions of dollars and still don't believe that is enough to retire!! And, he is going back to work? For what? You worked your whole life so that you can ENJOY RETIREMENT! Go enjoy the rest of the time you have left on this earth! It's almost like these old politicians who won't retire and die in office. smh

[@thomasmartin2743]

I am guessing you do not enjoy your work. Some folk find fulfillment in work. Adam and Eve tilled the garden even before the fall.

[@bman6502]

My advice to folks is the year before you want to retire, limit your budget to what income you’ll receive during retirement.. this will give you an indication as to how difficult it will be financially.. also, access what large expenses might be coming… does your house need a new roof that will cost $25k, new A/C?? These are tough to finance during retirement..

[@sd0753]

So her net worth (including the house) is $3 mil and he's suggesting she can safely pull $200k-$300k annually? Subtracting their pension and SS and depending on the value of the house, that could be around a 15% withdrawal rate.

[@burrelsk]

That statement he made about safely withdrawing six figures sounded dangerous to me, too. Elsewhere, Dave advocated an 8% withdrawal rate, angrily dismissing the 4% rule altogether. I suppose if you're goal is - the check to the undertaker bounces.

[@flyingburritobro68]

@@burrelskavg return in the stock market over decades is 7.6%. You can safely pull more than 4%. You can buy a CD for 5-5.5% now risk free so pulling 4% would still leave you gaining money at the end of the year.

[@philc.9280]

We were going to wait until 70 to collect to get a bigger check as we don't need SS right now at age 67 and still working part time. This video might change my mind as I never realized I would not recoup all of the taxes that we paid into the system.

[@damondiehl5637]

You can create an account with SS and get a report on your contribution years, and see how much you have contributed, to see if that is really true. Dave generally knows what he is talking about, but I'd want to check those particular numbers.

[@papasquat355]

It depends on when you are ready to stop working (or at least limiting income to the social security limits). I have no plans to work past 62, so drawing, even if it's not needed, makes the most sense. Especially considering my pension and retirement accounts that are in place. I'd rather bring in my social security and invest it than to wait years for a slightly larger check.

[@rubbersole79]

What good is it for people who are well off call in for financial advice? It's people not well off who need the advice.

[@lisaschumacher848]

It also made a huge difference that she came into money after her mom passed. Most my friends have a great net worth because of family inheritance. Not all of us have a pension too.

[@norm-nas]

Not a huge difference. The 300 grand will bring in about 10% of what their total income is. Figuring an 8% return.

[@rayanderson3164]

They were already multimillionaires before, and it added less than 10% to their holdings. Yes, it is still a good size chunk of change, but it had no real effect on their overall wealth. PS, pension income is really nice too.

[@scotthellmann8109]

They almost had 3 million already, they got $300,000. That is barely over 1/10 of what they already had. Lol not even close to making any difference whatsoever. 😂

[@cindifischer6919]

Some people made choices to have a job that has a pension when they were younger. Look at people who work in schools, so many teachers that I know retire in their mid fifties and then they collect a pension for years. I know a lady that retired from teaching when she was in her mid-50s and she lived to be in her mid nineties and collected a pension for over 40 years and collected longer than she worked. She never even paid in close to what she made. Taxpayers flip the rest of the bill.

[@Angela-tt5ik]

At 62 you get a smaller amount for a longer period of time. I would like that. It works if you never had a good job or health problems. Waiting until 70 you get more but it's assuming that you live til 90. When I retire in 2035 I will get social security but not what I paid in to it. I will take it at 62. It may change or end so I am taking what I can get as soon as possible.

[@TheMechanicj]

Take it as early as you can

[@evanserickson]

I did the math once and I believe you have to live until 77 or 79 to break even on social security payments if you took it at 65 or 67 instead of 62.

[@TheMechanicj]

@@evanserickson probably more like 82-85 to be realistic

[@James-yi1vk]

It depends. If you make really good money and love eat you do, probably a good idea to wait.

[@rajbeekie7124]

Dave is wrong wrong wrong. This couple will be getting anywhere between $45,000-$55,000 a year from social security. This is easily 40% of their earnings from the investment which is way less than the $3,000,000 of total assets. A house does not earn money. The social security at 40% is a chunk of change. Now, do they need the money? Probably not. However, it does give them more options.

[@AaBbCcDdEeF]

Dave doesn’t do your kind of math.

