“Being around other people that cause you diseases?” One of the silliest things I have ever heard. My dream retirement… handing out samples of sausage and then doing my laundry at the laundromat and getting free gift cards. Wow
But you get to go home to your trailer when your done working every day. Livin' the dream! People taking retirement advice from this guy deserve what they get. A lifetime of camping in a metal box in a Walmart parking lot.
For me I waited till FRA and the difference was $700 more then taking it at 62. I waited because my thinking is , if I die I won’t need it but if I live I’ll need every dime and $700 to me was a lot to give up. That’s $700 a Month not a year for the rest of my life. My dad passed at 94 and mom is soon to turn 94 still going..Thats my side hustle
Yes, my father is 96 and my mother passed away at 93. I just don’t understand why everyone thinks there going to die early. Some certainly will but many others will will long into their 80’s and 90’s.
Deb - You are smart. Too many young kids are suckered into worrying about if they die young and get cheated out of collecting SS earlier. Bad mentality. They are living their lives in fear of dying. I enjoy working in my 60s. If I die tomorrow, no regrets. No complaints. It was fun ride.
You say " quit your job @ 62 and collect SS then "Get a side hustle " It doesn't make sense to me. Why not just plan to retire when you've saved enough. Then if you need the SS income to live on just start collecting it. I'm 68 and still work part time ( my side hustle) and I have enough income and savings to live comfortably without SS . If I start collecting Social security today my annual income will be high enough to require me to pay the higher medicare premium (IRMAA). So I'll wait until I'm 70 to collect my SS benefit. If I had the SS income from 62 to 70 it would absolutely have made no difference in my freedom to do what I want. Not everyone is depending on that money at 62.
What I decided is to contribute more into my 401 & savings. I do not want to have a side hustle or know I will be okay medically to work one. My mom lived until 90 as well as most family members. I could die before I collect at 67 or soon after , but I sure don’t care, I’ll be dead.
I'm 61, working from my 3,200sqft house 5-6 hours a day making $100,000/year. Go on runs when I want, watch TH-cam videos, ride my Peloton, fish in my pond behind my house, sit out by the pool with a laptop. As long as the work gets done, it's fine. Definitely not prison. I think if you didn't plan properly, you are stuck taking SS when have to and living in a trailer at Walmart. I could not even take SS and be fine. My father taught me to invest in myself first and then pay the bills. He also said seek professionals for advice. Tim is not a professional. Hell, I'm more retired than he is.
@@MikeRakowski Kinda sad to watch these videos and read the comments. Do people really think living in a travel trailer, staying in Walmart parking lots is 'crushing 'it? If so, that's more sad than actually living that way.
@@BenTrue75 Thanks for the reply 9 months later!!! I did stop watching his garbage. Rather than watch a poor retiree in a tin box in parking lots, I went to Australia, Chicago, San Francisco, Dallas and other local beach trips to see the world. Keep getting your advice from the poor and uninformed so I there is plenty of room on my flights to Boston and New York coming up!
I think your over thinking what he says when he says “free money”. He just means that it’s $ that you haven’t seen. It’s invisible. Of course he knows he paid it! He isn’t stupid.
Your math is horrible . You missed the whole point . You went back to work !! Retire means stop working . I think you have semi-retired confused with retired .
In a Walmart parking lot instead of paying RV lot rent at Florida winter rates $700 a month . I know , I live here too . In Europe your known as Gypsies not retired.
Most people would not be able to retire and be HAPPY, doing the camper and Walmart/ Cracker Barrel lifestyle. The video should be "This lifestyle and income amount is working for me"! Not everyone is working at a "Prison job". Its nice having a job where you have a purpose. For many people, once retired you sometimes loose that purpose and its hard to deal with. Bottom line, we all have reasons why we are doing what we are doing.@@kurtbagin7356
It's not a binary choice between do nothing all day and work for someone at a desk for 8 hours a day. Being retired means that you control your time and decide how to use it. If one chooses to pursue activities to stay engaged and earn a little money in the process, they can still be retired. It's all about being in control of your time, which is the most finite resource any of us has.
@@KayFabe87 being a member of a trade Union gave me that freedom all my life . We always had a contract that said if I gave my employer 3 days notice that I needed time off he had to allow it up to 3 weeks . Now we never got paid for days off but when you make a solid living , that doesn’t matter . I always took 6-8 weeks off a year . So I guess I’ve been retired my whole life ? Why quit a job that pays $45 an hour plus $22 an hour in benefits just to live like a gypsy ?
@@KayFabe87 But he is not choosing and that is the difference. He has to so he can make ends meet... Or else he wouldn't be using a Walmart parking lot for home.
It does pay to wait. If you wait until age 67 to collect, the monthly amount you will receive is 42.86% more than the amount you would have received at age 62.
Tim, your numbers assume a couple of things. First you assume you will be able to make that $22K a year from 62 to 66 and then you assume you will be able to make $60K from age 66 to 67. As far as the lower amount goes it depends on your job skills and how much you are willing to work. Lets say that you can find a part time job that pays $20/hr. At that pay $22K is 1,100 hours per year of more than half time. Even if you find a $30/hr part time gig you have to work 733 hours a year. In either case that is going to significantly impact what you can do during the year. Either you work full time for 4-7 months or you work part time all year. In either case you are tied down by work. Then there is making $60K from 66 to 67. Unless you have skills that are in demand, it will be hard to find a job that pays that much since you will have effectively been out of the full time work force for four years. You will also be competing with younger people with the same skills who will be at the job much longer and will thus be more attractive to the employer who will have to train the new hire. Then there is the elephant in the room. How do you live when you can no longer do that side hustle and have to get by on only your reduced social security? Also I suggest that you take a look at the Social Security Actuarial Life Table (www.ssa.gov/oact/STATS/table4c6.html) when it comes to life expectancy. You will find that if you are 62 today that your life expectancy is 81. Similarly life expectancy at 67 and 70 are 82.6 and 83.6, respectively. My wife just turned 79 and her statistical life expectancy is now 88.7. Note that those are population statistics and mean little for an individual. You have to take your health and genetics into consideration when looking at life expectancy. Finally, you need to learn the concept of marginal tax brackets AND you need to learn how Social Security Benefits are taxed, which they definitely are. I will do a couple of simple tax calculations for you. First I will calculate the federal income tax for the single person who takes Social Security at 62 and gets $1,700/mo in Social Security and works a part time gig to earn 22K per year. That person's taxable income is $22,000 earned income + $3,600 taxable Social Security = $25,600 taxable income. This persons standard deduction is $14,600, so the person owes tax on $11,000. $11,000 in all in the 10% marginal bracket, so the tax is $1,100. When that person turn 65 they get an additional $1,950 standard deduction so their taxes decrease for that year to $905. If that person then makes $60K from age 66 to 67 their income tax jumps up to $8,427 because 85% of their Social Security is taxable due to their income. Now lets consider the person that works from age 62 to 67 and makes $60,000 a year. That person's annual tax will be $5,216 until they hit 65 then it will drop to $4,982. That person's maximum marginal rate is 12%. An individual 65 or older can make up $63,700 before any of their income goes into the 22% tax bracket and only the amount over $63,700 is taxed at 22%. Total after tax income from 62 to 67) for the person in your scenario who take Social Security at 62 is $237,368 and the person who works to 67 making $60,000 has total after tax income of $334,388. Also, it is very likely that the five years from 62 to 67 will replace five years of lower income in the worker's Social Security calculation of their full retirement age benefit, resulting in a higher full retirement age benefit that what the age 62 retiree's benefit was based on. Final I would suggest that working 1,466 hours a year in a $15/hr Walmart job won't be the worker's paradise that you envisage.