[@sd0753]

He made some bad assumptions but his overall answer was correct. Between pension and SS they will likely have $9k a month. If you don't have a mortgage, that's a ton of money. They are absolutely fine

[@readyplayerprime8195]

Husband's internal alarm bell is going off at the thought of his wife retiring and micromanaging the entirety of his time. That's why he wants to "go back to work."

[@notanomad9320]

Hah and they wonder why men go deaf the longer their married. 😂😂😂

[@rsross1970]

Spot on

[@Flipper86]

Not necessarily. My dad “retired” two or three times. He left his long time job and was self-employed in his late 50’s, worked for the Census twice, worked FT for a friend for several years, and then worked part time for the neighbor “kid,” at a funeral home until his health required him to quit in his late 70’s. He enjoyed most of all of his work.

[@wizardwingman3654]

I agree, if you don’t need it take it as soon as you can. Great situation to be in.

[@DrSchor]

if you dont need it why take it

[@mfrankel8321]

I would take social security at what the government classifies to be full retirement age… somewhere between 66 and 1/2 and 67. This way, you are entitled to the entire amount even if you are still working.

[@yellowtrain3161]

Social security is a joke, the bigger joke was when I found out that my railroad retirement is not a pension, it’s basically social security with a kicker. Save and invest, max out all retirement accounts, and just hope that social security/railroad retirement (in my case) will be the icing on the cake instead of the whole cake.

[@aolvaar8792]

between wife, kids, and I =~$5500/mo from SSA

[@mmp495]

💯. That's the best way to look at it. 👍

[@rayosullivan4398]

Send your check to me if it's a joke

[@yellowtrain3161]

@@rayosullivan4398 why would I do that?? I have already established that I feel there isn’t enough to go around. And apparently you didn’t understand the message. Layman’s terms:::: DONT COUNT ON SOCIAL SECURITY AS YOUR ONLY MEANS OF INCOME. SAVE AND INVEST WHILE YOU ARE STILL WORKING SO THAT SOCIAL SECURITY WONT BE YOUR ONLY MEANS OF GETTING BY. That’s the message kind sir.

[@wannamontana4130]

For many that are closer to the poverty line, it's not a joke. Its all they have.

[@Comeoffitman]

Applying the Windfall Provision when one has a government pension changes everything. I’m working until I’m 67 because of the ridiculous penalties of the Windfall Provision

[@briancox3776]

What if you have a government pension and small social security and wife has social security. Does the windfall provision apply to her when you die and leave her the pension.

[@genglandoh]

I love people like this. Her and her husband have $3 million and they still want to do the best thing financially. I guess is they will have a hard time spending their money in retirement.

[@peternorthrup6274]

It's all about choices. You must start working early. Pay your home off. Make retirement savings a priority. And try not to keep up with the neighbors. Or your friends. If you can't afford kids. Don't have them. At 62 I started receiving $2343.00. With the new COLA. My wife receives a little less. We do just fine. I retired at 55. I worked all the overtime I could so I could retire at 55. I was at craftsman level in my trade. Some people should not go to college. I was never out of a job. I always had money. I married a hard working girl. We built a life together. Every 4 weeks we get the SS checks. It's great. We call it play money. I never understood why people keep having kids they can't afford.

[@offgridwiththesmiths1860]

Great story!

[@BradCampbellmn]

Great post!

[@thepianist7084]

I don’t think anybody can afford to have kids when they have them. But it’s a good thing people do it anyway, and learn how to make it work, otherwise plans like yours would never be able to materialize without other people having children to keep the economy going so you can retire early.

[@windsongshf]

by the time a lot of people can afford to have kids after struggling and working full time in their youth, they're too old to have them, lol!

[@donnaroberts4513]

Do you deliberately didn’t have kids because of having more money? That is a stupid decision.

[@cbxxb4841]

Not doing people a service telling them that since they have 3 million saved over a lifetime that they don’t need to be conscious of money anymore. The reason these people have done so well is that they were careful!!!

[@davidmurray6070]

Agree with your premise, but I think what Dave is trying to convey is that at $3MM net worth it's OK to start taking your foot off the gas. It's much harder than people realized to stop focusing on wealth building after 30+ years and devote that time to living.

[@Frosty2014]

Very interesting never thought of it this way!! Love the new perspective but I’ve got a long way to go until I need this advice. Thanks for the great content Dave and John!! God bless guys!!!

[@TheOnlySgtRock]

This call was a joke. I can't believe with their net worth being north of $3 million they were even concerned about it.

[@kleindropper]

Imagine if you could take that 13% from the payroll tax and put it into your retirement investments instead of Social Security.

[@wannamontana4130]

Nothing to imagine. People won't do it. Behavioral finance 101: People increase spending in the direction of their take home income at most income levels.

[@froggiman1]

Its only 6.5%. If there was no SS then your employer would not have to forcibly match anything.

[@kleindropper]

@@froggiman1 The 13% is the cost an employer has to allocate to employ you. That 13% is going to the government instead of you.

[@froggiman1]

@@kleindropper No. You pay 6.5% into social security AND your employer matches that amount. They also pay 6.5% into your S.S.

[@kleindropper]

@@froggiman1 that is your money. It's part of the cost to employ you.

[@azteca6695]

What a "problem" to have.

[@charleywalker2982]

Thanks for sharing your knowledge and keep your videos coming please.

[@deniseryan4146]

And she's calling why?🤔

[@DrSchor]

to find out when to take ss, of course

[@jodylarson4697]

Dave said "You'll never get back out of Social Security what you paid into it." Did I hear this wrong? Because based on my Social Security statement, I got back what I paid in after 4-1/2 years. But I waited until 68 to start taking benefits--maybe that makes a difference? In any case, he's right that what age they take Social Security at doesn't matter. Good for them!

[@davidgerke7150]

I'm guessing you're looking at straight dollar figures. If you calculate what your SS contributions would have been if they'd been in a retirement account compounding every year, there's a good chance SS benefits will never come close to that amount. That's probably what Dave is referring to.

[@jodylarson4697]

@@davidgerke7150 That's just playing with math. It's meaningless what I "could have made" if I had done things differently. And that's not what Dave said.

[@richard77231]

Is that in raw dollars or inflation adjusted dollars?

[@Joenzinator]

@@jodylarson4697 The problem is, the option to do things differently wasn't given to us. My employer and I put $833/month into SS. Assuming those numbers don't change (which they will go up) over my working life, that will be ~$400,000. If I was allowed to invest that money, I would have over $4 million at age 65. Instead, I get a pitiful $30K/yr at age 67. So even by your math, I'd have to live to age 80 to "break even". And breaking even still means robbing me the opportunity to pass millions down to my children. It's a horrible program that prevents low/middle income families from accumulating generational wealth.

[@BrianW211]

You have to take the raw dollar amounts of what you and your employer put in and then account for inflation. That effectively means taking the amount you put in each year and applying the the CoLA adjustment for every subsequent year. I have never done this exercise, but I don't doubt that on average, a person does not get out what is put in.

[@philipepling]

Start taking Social Security as early as possible. The sooner you start drawing it the more likely you are to actually get any of it. The program is defective and will fail eventually, and once that happens you'll get NO checks. Smaller actual checks now are worth more than larger theoretical checks that will probably never happen.

[@aolvaar8792]

It is predicted to go to back to a pay as you go plan in 2033, 78% of current payout. ??? No checks

[@stevejohnson2108]

That is such BS. Its like saying spend your money now before it becomes worthless. You have close to 50% of retirees without any other income, you think those people will not vote anyone that touches their SS. Now the money maybe worth less and less but you will get your check.

[@youngtimer964]

Been hearing this since the 70’s

[@JeanValjean875]

Social security will always be funded because it is paid for WITH IT'S OWN TAX THAT ONLY GOES TO SOCIAL SECURITY.

[@bengaljam4550]

People told me the same thing nearly 50 years ago when I started working.

[@Suziebeee]

This question coming from this caller whose networth is in the millions is hilarious. 😃

[@dcallahan2074]

Next caller. I'm a billionaire, what age should I take social security?

[@joycew.6531]

LOL!!!!!!!!!!!!!!!!!!!

[@HumbledTeacher5]

I agree with Dave on 99% of things. He has been awesome. On this though, his attitude against Social Security clouds what is best to do. Social Security might not sound great (and maybe it isn't), but the $20,000+/year it brings to some people is significant. If you crunch the numbers (and I have) it is easy to see that HEALTHY people at age 62 should wait until 67 or even 70 to get Social Security. Those who have health concerns and have a good chance of dying early, should take the 62 option.

[@silverstar4289]

None sense. There is a hundred thousand uncollected dollars between 62 and maximum retirement age. You would need to live over ninety to lose Unless………. You are with the government and are encouraging people to not touch any money……..