@todddunn945 Todd, hopefully some of Timmy’s subscribers will read your comment and see that what Tim is putting out is incorrect. Hopefully they will call SS or a financial advisor before they take his advice.
Todd - That's one heck of a novel you just wrote...lol. Seriously though, you thought this out. I don't like the "side hustle" route, unless you just want a few extra bucks or want to keep active. I can retire, but I dont want to. Too many benefits and perks to abandon work right now. Tim appeals to those with itchy ears.
@@JohnBowl14690 I am a retired professor, you have to expect it. I ran a small business for a while to keep me busy, but quite that when I was 68. Now I have a TH-cam channel. It brings in some money, but I just leave it in the bank since it isn't enough to bother with investing and I don't need it. However, TH-cam gives me something to do, such as filing more complicated taxes.
I get angry every time I hear FREE MONEY!...Its NOT FREE! Its not a handout. Its $ we paid in every paycheck..as well as $ our employers paid in as well...were just getting tgat $ back.
Hi Tim love your channel but I kind of have to disagree when you say social security is free money this is money that we worked hard for you and me and paid into it for many years and it's also not in the entitlement it's something that we've earned the right for thank you
Yep! I been working since I was 14 and 61 now, I paid in this whole time, I thought if I got early retirement I wasn’t able to work or get kicked off my early retirement, am I wrong in thinking this?
I think he means passive money not free money, meaning that during the month you receive it you don’t have to work or do anything for it since we worked for it years ago.
You dont understand how tax brackets work. You do not pay a particular percentage on your entire income. In your example you would only pay the 22% on the $44k +
It's not a binary choice between do nothing all day and work for someone at a desk for 8 hours a day. Being retired means that you control your time and decide how to use it. If one chooses to pursue activities to stay engaged and earn a little money in the process, they can still be retired. It's all about being in control of your time, which is the most finite resource any of us has.
@@KayFabe87 Having to do something and deciding to do something are 2 different things. If you have to have a side hustle to live, you definitely are not retired and not CHOOSING to spend you time that way, you HAVE too.
Tim, no disrespect, but please stop implying to people that taking SS at 62 is the only way to go. It depends on everyone’s individual financial situation. There are many reasons someone should wait, not just that “one reason” you speak of.
No disrespect to you, but I think you’re giving your opinion as well. I’ll upload videos, saying what I believe, that is my right, you are welcome to create your own TH-cam channel and make your own videos. Where people should have concern regarding what people are saying on TV and social media would be more towards the media that’s destroying lives and deviding our country. 😎Focus on the bigger picture rather than on Sarasota Tim, proving that you get more money by collecting your Social Security earlier than later. 😎
I want my money at 62. I also want to stay busy and decide what I'd like to do as a side hustle. It gives us freedom and a guaranteed amount of monthly income.
I worked with a super guy and bumped into him on a thursday....he was 61....we chatted about retiring and he daid he was done at 62 and was gonna hang it up. He died the following monday morning in the shower getting ready for work. I retired at 62. Im lovin my good health and life. Best desicion i ever made.
I retired at 59 and I don't regret that at all. My plan is to wait until I'm 70 to file for Social Security. I don't have a problem with collecting late and leaving money on the table if I happen to die early. That doesn't worry me at all. I worry more about outliving my savings, since I expect to live until I'm in my mid 90s.
Our TH-cam channel has less than 5k subscribers- 7% of Tim’s. We make around $10k/year from it alone with no income from Buy Me a Coffee, Patreon, selling products we got free in exchange for a review, gift cards from subscribers, or Amazon affiliate links. We haven’t gotten that far yet! I’m thinking Tim has reached or surpassed max earnings allowable on SS and has / is going to see his check reduced.
Tim, I wonder what happens to people who take the reduced amount at 62. Let's say you get $1,700 a month reduced amount + COLA for 8 years, but what if you hit 70 years old and your health deteriorates to the point you are unable to do a "side hustle", will you be able to live on that low of an amount for the rest of your life? Or will you have to go for food stamps and really struggle? The additional $500 difference if you waited would mean a whole lot at age 70! 😮 That is a scary scenario.
I was just thinking the exact same thing. This is a great question. I hope he answers it. I love Tim's channel and this is a real question I have. I am not trying to be rude or anything. I have the same question. I wanted to send him a personal email, but I was not able to prove I was not a robot and was not able to obtain his email.
According to my last statement from Dec 2023, there is an $1125 difference between 62 and 67 so it makes sense to hold off if I can. Always considered what you'll net not what you gross.
Hi Tim. Your analysis of Social Security compares it to a banking product. The reality is that Social Security is an insurance product. Insurance against living too long! By collecting early, you will pay the price if you live a long life. When you reach your late 80’s, expenses will have gone up and you won’t be able to work a side gig! Interested in your thoughts!
The only drawback to what you say, is if your health gets bad at 67, and you can't work a side hustle. You are debt free, but stuck with a small check, for the rest of your life.
Another angle on this is if your health gets bad you may spend less as you won’t be getting out to do much. You will buy less to no clothes, use less of many things in life if you are homebound and sick. Sad to think about but a reality.
@@LifebyLisa4444 But you will spend more on medications and medical bills so it won't matter if you stay home. Medical cost are higher than anything you mentioned by far!!
Tim, its not free money, dude they took it from you all your working life. If you could have put that money in an investment mix over your working career you would have made 4x or 5x that amount. You would be getting 10K a month. As far as the SSA caps on your wages. You pay 6.2% & Your Employer pays 6.2% into SSA Max pay in for an individual in 2024: $10,453.20 The amount is increased a few hundred dollars every year. It used to be as low at $5,400.00 Your salary in 2024 would need to be $174,000 to reach the max SSA pay in cap.
There are ONLY 7 tax brackets in the USA: 10%, 12%, 22%, 24%, 32%, 35% and 37%. There is NO 4% tax bracket. NO MORE MISINFORMATION, OK? Why not host a financial planner or a CPA who actually knows what they're talking about!?!?!?!?