[@DJBurrup]

I agree. I don’t feel like he asked enough questions before making his decision.

[@yogiandbooboo7232]

@@silverstar4289 🎯

[@LTVoyager]

@@silverstar4289Your statement is nonsense. The break-even point is far less than 90 years of age. And a key point that is often ignored, including by Dave here, is the survivor benefit. Yes, for the recipient, their SS dies with them, but this isn’t true for the survivor, particularly if the surviving spouse is much younger than the recipient. Taking SS as “early and often” as you can, is often very, very bad advice for a couple where the high earner is much older than the lower earning spouse.

[@kevinmonahan5425]

Break even age doesn't take into account whether you still have debt of any form that could be paid down with SSI or, if the extra income isn't needed, the growth over 8 years of investing SSU beginning age 62 versus higher monthly check at 70. One relative could get $800 per month at 62 or $1600 at 70 (on top of government pension) and decided to wait for higher check instead of helping pay down his mortgage or investing it for 8 years.

[@BagsNBaguettes_327]

I would totally withdraw NOW, millionaire or not. That’s my money that I’ve paid in. Get it now.

[@mandypdx]

$100 now for life vs $150 for life and wait 2 years.

[@d_all_in]

That's not how SS works. It's not your money that you paid in. The money you paid in went to pay someone else. It is not held in an account for you.

[@aolvaar8792]

Average Indexed Monthly Earnings (AIME), three bend points are 90%, 32%, 15% if you are poor, there is a point where you're drawing other people's money, So, may not be your money.

[@youngtimer964]

This was my mother-in-law’s approach. Hasn’t worked out at all for her. Stuck living with no money.

[@nathanconner7984]

Waste of a phone call lol

[@mrgeorgeburdell]

Start taking it as soon as you can and invest it the way he describes investing other investment assets. You will end up with more money in your posession in the shrt term AND the long term.

[@sd0753]

The average person doesn't save enough for retirement. These people have to work until full retirement age for a chance at a decent cash flow in retirement.

[@wannamontana4130]

Behavioral finance 101: Most will find a way to spend it.

[@jasonbroom7147]

The ONLY reason to delay taking Social Security benefits, is if you have neglected to save for retirement and you basically know you're going to live past the age of 82, and even then there's a discussion to be had about whether or not you (and your heirs) are better off if you take SS benefits "early".

[@aolvaar8792]

NOT the ONLY reason. In order to avoid the tax liability of the RMD, you live off and reduce your investments. Allowing your SSA to grow by the 8%/yr

[@jasonbroom7147]

@@aolvaar8792 - Which only make sense (or cents?) if you live to be 82 or older. It's just math.

[@aolvaar8792]

@@jasonbroom7147 ???tax liability of the RMD Let's say $5MM in a trad IRA, use ~25 factor>>$200K required distribution. But instead, you start to pull $200K/yr at 59 By 72 you reduce to ~$2.5MM>> Now only required to withdraw ~$100K/yr

[@jasonbroom7147]

@@aolvaar8792 Don't be absurd. If you've got $5M in a traditional IRA, what you do with your SS benefit doesn't make any difference whatsoever. Also, the math on your hypothetical is way off. If you pull $200K/yr from a $5M account, the balance never goes down.

[@aolvaar8792]

@@jasonbroom7147 RMD, Required Minimum Distribution your comment: the ONLY reason to delay taking Social Security ... By reducing your IRA holding, ~$25K less in taxes because your RMD is $100K less

[@AnnMitt]

A pension changes everything. Be careful when comparing yourself to folks who have pensions.

[@RonniewbNC]

My plan is to start drawing at 62 and invest it, while living off of military pension and part-time income.

[@PNdebt-hc2tg]

But the part time income and pension count as earnings. I have the same problem at 64-1/2. Pension and part time work will be penalized. Wish I could have opted out of this ponzi scheme years ago...

[@RodneyDempsey-o8w]

​@@PNdebt-hc2tgyou will not be penalized on your military retirement on part time work only if you go above a certain limit.

[@dorenestewart5084]

Great stocks and I just bought in on them, but I'm interested in making a short-term profit, let's say turn a $150K to $ 500K in 6 months, I'd appreciate tips on how what stocks to buy to make this much profit.

[@dorenestewart5084]

@usmansaad526 That sounds great and how do I connect with her?

[@dorenestewart5084]

@RonaldOlson2 Okay I just found her website and left a message for her. thanks.

[@commonsenseisntcommon1776]

Bs troll

[@helloitsmehb]

If anyone knew that why would they tell you? Lol😅

[@stephencullum8255]

Very math nerdy. I made a spread sheet on when to take Social Security for both my benefit and the wife's benefit. Everyone has a different situation. Long story short, if we waited until I turn 66 my full retirement age to take it, I would be 87 and the wife 92 to break even. It was a no brainer. Most people die before those ages.

[@DrSchor]

you are not most people. you are you

[@ZacharyBuhler]

My parents are almost at this stage, take it early and often because it’ll dry up soon! 😂

[@lizg1976]

😂 I hate the goody two shoe calls. They re just bragging

[@gbradley5765]

What is the best solution for your health insurance coverage? If retire at 62 will still need health insurance till qualify.

[@michaelvanbuskirk8845]

I have to wait until 67 as it will be our primary income. My pension is only $530/month.

[@marysneed7654]

I would say if you need it take it early because you have to live past your late 70's, early 80's to benefit from taking it later. Even if you do live longer, will you be able to do what you want with the extra money. You never know what health challenges will come up. You could also use it to pay off a mortgage if you have to!

[@heymoe1179]

Putting in 6.2% of $100k for 40 years...would be $248k. Live anywhere near 80 years old and you will for sure get that and much more back. I don't know how Dave gets away with saying "you'll never see what you put in."

[@wannamontana4130]

Indeed, ... with people living longer, they are generally getting more out the the Social Security System than they have ever paid in.

[@jerede7731]

That’s assuming you bury the money in your yard and earn nothing. By the way your employer puts in 6.2% as well which would go to you if SS wasn’t around.

[@heymoe1179]

@@jerede7731 Most Americans don't have the discipline to invest that money...and there is no mandate employers give the employee that 6.2%.

[@jerede7731]

@@heymoe1179 point is your example is silly. There is an important financial concept regarding the time value of money which your example ignores. How about you give me $10,000 today and I’ll give it back to you in 20 years? You good with that?

[@leemcfarland4769]

If you don't need the money, take it early at 62. Keep the money in your investments and make the money there.

[@strajearocks11]

Some people just call in to brag & get praised. Alot of her savings is from inheritance.. I would rather hear advice given to people who need it.

[@harryl7946]

But as she stated: $300k came from inheritance and they have 3.1 million in net worth. So where did you hear she got a lot of her savings from inheritance? Some yea but “a lot”? I don’t think so.

[@strajearocks11]

@@harryl7946 yes. $300k is alot but my real question was why is she calling in to ask if she should retire with all her money?. My point is that it's a no-brainer that she should retire & she's pretty much bragging that she saved/inherited her money. These type of calls are so annoying & denying advice to others who actually need help.

[@86309]

how do you count the house as something that brings you income or is counted as part of your worth...? you have to live somewhere and unless you sell, thats not income...yes I know you could sell and downsize

[@cwheremonster8870]

Approximately 8% a year extra by waiting.. that’s an amazing guaranteed annuity. Listen.. I’m not saying to wait ‘til you’re 70. But holy smokes. I’m stunned.

[@PatriotSteve]

8% of little is still little. Is it worth putting of retirement for a few hundred extra bucks?

[@DrSchor]

you really don't get it all. learn why it is not an annuity for your own sake

[@angelamilliken2992]

I heard Dave say once that by investing it you could get a better return. Then you could leave it for your children. He said You can't leave your monthly social Security checks for them when you die because it stops.

[@THEENERGYINHALER]

Why did the team take this call?

[@HorrorFreak68]

Social Security is a retirement income supplement, just like a pension. If you're never going to work again, take it now. If you're going to continue working, wait until age 67.

[@jeffs.692]

In Jan. 2020 I retired at 62 1/2 my wife who is 18 months younger than me also retired at 62. It was the best decision we ever made. The first thing We did was payoff our mortgage also a few other bills. I had two brothers who passed away due to cancer, one passed after drawing SS less than a year. The other one was a little over a year away and never drew a dime. The reason the government dangles that big payout at 70 is they're banking on you not making it!! I also receive a pension for working 25 years for a National tire co. My FRA was 66 1/2 which means I drew 48 months of SS early, my break even age is around 79. Meaning after 79 I'll start losing money. We have a healthy 401K & also other investments, which we use to travel & splurge on our grandkids.