You are obviously not familiar with the concept of 'effective tax rate'. All of your income is not taxed at a single rate if your income straddles multiple thresholds. For example: If your taxable income was $40,000 in 2023, you get taxed 10% on the first $10,275 and 12% on the remaining $29,725. Your total tax due is $4,594.50 for an effective tax rate of 11.5% Factor in deductions and credits and that rate can go even lower. www.irs.gov/filing/federal-income-tax-rates-and-brackets
You are obviously not familiar with the concept of 'effective tax rate'. All of your income is not taxed at a single rate if your income straddles multiple thresholds. For example: If your taxable income was $40,000 in 2023, you get taxed 10% on the first $10,275 and 12% on the remaining $29,725. Your total tax due is $4,594.50 for an effective tax rate of 11.5% . When you factor in credits and deductions, the tax rate for 50% of US taxpayers falls to 0% They actually receive more from a tax “refund” than they actually paid in federal income taxes. www.irs.gov/filing/federal-income-tax-rates-and-brackets
I retired early at 56 and love your channel, but please, please, please quit calling it free money. It's not free if you paid it in 1st. Fact it cost you to pay it in as you didn't have it over the years to invest and grow and the federal government doesn't pay you interest for holding it over the years. Better to call it "already earned" money. Thanks for the great channel.
After watching your SS videos and looking at my numbers, I have come to the conclusion to keep building my 401 and savings now so I do not have to collect early and work a side job at Walmart , Publix a food sampler ( and like another subscriber mentioned) becoming a Utube in my 60’s + years giving out incorrect information on SS for likes. I want to enjoy my retirement and not have to worry if I can’t work because of a medical condition. I’d rather have enough in my savings and retirement at 65-67, if I die before or when I start collecting, I’m dead who cares.
Having $1K extra per month is a huge difference unless you have a lot of other assets. Not to mention that it's 5 extra years you don't have to provide for yourself. Also, not to mention healthcare costs, which these videos ignore.
I’m 62 and getting my first SS deposit next Wednesday. It’s going straight to my high yield savings account. I’d rather have it in my bank account than the government’s.
Does your savings account pay 8% interest or more? If your benefit is going directly into your savings account, you obviously don't need that money. Why collect SS at age 62? Why accept the reduced payments? If you wait until age 67 to collect, the monthly amount you will receive is 42.86% more than the amount you would have received at age 62. That's no small percentage. You're a female and 62-year-old females, on average, will live to the age of 84. (You can verify this at any of the many Actuarial Life Tables online. In fact, there's one at the SS website. Us 62-year-old males aren't so lucky... we live, on the average, to the age 81.) The break-even age for filing at 62 vs 67 is exactly 78 years and 8 months. (This break-even age is the same for everyone. It's not dependent on your actual benefit amount. It's a simple formula.) Thus, if you are average, you can expect to live a full five years past the break-even age. If this happens, you will have left a lot of money on the table, by accepting those reduced checks.
@@SarasotaTim - Which is not too far from poverty. Heathcare, plus living expenses...$102K income for 3 years is McDonald's wages. In fact, in some cities, minimum wage is $20 per hours is $42K per year. No thanks! Getting less pay than a Mickey D's employee is not my goal. Especially just to get a few bread crumbs from SS. The amount you lose by claiming later is bread crumbs.
Where are most early social security recipients able to find part-time employment in that 5th year for $59,520 ? That particular maximum allowable earnings cap resembles a full time prison job. Also, the $22,320 earnings cap during the four years leading up to that would be the equivalent of a full time prison job for the majority of retirees subsidizing their retirement ( $12 per hour job x 36 hours per x 52 weeks per year = $22,464 )
For starters, there is no way you can retire if you have debt, at any age which includes a house pmt, car , consumer loans, large yearly medical expenses etc. I don't believe anyone can live off of ss exclusively unless they have zero housing expenses . Retiring at any age requires planning. Also you should have other streams of income like a 401k, Roth or something else. Most people have too much debt and are not willing to make some lifestyle changes prior to retiring.
@@alysonwallace6600 - To me, overall, it's better to pay off the mortgage in this scenario. But the world doesn't revolve around they way I think and many prefer to earn 10% in the market and have a 4.5% mortgage.
I enjoy your vids Tim, but you definitely need to drop that "Free Money" description of SS income. There is absolutely nothing free about it. It's money that most have worked hard for and have EARNED! Our government helps themselves to it and have mismanaged it the entire time. Do you realize that if we were to invest that money privately over the full term of our working years, that the average worker that retired at age 65 would have a minimum of 1.5 million dollars at retirement based on average historical returns. Our government has bent us over and totally screwed us by extorting money that we worked for. It is WRONG and always has been.
I left my job early. I never had a problem doing my job but when management wanted me to do my job AND a coworkers job, that’s when I knew it was time to leave. I was not going to stress myself out over work. It just ain’t worth it. Looking at my SS account it says I’ll receive (in today’s dollars) $2,051 a month. FYI; I did adjust the yearly future amount to zero to confirm. What I notice is the monthly amount increases every year 👍 (last year it was $1,900/month. I qualify for SS in 2025. I’m sure I’ll see a bump in benefits then, which will really make me feel good when I add that money to my monthly pension! I’ll be receiving more net pay monthly than if I was still working while being debt free! Crushing it!!!
Yes, SS benefits are recalculated every month leading up to your FRA, and in some cases beyond, but everyone gets a recalculation at FRA, regardless of when you started or did not start collecting.
im collecting my SS in 6 years at 62, and work part time to supplement. I would be bringing home about the same, as if I kept working FT without SS. I have no debt whatsoever, so no worries there.
It is my understanding that the differential in tax payment increases occur only after you hit those levels. For instance, you pay 22% on the money made after you paid at the 12% level for the first 45k.
Just had to look at my social security numbers and according to their info on me: Retire at 62, receive $2,359.00 a month, wait until 67, receive $3,353.00 a month. That's almost another $1000 more if I wait until FRA. At 70, $4,102.00 a month. Definitely not waiting until 70! Decisions, decisions, lol I'll be 62 this year.
Tim I just finished watching your video on retiring at 62 , you inspired me on retiring at 62 . i have worked at the beginning of 16 years and this month of January turn 62 and plan on starting a business . THANKS !
Whats FREE is .. SSI, supplemental security income, which is Welfare, people confuse it with social security because it is managed by the SS administration.
Most confusing video yet about S.S. in my opinion. What are your thoughts about taking S.S. early if you have a side hustle, 401k distribution and a Roth? I'll hang up and listen.😂
@@sheilacollins9434I retired and took a pension at 55. I spent the prior year planning for retirement which has been of great benefit. I will turn 65 this year and will sign up for Traditional Medicare, Plan N, and Part D. I am intentionally delaying SS for that larger payment likely at my FRA as my mother lived to 89 and my father is in his 90s. I plan to use my ROTH to offset any additional expenses saving the Traditional IRA for when RMDs are required.
Social security is not a one size fits all deal. If you have to work a side hustle w2 or 1099 you get to pay FICA taxes on that income also do math on provisional income you might be giving some of that sweet social security check back to the tax man also.
Retirement is an individual decision. Everyone is different. My Wife retired early but I make a good salary working from home. The Grand kids come over every weekend. Kind of a best of both worlds. We walk 5 miles per day and In the Summer, we swim in our pool at lunch time and I also get to hang out with my Dog and play frisbee four times per day in the yard.
I’m 58 self employed with a janitorial business. I plan on working until I’m 62 then having employees do the work until I’m 65 and then start drawing. I only work around 15 hours a week now but it’s still getting old. 😂
I hear ya brother. I'm 58.5 years old and am looking to not retire just yet, but change what I'm doing within the next year or so. I've been in my industry for over 30 years and am just tired. Tired of the day in day out aggravations not to mention dealing with traffic. I live in the Atlanta area so you know what I'm talking about. I have a nice wood working shop and am quite good. After following others and talking with those who do this very thing, I could end up doing okay with it, not to mention I LOVE working with wood. Think Etsy or Amazon Marketplace. I just don't have time to do it. Yes, I'm also planning on taking social security at 62. The one key though, like you said, little to no debt. I'm about there.
Tim, with all due respect- there is no such thing as free money with the government. To keep emphasizing the opposite in your videos is misinformation.
Last year I decided to go on SS at age 62 1/2. My SS payment was only $1284/mo. (It’s since gone up to $1324) But I was also driving Uber, my gross income was just under $80k, net income was just under $45k, so I’m thinking I should un-retire (I think I still have a couple months before it’s been a year), drive a couple more years and re-file for SS when I’m about 65-66? What do you think?
You will have to pay back the SS amount you have received to pause it and have it continue to grow. Also, there is a narrow time frame to do that. Contact the social security department.
If you go from a gross of 80k to net of 45k, you are just a slave working to pay taxes to the government. If you unretire, you'll need to pay back the monies received.
Trucker - I tip my hat to you because you are using your brain, rather than succumbing to the "collect at 62 bots". Even if you decide not to do it, I still tip my hat that you were smart enough to think about it.
I plan to retire at 62 this October 1st, God willing 🙏🏻 😁 Escape from the micromanaging, tedious, job I have (I’m a nurse and work for a health insurance company) . I will be moving to Italy, as I have dual citizenship 🇮🇹 The cost of living is so much lower there, it’s healthier and you can travel to other countries so easily. I will also have free healthcare 🙏🏻
Hey Tim! The c way the tax brackets work, you pay 10 percent on earned icome up to 11,600. Anything over that 11,601 to 47,150 you pay 12 percent. Then 47,151 to 100,525, you pay 22 percent. You dont pat 22 percent on the whole 60,000. I think you were alluding to that but wasn't too clear. Take care!
Exactly, ST doesn't seem to have a very good understanding as to why they refer to the tax brackets as marginal tax rates. That said, and on another note, Social Security is designed to pay you exactly the same total amount if you live to the average age. So in order to maximize your SS payout, you need to know when you are going to die. But I agree with ST, there are lifestyle considerations when deciding what age to begin collecting.
According to the SSA if I collect at 62 I’ll get $2597 and if I wait until 67 it’s $3784 or $4743at 70. I’m retiring in 4 months at 59(I have a big pension) and will be collecting at 62 because I do have diabetes and my time is going to be shorter and don’t want the government keeping my money.
My husband always told me that we should take SS benefits as soon as we were eligible because he didn’t want the government holding our money a minute longer than the law allowed. Unfortunately he died unexpectedly at age 61 and he never saw a cent. Needless to say I collected survivor’s benefits as soon as I was eligible, at age 60.
You make so much sense. What I would like to know is why we are not taught all of this stuff in high school so that we would be better able to make decisions about our lives as we age? What is the answer? I think it is not in the interest of the wealthiest people in this country who become rich off of the backs of poor and middle class people to teach them how to best understand and negotiate the system.
Tim for most people SS is not free they paid into it throughout their working earning career which is based on your best 35 years within that career. There is no such thing as free money as that paid SS is also taxed !
Lol Scott you might be new to the channel Sarasota Tim is full of sayings. It is a facetious remark. Of course I know and the rest of us know Social Security isn’t free. Maybe after you catch up on a few more videos, you’ll get my personality. It is just a saying. Welcome to the community.😎
This works for tim! it’s not for everybody, but if you hate your job and get up every morning, not liking life , retire at 62, because it will be for you ,you will be happy!
Tim, people need to understand that if they are not living below their means at 62 and still not at 67 to 70 the extra money for waiting isn't going to help much. I see your show as a lifestyle change and these people don't think you can't collect SS at 62 and save that side hustle money for later in life, they are programed to spend every cent they make.
We are collecting at 62 and try to have a minute to relax...Like our friend who worked all his life and retired at 62 walked in to the kitchen and told his wife his head hurt and fell to the floor dead at 63😢
Tim, If I put 20k in the bank this year and next year I draw out that same 20k, would that money be free....or would that 20k be my money? You keep refering to SS as free money. Help me understand.
I have no issues with a side gig because every plan should be flexible. But I’m curious what you’ll think in 5 or 10 years? I’ve seen some interviews where those who took it early wished they would have waited.
Hey Tim. I'm 58 and want to semi retire at 62. When I turn 59 1/2 I intend to pay off most of my cc debt by taking from my 401k. For 2023 I fell into The 12% tax bracket. The way I see it it's the only way I can semi retire at 62. House is paid off. Base on my health issues and father and uncles All passing in there late 60s I have to assume my life expectancy will be around the national life expectancy average for males. Do you think this is a good decision?
Tim has good advice and some people can take SS at 62 and make it . Time is the one thing you cant buy. A part time job and more freedom is in your control.
Some retirees want to work part time just for the socialization, or it gives them something to do if they're bored and didn't retire with millions, the extra money doesn't hurt either.
I’m curious, do you save/invest at this point in your life? and if so, what percentage of your income? I’m 50 so still have a bit of time before I can collect but thinking about it now. Want to be able to “Crush It” when my time comes!
Tim you are right no one is promised tomorrow but you are not answering my question which I have posted plenty of times ... How about if your ss is half of what you get what is a person supposed to do ???
Make sure before you retire that you are 100% debt free and you have a little bit of retirement savings. Going into retirement with debt or still paying rent is suicide. I know many that have retired and had to go back to work due to rent increases. They couldn't live off of social because their housing was more than their social security check was. Plan before you retire and then you should be fine. I won't get as much off of social as I make now, most of us won't. But you have to plan to cut your lifestyle down.