[@jeffs.692]

Just like to mention that we have been Blessed beyond measure & that we believe in giving back to the Lord for all his many blessings.

[@scoutandscooter]

How much is the house equity? How much are the property taxes?

[@rayanderson3164]

I'm not a fan of poo-pooing the idea of when to take SS. Yes, they have 3 million, but it would still be probably 40-50K a year as a couple and significantly more than 1% of their annual earnings even on 3 million. I agree take it ASAP assuming things like Roth conversions or future work would not negate the benefits or cause you penalties on your SS from working or taxation while under your FRA. The problem is real, and it seems like he left her with a "who cares " answer. Taxes and SS earning penalties if her husband returns to some kind of work should govern their decision. -Just my practically retired 2 cents.

[@mydogharlee]

As a former law enforcement officer from CA we didn’t pay into SS but prior or after we did pay into it however it doesn’t matter for us because our pension will not allow us to draw the full amount from SS. I might get 50.00 from SS, so basically I put in for nothing and if I get a job I’ll never see my contributions. My wife however will and she has decided on 62 . If we can we will save some and reinvest some. We wouldn’t make it in CA if our home wasn’t paid off and we hadn’t moved to another State.

[@dbloyd2]

Doesn’t she have to give the money back if she is bringing in more than 40k a year from interest income?

[@51dbail]

So like 30k a month before SSA? When Rockefeller was asked how much money do u need? At the time one of the richest men in the world. He said Just a little more!

[@randy74989]

It depends! Too many variables to make it an easy decision. Thus, you need to discuss your options with a Certified Financial Planner (CFP) for an hourly fee or maybe even your CPA.

[@teresaellis895]

Literally heard of lady who had 1 million at 90.She literally outlived her money in senior care...

[@tbsmith-ht6ej]

I LOVE IT when Millionaires call and ask when they should draw S.S. and or ask if they have enough money to retire. Especially when their home is paid off and pensions and inheritance are added to the equation. 🤡 World.

[@BrianW211]

Yep, if you don't need it to live, take it as early as possible and invest it. You need to make a return of only about 5.5% to practically guarantee you come out ahead during your lifetime (i.e., you will have more money than if you had waited until 70 to take SS, even if you live into your 90's). Of course, the money doesn't mean anything to you, which is why Dave says "It doesn't matter.", but the investment could easily turn into a couple million dollars, which could mean a lot to your heirs or a charity.

[@fluffhead917]

Don’t forget to include any taxes you will certainly have to pay if you do invest it. But I think it’s the smart thing to do regardless of taxes, because it’s money in the bank that you don’t need to wait 8 years to see..

[@steelcastle5616]

Gotta disagreed with a couple of points here: First, there are lots of people who have gotten more money out of the SS system than they put in (consider SSDI). And unfortunately, there are lots of people that use SS as their primary source of retirement (for them it's no joke). That said, I agree with Dave regarding this couple's financial situation makes SS income a lesser issue in their retirement. They can always use it to play monopoly.

[@mkirules]

It depends on how you view his phrase "negative rate of return." In an absolute sense, it is not true. Social Security pays out much more than taxes paid in, which is why it is running out of money. However, compared to an index fund or an average mutual fund, it pays much less, meaning that in the economist's view, it is a negative rate of return since they are talking about returns in a comparative sense.

[@aolvaar8792]

@@mkirules up until 2020 the SSA Trust Fund was getting larger. Cause in 1984, Reagan saw the Silver Tsunami and increased contributions. If you had an AIME of $1000/mo for 35 years you would draw close to that in retirement.

[@JeanValjean875]

​@@mkirulesYes, but if there was a terrible market downturn the year you retired, it would be nice to have some source of income that wasn't directly affected.

[@teams3345]

I agree. I turn 62 in 3 days. My first check comes January 11th of next year. I am also spitting bubbles. Lol

[@websterhays8352]

What is the rush to get to the Federal welfare trough? Wait until you are 70 to collect. Your check will be larger.

[@teams3345]

@@websterhays8352 Nah, I am sticking it away in my savings account getting about 4% interest.

[@websterhays8352]

@@teams3345 That is not what wealthy people do. What is the rush to be first in line at the Federal welfare trough?

[@teams3345]

@@websterhays8352 Why not?

[@websterhays8352]

@@teams3345 That is like asking "why shouldn't I finish school"? The answer is obvious.

[@angus6032]

YOUR longevity is key, however if you are married your spouse's longevity comes into play and should absolutely be considered. If you pass your spouse will live off of your choice.

[@silverstar4289]

Drawing immediately at retiring at 63. Will use that money for buying cool stuff I want, and not dip into my IRA or other investments, to permit them to grow at high base levels.

[@websterhays8352]

What is the rush to get to the Federal welfare trough? Wait until you are 70 to collect. Your check will be larger.

[@silverstar4289]

@@websterhays8352the math is it’s the same amount at age 80, regardless of when a person begins drawing. Hardly a welfare receipt. It’s a ponzie scheme, , but it’s isn’t welfare

[@damondiehl5637]

If he is going to get a job, he should not start SS payments. You start getting penalized once you make over about $21k, losing one dollar for every two you make above that. SS doesn't figure this out until a couple months after you file your taxes and then they recoup it by not paying you anything until the full amount owed is recouped. So you would go though that for a couple years until he hit full retirement age. Better to wait until full retirement age and then turn that spigot on.

[@jgallone]

Take that SS and give it to local charities...it might not matter to you but it should could make a difference to somebody else's life.

[@yarnchickenkim]

One thing to be aware of that I didn’t em hear mentioned: you can only make a certain amount of money at a job each year if taking SS. If you go over that amount, SSA wants some of that back. So be careful taking a job “in retirement.”

[@KLA2789]

I came here to find this comment… yes this is true up until full retirement age

[@LisaEgstad-CompassRealtor30A]

Common misconception. That only applies if you have NOT reached FULL RETIREMENT AGE which is calculated on your birth date and earn over $20,000/year. Once you reach full retirement age, you can earn as much as you like and not be penalized by Social Security.

[@wannamontana4130]

I think this only applies to earned income, not unearned ... which was the fact pattern of the caller.

[@FinancialGuyLou]

​@@LisaEgstad-CompassRealtor30AThat's not true. If you take distributions out of retirement accounts like IRA’S and 401ks, that is counted as provisional income and is subject to Social Security taxation no matter what your age is.

[@babydollkincaid4584]

True

[@DouginHanover]

I'm 67 and make almost $200K working from home now (no, not MLM, but as a software developer for a large IT firm). Paid off our home over 20 years ago now, but in previous years I had a few periods of unemployment (which happens to contractors) and my wife never worked, and as a contractor for most of my career any built in retirement plans were hard to come by. I finally got into a 401K and IRA a few years ago, so I still work to catch-up on those. Since I am now in a higher tax bracket getting Soc Sec checks would just not benefit as much, so I am holding off on that till I am 70.

[@karenjensen2345]

What if you decide to work till 65? Should you still take ot at 62?

[@richardg4817]

If you make over a certain amount before your FRA, you will be penalized with a lower SS check. Be careful about taking it at age 62 if you are still working! Do the research and you will see what I mean.

[@texasskygirl7890]

No. You won't be getting the full amount at 62.

[@stewdogg42]

Pension? What’s a pension?

[@lowridingtrucks88]

Dave always surprises me with his knowledge.

[@sarawilliam696]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[@Justinmeyer1000]

True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.

[@foden700]

Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.

[@KaurKhangura]

This is exactly how i wish to get my finances coordinated ahead of retirement. Can I get access to your advisor?

[@foden700]

‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@KaurKhangura]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@RicBentley]

the math discussion has to take into account the taxes paid on SS (and the 1:2 dollar reduction in SS for income at 62) before one can start considering the investment returns. If I compare going from the nominally 35% tax bracket (because I am still working at 62) to, say, the 15% (because I am living off of tax free Roth) I have to reduce the SS amount by another 20% before i start racking up my investment returns. Even If I get the Dave Ramsey assured 10% annually, I am still behind. I wouldn't take SS until I am ready to stop collecting pay checks. IOW...when do I take SS? When you are done getting paid by an employer would be my answer...I mean unless you are still working at 70 where there remains no benefit to waiting. The part about having money to leave your loved ones versus zero dollars is the most compelling point I have yet heard for taking SS at 62.

[@DaveM-FFB]

When should you take Social Security? Best answer I heard was "How long do you plan to live?". The answer to that question will determine when to take SS. If you're not likely to make it to 75, then taking SS at 62 might make the most sense. But if you expect to live to 90+, well maybe you shouldn't take SS early.