Tim, can you please do a show on people that take your advice and retire at 62, but move overseas to make money go further? Concrete example: friends that left America to retire in Thailand. Their rent went from $1,800 a month to $200 a month. It really seems like cost of monthly living is as important or more important than income. If you choose wisely in Thailand your budget is a third of what it would be in America. No side hustle required when your money goes that far. There have to be more people in our community of Tim's World that are entertaining such a move. Thanks for everything, brother.
folks, the key is, and Tim has already said it, this plan to take SS as early as you can (currently age 62) you NEED TO BE DEBT FREE!!!! If you have all of these payments you need to make each month, then you more than likely cannot retire at 62 and work a side job. Once you are debt free, and your only expenses are what you need to survive, then early retirement and taking the money early make sense. I agree with Tim (and I am only 54), its all about what your DEBT is.... If I have no debt, then 1200.00 to 1500.00 a month should be sustainable. :) but you will need to be frugal, and only truly purchase WHAT YOU NEED TO SURVIVE!!! It really is simple math...
At 62 I get $2100 monthly and if I wait till 67 it's $3000. I'm 58 and I sure don't want to work till 67. I do have 2 separate retirement accounts which I contribute to monthly. I'm a critical care RN but stopped patient care in 2015. I do clinical data abstraction at home for a great company. I'm about to drop to 30 hours per week. This will be my side hustle because I can still work 20 to 24 hours per week for this company. Lots to think about.
True esp if the fund is going to be depleted in 10 yrs or they extend the fra or ur only entitled to 3/4 of the prior number. Fact is. He's right, take it.
Stress reduction is EVERYTHING. If you truly love your job be thankful and never quit. Most jobs suck. Most corporations are awful. Most supervisors/bosses are assholes.Days off while healthy is PRICELESS.
I know one lady that is doing obamacare until she hits Medicare age. It can be a great way to take care of that gap until you get old enough to qualify for Medicare.
I turned 62 in December and just signed up for SS. I am a nurse and work 3rd shift and it is killing me, both physically and mentally. I am scared to death about quitting, but my husband still works and even if I don't work some side job, we still will be making close to 80,000 with no debt. I need reinsurance that I am doing the right thing.
I agree about retirement but what about the big one the one people are really staying at work for INSURANCE!!!!!! I've checked into it and it's expensive. Charlie
If your FRA is 66.5, you can retire early at 62 and apply 3 months prior to turning 62. You should definitely contact the local SSA or go online to their website to see the amounts you qualify for.
Hi Tim, I’m preparing for my retirement at 62 as it’s only a year and a half away. I have a kosher job at Zaxbys that I will be keeping when I retire. The reason being is I have great health insurance through them that I need to keep. I can’t wait to see what I will be doing working 30 hours a week instead of 90 in my retirement.
Tim, what did you for healthcare before Medicare? I believe that may be the question. I use the affordable care act, age 61 which doesn’t matter, only mentioned because I’m not close to Medicare eligibility. For a decent plan, similar to the plan I was paying for through work, we pay $200 per Month for a family plan. It’s based on projected income and is squared during tax filing for that year’s income if you earn more than projected by collecting 401k for example. Go on line for an estimate to get a better understanding on much it will cost. Work with a reputable financial advisor who will review your full portfolio, income, savings , debt, investments, expenditures etc and then offer guidance on retirement timing and collecting SSA.
Fact is...that Bum, once you add foodstamps, medicaid and HUD is better off than a Lower paid social security recipient that worked their 35 years at a minimum wage job !
I would say that ideally it would be great to have multiple sources of income i.e. from tax-deferred retirement accounts, after-tax accounts like Roth IRAs or Roth 401ks, taxable brokerage accounts, rental property income, etc. This could also include a side hustle as Tim includes. If you do have other sources to draw income from and Social Security isn't necessary, I would prefer to take Social Security early at 62 and invest those funds to get a higher return than by waiting years to get a higher Social Security check. Tim is right in that tomorrow is never guaranteed. However, if you do not need the income, why not take it early and invest it for a higher return? You could end up creating another asset that in the future could provide another source of income if needed.
Dexter Scott King, the youngest son of civil rights icon Martin Luther King Jr., died Monday from prostate cancer, according to The King Center. He was much too young. He was 62 years old.
This is fine until your body is worn out and you have to live on your early SSI. My best friend is 70 and can’t quit working her part time job because she took her SSI at age 62. I own my own business 34 years and still working at age 72. I delayed my SSI until age 70 so it would be an amount I could actually live on once I can’t (or choose not to) work. Not everyone has a “prison job”. Sounds like your made some bad work choices.
![ประสบการณ์ จ้าง Developer ที่ผมจะไม่มีวันลืม [ภาค2]](http://i.ytimg.com/vi/pZbsSDRrmXA/mqdefault.jpg)
It's like watching Forrest Gump doing math. LOL
Yep, Forrest Gump turned out to be a millionaire!!!
@@BenTrue75 Just the opposite here!!!!!
“Being around other people that cause you diseases?” One of the silliest things I have ever heard. My dream retirement… handing out samples of sausage and then doing my laundry at the laundromat and getting free gift cards. Wow
@@HomesteadingRetirementYes, it's just ideas from another brain.👍
But you get to go home to your trailer when your done working every day. Livin' the dream! People taking retirement advice from this guy deserve what they get. A lifetime of camping in a metal box in a Walmart parking lot.
For me I waited till FRA and the difference was $700 more then taking it at 62. I waited because my thinking is , if I die I won’t need it but if I live I’ll need every dime and $700 to me was a lot to give up. That’s $700 a Month not a year for the rest of my life. My dad passed at 94 and mom is soon to turn 94 still going..Thats my side hustle
Yes, my father is 96 and my mother passed away at 93. I just don’t understand why everyone thinks there going to die early. Some certainly will but many others will will long into their 80’s and 90’s.
@@tombkk1322 agreed. My dad passed at 94 and mom is 93 soon to be 94 still going
Deb - You are smart. Too many young kids are suckered into worrying about if they die young and get cheated out of collecting SS earlier. Bad mentality. They are living their lives in fear of dying. I enjoy working in my 60s. If I die tomorrow, no regrets. No complaints. It was fun ride.
I would never wait to 70 to collect, it's too much money left on the table! It's a scam to wait that old!
You say " quit your job @ 62 and collect SS then "Get a side hustle " It doesn't make sense to me. Why not just plan to retire when you've saved enough. Then if you need the SS income to live on just start collecting it. I'm 68 and still work part time ( my side hustle) and I have enough income and savings to live comfortably without SS . If I start collecting Social security today my annual income will be high enough to require me to pay the higher medicare premium (IRMAA). So I'll wait until I'm 70 to collect my SS benefit. If I had the SS income from 62 to 70 it would absolutely have made no difference in my freedom to do what I want. Not everyone is depending on that money at 62.
What I decided is to contribute more into my 401 & savings. I do not want to have a side hustle or know I will be okay medically to work one. My mom lived until 90 as well as most family members. I could die before I collect at 67 or soon after , but I sure don’t care, I’ll be dead.
@@pppaaattt8401 SHe night be miserable on that job.