[@steelcastle5616]

Like most people, I'm a "take the money and run" person. Better to have 70% for 5-6 years (then for life) than to have nothing for 5-6 years in order to get an extra 30% at MRD. Living to 75, 85, or even passed 90 will give me practice living on that 70% (can't see that extra 30% making much difference).

[@DaveM-FFB]

@@steelcastle5616 I generally agree. The problem with waiting until 70 to collect SS, is that you have fewer years to enjoy the money you receive. If you enjoy traveling, you'll do most of your traveling from 62 to 75. On average, you'll be less active, and less able to travel after 75. So would you rather have 13 great years to travel, or just a few?

[@REVECRIT]

I’m taking SS at 50 with my genes

[@steelcastle5616]

@@DaveM-FFB I pick the 13-years and get the money as early as possible (62).

[@WeBeatMedicare6969]

The million dollar question nobody knows is how long they will live

[@miketracy9256]

Everyone we know our age who took it at 62 now regrets it. Everyone we know our age (76) who began at 70 is convinced that it was the right choice. If we live 6 more years, we will be ahead, and the fact that 15% of SS is tax-exempt, is a bigger deal than most people understand. By age 90, most of us will be way ahead of even what we paid in SS taxes since 1965. If they want more income now, to begin drawing it down from their taxable retirement accounts might make more sense, especially when tax rates go higher in 2026.

[@SergioHernandez-ft9uv]

So they can buy more diapers

[@FreedomsNurse]

"By age 90" most of us will be dead before we reach that

[@qdog568]

All that chatter to brag that she's a millionaire.

[@timlinator]

Similar situation. 56 with net worth of about 5 million. I'm taking SS at 62.

[@kevindepew8193]

I like Dave Ramsey, but I don't view Social Security as not mattering even if you have $3 to $4 million. I should get the maximum social security check (I think about $3500/month at full retirement age) and I don't view that as nothing. I also don't see how you generate $200,000 to $300,000 of income on $4 million with certainty. That is 5% or more and doesn't account for inflation. Getting 5% or more above inflation on returns isn't guaranteed.

[@JamesSusanka]

the sad thing is that social security was taken in the first place. agree with dave on this one get as much as you can.

[@catlady2795]

Way to go! You did well.

[@managingmonasmoula9811]

So, let me present this scenario…what if a person is NOT a millionaire and retires at 57? Or even 60? Does the SSA penalize a person for retiring too early? What if the person takes a part time job just to keep socializing and for some pocket money…will SSA still penalize the person from leaving their full time 25 year job too early?

[@dantheman6607]

Yes if you don’t have 35 years of income say you have 30 and retire early those 5 missing years will equate to zeros lowering your final payout amount.

[@damondiehl5637]

You can't even file until you are 62. You can look at it as a penalty or a reward, it all depends on how you look at it. At 62, you do not get the full amount possible. You get 8% more for each year you delay filing, up to your full retirement age (FRA). If you file before FRA and you continue to work, if you make more than approximately $21,000, your SS payment is reduced. For every 2 dollars you make above 21k, you lose 1 dollar from your SS payment. And in true government fashion, they figure it out based on your tax return, so there is a delay. Once it is determined that you were overpaid, they recoup your entire SS payment until the overpayment is recouped. My wife retired at 62 and filed for SS, but she got bored so she took a part-time job. That unfortunately turned into a full-time job, and we went through the scenario I described. Three months after filing our taxes we got a letter from SS and she didn't get a payment for three months and only a partial payment in the fourth month. Also see dantheman's response to your post, about not having 35 years of income. Those blank years skew the average, badly.

[@volsboy672]

What if I am working and making good money? I'm 62. Why should I take it and let them penalize me my rightly earned SS? My job is easy enough to work many more years at it. I manage a self storage business. Tell why to take it now or wait?

[@DrSchor]

You are going to have to decide that yourself. Why do you want a you tuber telling which course to take?

[@rkirsch264]

It Does Matter... The 3 million dollars included her home; you can't draw a monthly income from that. Also, if he's going to continue to work, the SS income will be reduced by 1/3 for each dollar you make.

[@fishmojo865]

Well shucks folks, you could just talk you old buddy Tom Selleck about getting one of them there newfangled reverse mortgages. You trust old Tom, dontcha?

[@perkyhussling]

Dave Ramsey say Social Security is a joke but one thing about it is its my money.