I'm 61, working from my 3,200sqft house 5-6 hours a day making $100,000/year. Go on runs when I want, watch TH-cam videos, ride my Peloton, fish in my pond behind my house, sit out by the pool with a laptop. As long as the work gets done, it's fine. Definitely not prison. I think if you didn't plan properly, you are stuck taking SS when have to and living in a trailer at Walmart. I could not even take SS and be fine. My father taught me to invest in myself first and then pay the bills. He also said seek professionals for advice. Tim is not a professional. Hell, I'm more retired than he is.
@@MikeRakowski Kinda sad to watch these videos and read the comments. Do people really think living in a travel trailer, staying in Walmart parking lots is 'crushing 'it? If so, that's more sad than actually living that way.
Fish in your pond stop watching Tim. Go watch lifestyles of rich & famous!!!
@@BenTrue75 Thanks for the reply 9 months later!!! I did stop watching his garbage. Rather than watch a poor retiree in a tin box in parking lots, I went to Australia, Chicago, San Francisco, Dallas and other local beach trips to see the world. Keep getting your advice from the poor and uninformed so I there is plenty of room on my flights to Boston and New York coming up!
Its Not Free. Its your blood, sweat, and tears for Years and years and your Employer also paid into it to match what you Paid in. Its Not Free
I think your over thinking what he says when he says “free money”. He just means that it’s $ that you haven’t seen. It’s invisible. Of course he knows he paid it! He isn’t stupid.
I suggest you do your research before you talk about Social Security and taxes. It's better to provide no information, than share inaccurate info.
Make a video. 👍😎
@@SarasotaTim He made a comment.
Your math is horrible . You missed the whole point . You went back to work !! Retire means stop working . I think you have semi-retired confused with retired .
In a Walmart parking lot instead of paying RV lot rent at Florida winter rates $700 a month . I know , I live here too . In Europe your known as Gypsies not retired.
Most people would not be able to retire and be HAPPY, doing the camper and Walmart/ Cracker Barrel lifestyle. The video should be "This lifestyle and income amount is working for me"! Not everyone is working at a "Prison job". Its nice having a job where you have a purpose. For many people, once retired you sometimes loose that purpose and its hard to deal with. Bottom line, we all have reasons why we are doing what we are doing.@@kurtbagin7356
It's not a binary choice between do nothing all day and work for someone at a desk for 8 hours a day. Being retired means that you control your time and decide how to use it. If one chooses to pursue activities to stay engaged and earn a little money in the process, they can still be retired. It's all about being in control of your time, which is the most finite resource any of us has.
@@KayFabe87 being a member of a trade Union gave me that freedom all my life . We always had a contract that said if I gave my employer 3 days notice that I needed time off he had to allow it up to 3 weeks . Now we never got paid for days off but when you make a solid living , that doesn’t matter . I always took 6-8 weeks off a year . So I guess I’ve been retired my whole life ? Why quit a job that pays $45 an hour plus $22 an hour in benefits just to live like a gypsy ?
@@KayFabe87 But he is not choosing and that is the difference. He has to so he can make ends meet... Or else he wouldn't be using a Walmart parking lot for home.
I just looked and according to SSA my FRA is 3622.00. 1200.00 more a month than at age 62. And with my wife getting half it really pays to wait.
It does pay to wait. If you wait until age 67 to collect, the monthly amount you will receive is 42.86% more than the amount you would have received at age 62.
Tim, your numbers assume a couple of things. First you assume you will be able to make that $22K a year from 62 to 66 and then you assume you will be able to make $60K from age 66 to 67. As far as the lower amount goes it depends on your job skills and how much you are willing to work. Lets say that you can find a part time job that pays $20/hr. At that pay $22K is 1,100 hours per year of more than half time. Even if you find a $30/hr part time gig you have to work 733 hours a year. In either case that is going to significantly impact what you can do during the year. Either you work full time for 4-7 months or you work part time all year. In either case you are tied down by work. Then there is making $60K from 66 to 67. Unless you have skills that are in demand, it will be hard to find a job that pays that much since you will have effectively been out of the full time work force for four years. You will also be competing with younger people with the same skills who will be at the job much longer and will thus be more attractive to the employer who will have to train the new hire.
Then there is the elephant in the room. How do you live when you can no longer do that side hustle and have to get by on only your reduced social security?
Also I suggest that you take a look at the Social Security Actuarial Life Table (www.ssa.gov/oact/STATS/table4c6.html) when it comes to life expectancy. You will find that if you are 62 today that your life expectancy is 81. Similarly life expectancy at 67 and 70 are 82.6 and 83.6, respectively. My wife just turned 79 and her statistical life expectancy is now 88.7. Note that those are population statistics and mean little for an individual. You have to take your health and genetics into consideration when looking at life expectancy.
Finally, you need to learn the concept of marginal tax brackets AND you need to learn how Social Security Benefits are taxed, which they definitely are. I will do a couple of simple tax calculations for you. First I will calculate the federal income tax for the single person who takes Social Security at 62 and gets $1,700/mo in Social Security and works a part time gig to earn 22K per year. That person's taxable income is $22,000 earned income + $3,600 taxable Social Security = $25,600 taxable income. This persons standard deduction is $14,600, so the person owes tax on $11,000. $11,000 in all in the 10% marginal bracket, so the tax is $1,100. When that person turn 65 they get an additional $1,950 standard deduction so their taxes decrease for that year to $905. If that person then makes $60K from age 66 to 67 their income tax jumps up to $8,427 because 85% of their Social Security is taxable due to their income. Now lets consider the person that works from age 62 to 67 and makes $60,000 a year. That person's annual tax will be $5,216 until they hit 65 then it will drop to $4,982. That person's maximum marginal rate is 12%. An individual 65 or older can make up $63,700 before any of their income goes into the 22% tax bracket and only the amount over $63,700 is taxed at 22%. Total after tax income from 62 to 67) for the person in your scenario who take Social Security at 62 is $237,368 and the person who works to 67 making $60,000 has total after tax income of $334,388. Also, it is very likely that the five years from 62 to 67 will replace five years of lower income in the worker's Social Security calculation of their full retirement age benefit, resulting in a higher full retirement age benefit that what the age 62 retiree's benefit was based on. Final I would suggest that working 1,466 hours a year in a $15/hr Walmart job won't be the worker's paradise that you envisage.
@@MikeRakowski I agree. We will see how long my comment lasts.
@todddunn945 Todd, hopefully some of Timmy’s subscribers will read your comment and see that what Tim is putting out is incorrect. Hopefully they will call SS or a financial advisor before they take his advice.
Todd - That's one heck of a novel you just wrote...lol. Seriously though, you thought this out. I don't like the "side hustle" route, unless you just want a few extra bucks or want to keep active. I can retire, but I dont want to. Too many benefits and perks to abandon work right now. Tim appeals to those with itchy ears.
@@JohnBowl14690 I am a retired professor, you have to expect it. I ran a small business for a while to keep me busy, but quite that when I was 68. Now I have a TH-cam channel. It brings in some money, but I just leave it in the bank since it isn't enough to bother with investing and I don't need it. However, TH-cam gives me something to do, such as filing more complicated taxes.
I get angry every time I hear FREE MONEY!...Its NOT FREE! Its not a handout. Its $ we paid in every paycheck..as well as $ our employers paid in as well...were just getting tgat $ back.
It's a figure of speech, free money!!Because people don't get it, he's trying to explain like your children! So don't let your feelings get hurt!
He says its Money that you has been payed in
Hi Tim love your channel but I kind of have to disagree when you say social security is free money this is money that we worked hard for you and me and paid into it for many years and it's also not in the entitlement it's something that we've earned the right for thank you
Exactly
Yep! I been working since I was 14 and 61 now, I paid in this whole time, I thought if I got early retirement I wasn’t able to work or get kicked off my early retirement, am I wrong in thinking this?
I think he means passive money not free money, meaning that during the month you receive it you don’t have to work or do anything for it since we worked for it years ago.
Tim said free money...money that he paid in you must not have heard that part.
I think he means free money that you are receiving now not having to work for it now as like you were when you were contributing.
You dont understand how tax brackets work. You do not pay a particular percentage on your entire income. In your example you would only pay the 22% on the $44k +
Side hustle is not retirement
It's not a binary choice between do nothing all day and work for someone at a desk for 8 hours a day. Being retired means that you control your time and decide how to use it. If one chooses to pursue activities to stay engaged and earn a little money in the process, they can still be retired. It's all about being in control of your time, which is the most finite resource any of us has.
I consider side hustles as semi-retired if they are working less than 24 hours per week. My definition.
@@KayFabe87 Having to do something and deciding to do something are 2 different things. If you have to have a side hustle to live, you definitely are not retired and not CHOOSING to spend you time that way, you HAVE too.
Who the hell wants to keep working here? I stopped working at 60. Will never go back.
Tim, no disrespect, but please stop implying to people that taking SS at 62 is the only way to go. It depends on everyone’s individual financial situation. There are many reasons someone should wait, not just that “one reason” you speak of.
No disrespect to you, but I think you’re giving your opinion as well. I’ll upload videos, saying what I believe, that is my right, you are welcome to create your own TH-cam channel and make your own videos. Where people should have concern regarding what people are saying on TV and social media would be more towards the media that’s destroying lives and deviding our country. 😎Focus on the bigger picture rather than on Sarasota Tim, proving that you get more money by collecting your Social Security earlier than later. 😎
I want my money at 62. I also want to stay busy and decide what I'd like to do as a side hustle. It gives us freedom and a guaranteed amount of monthly income.
This person needs to watch the full video!
I worked with a super guy and bumped into him on a thursday....he was 61....we chatted about retiring and he daid he was done at 62 and was gonna hang it up. He died the following monday morning in the shower getting ready for work. I retired at 62. Im lovin my good health and life. Best desicion i ever made.
I retired at 59 and I don't regret that at all. My plan is to wait until I'm 70 to file for Social Security. I don't have a problem with collecting late and leaving money on the table if I happen to die early. That doesn't worry me at all. I worry more about outliving my savings, since I expect to live until I'm in my mid 90s.
Our TH-cam channel has less than 5k subscribers- 7% of Tim’s. We make around $10k/year from it alone with no income from Buy Me a Coffee, Patreon, selling products we got free in exchange for a review, gift cards from subscribers, or Amazon affiliate links. We haven’t gotten that far yet! I’m thinking Tim has reached or surpassed max earnings allowable on SS and has / is going to see his check reduced.
@@threeftr3349 Aww! Thank you!
Tim, I wonder what happens to people who take the reduced amount at 62. Let's say you get $1,700 a month reduced amount + COLA for 8 years, but what if you hit 70 years old and your health deteriorates to the point you are unable to do a "side hustle", will you be able to live on that low of an amount for the rest of your life? Or will you have to go for food stamps and really struggle? The additional $500 difference if you waited would mean a whole lot at age 70! 😮 That is a scary scenario.
Health can deteriorate at any age and is always a scary thought
I was just thinking the exact same thing. This is a great question. I hope he answers it. I love Tim's channel and this is a real question I have. I am not trying to be rude or anything. I have the same question. I wanted to send him a personal email, but I was not able to prove I was not a robot and was not able to obtain his email.
Totally agree
If you look at his past video, statistic average lifespan for male & female in USA. Don't pass up SS leaving it on the table.
@@dennislaplant95Some don't make it to 70, don't leave that SS money on the table.
Tim you should always encourage people to save money for retirement everyone needs a financial parachute !
According to my last statement from Dec 2023, there is an $1125 difference between 62 and 67 so it makes sense to hold off if I can. Always considered what you'll net not what you gross.
Hi Tim. Your analysis of Social Security compares it to a banking product. The reality is that Social Security is an insurance product. Insurance against living too long! By collecting early, you will pay the price if you live a long life. When you reach your late 80’s, expenses will have gone up and you won’t be able to work a side gig! Interested in your thoughts!
Dont forget about Medicare. You cant buy it until 65. So now add in the cost of insurance that will probably suck.
Exactly. The amount you lose by claiming early is quite a bit.
The only drawback to what you say, is if your health gets bad at 67, and you can't work a side hustle. You are debt free, but stuck with a small check, for the rest of your life.
I like Tim but he never talks about that. Life has a way of testing us all. Sometimes good to plan for the worst and hope for the best.
Another angle on this is if your health gets bad you may spend less as you won’t be getting out to do much. You will buy less to no clothes, use less of many things in life if you are homebound and sick. Sad to think about but a reality.
@@LifebyLisa4444 That’s a good point.
@@LifebyLisa4444 But you will spend more on medications and medical bills so it won't matter if you stay home. Medical cost are higher than anything you mentioned by far!!
Yeah but then you gotta get a pt job or side hustle , or you can wait 5 yrs and not work at all
Wait till your too old to travel, nope get SS early!
Tim, its not free money, dude they took it from you all your working life. If you could have put that money in an investment mix over your working career you would have made 4x or 5x that amount. You would be getting 10K a month.
As far as the SSA caps on your wages.
You pay 6.2% & Your Employer pays 6.2% into SSA
Max pay in for an individual in 2024: $10,453.20 The amount is increased a few hundred dollars every year. It used to be as low at $5,400.00
Your salary in 2024 would need to be $174,000 to reach the max SSA pay in cap.
There are ONLY 7 tax brackets in the USA: 10%, 12%, 22%, 24%, 32%, 35% and 37%. There is NO 4% tax bracket. NO MORE MISINFORMATION, OK? Why not host a financial planner or a CPA who actually knows what they're talking about!?!?!?!?
Correct but depending on your SS and income from a IRA or 401K etc your tax rate not brackets can be all over the place.
@@Satjr35031 Your tax "rates" lie between the 7 brackets listed above. I see my original comment was deleted. Cheers!
@@eml-0404 Your tax could be maybe 4% or 6% I didn’t say tax bracket I said your tax rate
You are obviously not familiar with the concept of 'effective tax rate'. All of your income is not taxed at a single rate if your income straddles multiple thresholds. For example: If your taxable income was $40,000 in 2023, you get taxed 10% on the first $10,275 and 12% on the remaining $29,725. Your total tax due is $4,594.50 for an effective tax rate of 11.5% Factor in deductions and credits and that rate can go even lower.
www.irs.gov/filing/federal-income-tax-rates-and-brackets
You are obviously not familiar with the concept of 'effective tax rate'. All of your income is not taxed at a single rate if your income straddles multiple thresholds. For example: If your taxable income was $40,000 in 2023, you get taxed 10% on the first $10,275 and 12% on the remaining $29,725. Your total tax due is $4,594.50 for an effective tax rate of 11.5% . When you factor in credits and deductions, the tax rate for 50% of US taxpayers falls to 0% They actually receive more from a tax “refund” than they actually paid in federal income taxes.
www.irs.gov/filing/federal-income-tax-rates-and-brackets
I retired early at 56 and love your channel, but please, please, please quit calling it free money. It's not free if you paid it in 1st. Fact it cost you to pay it in as you didn't have it over the years to invest and grow and the federal government doesn't pay you interest for holding it over the years. Better to call it "already earned" money. Thanks for the great channel.
After watching your SS videos and looking at my numbers, I have come to the conclusion to keep building my 401 and savings now so I do not have to collect early and work a side job at Walmart , Publix a food sampler ( and like another subscriber mentioned) becoming a Utube in my 60’s + years giving out incorrect information on SS for likes. I want to enjoy my retirement and not have to worry if I can’t work because of a medical condition. I’d rather have enough in my savings and retirement at 65-67, if I die before or when I start collecting, I’m dead who cares.
If I choose at 62 it’s $2288. I wait to 67 it’s $3324.
That $1,100 a month plus-up is worth waiting 5 yrs (at least to me).
@@bhinbayoucity5691or at least till 65
My numbers are similar- 2400 vs 3500. I’m waiting provided health stays decent. Not free money! Worked my tokus off.
I would definitely wait. Taking SS at age 62 is not for everyone!
Having $1K extra per month is a huge difference unless you have a lot of other assets. Not to mention that it's 5 extra years you don't have to provide for yourself. Also, not to mention healthcare costs, which these videos ignore.
I’m 62 and getting my first SS deposit next Wednesday. It’s going straight to my high yield savings account. I’d rather have it in my bank account than the government’s.
@@tomspallone1868 I don’t need it now. It will be there compounding interest if and when I do need it.
@@JohnBowl14690 you’re pathetic!
Does your savings account pay 8% interest or more?
If your benefit is going directly into your savings account, you obviously don't need that money. Why collect SS at age 62? Why accept the reduced payments? If you wait until age 67 to collect, the monthly amount you will receive is 42.86% more than the amount you would have received at age 62. That's no small percentage.
You're a female and 62-year-old females, on average, will live to the age of 84. (You can verify this at any of the many Actuarial Life Tables online. In fact, there's one at the SS website. Us 62-year-old males aren't so lucky... we live, on the average, to the age 81.)
The break-even age for filing at 62 vs 67 is exactly 78 years and 8 months. (This break-even age is the same for everyone. It's not dependent on your actual benefit amount. It's a simple formula.) Thus, if you are average, you can expect to live a full five years past the break-even age. If this happens, you will have left a lot of money on the table, by accepting those reduced checks.
Hi Tim, What about the cost of health insurance coverage until Medicare kicks in at 65?
All you get is $102,000 in Social Security checks. 😎
@@SarasotaTim - Which is not too far from poverty. Heathcare, plus living expenses...$102K income for 3 years is McDonald's wages. In fact, in some cities, minimum wage is $20 per hours is $42K per year. No thanks! Getting less pay than a Mickey D's employee is not my goal. Especially just to get a few bread crumbs from SS. The amount you lose by claiming later is bread crumbs.
Where are most early social security recipients able to find part-time employment in that 5th year for $59,520 ? That particular maximum allowable earnings cap resembles a full time prison job. Also, the $22,320 earnings cap during the four years leading up to that would be the equivalent of a full time prison job for the majority of retirees subsidizing their retirement ( $12 per hour job x 36 hours per x 52 weeks per year = $22,464 )
You have to subtract what ss gives you for the Year from the 59,520.....what's left you can make without paying taxes......
That's argument as well. Even at the $15 an hour at WalMart is still over 28 hours a week for 52 weeks. Where's the freedom???
For starters, there is no way you can retire if you have debt, at any age which includes a house pmt, car , consumer loans, large yearly medical expenses etc. I don't believe anyone can live off of ss exclusively unless they have zero housing expenses . Retiring at any age requires planning. Also you should have other streams of income like a 401k, Roth or something else. Most people have too much debt and are not willing to make some lifestyle changes prior to retiring.
You can have debt, but not NET DEBT. If you have $50K mortgage, but $500K in the bank, you're fine.
@@JohnBowl14690 Genuinely curious, what is the long term financial advantage of having a mortgage if you have that much money in assets?
@@alysonwallace6600 - To me, overall, it's better to pay off the mortgage in this scenario. But the world doesn't revolve around they way I think and many prefer to earn 10% in the market and have a 4.5% mortgage.
I enjoy your vids Tim, but you definitely need to drop that "Free Money" description of SS income. There is absolutely nothing free about it. It's money that most have worked hard for and have EARNED! Our government helps themselves to it and have mismanaged it the entire time. Do you realize that if we were to invest that money privately over the full term of our working years, that the average worker that retired at age 65 would have a minimum of 1.5 million dollars at retirement based on average historical returns. Our government has bent us over and totally screwed us by extorting money that we worked for. It is WRONG and always has been.
I left my job early. I never had a problem doing my job but when management wanted me to do my job AND a coworkers job, that’s when I knew it was time to leave. I was not going to stress myself out over work. It just ain’t worth it.
Looking at my SS account it says I’ll receive (in today’s dollars) $2,051 a month. FYI; I did adjust the yearly future amount to zero to confirm. What I notice is the monthly amount increases every year 👍 (last year it was $1,900/month.
I qualify for SS in 2025. I’m sure I’ll see a bump in benefits then, which will really make me feel good when I add that money to my monthly pension! I’ll be receiving more net pay monthly than if I was still working while being debt free! Crushing it!!!
Yes, SS benefits are recalculated every month leading up to your FRA, and in some cases beyond, but everyone gets a recalculation at FRA, regardless of when you started or did not start collecting.
Grandma always removed the gizzards when making turkey.😊
im collecting my SS in 6 years at 62, and work part time to supplement. I would be bringing home about the same, as if I kept working FT without SS. I have no debt whatsoever, so no worries there.
The warden is waiting for you. 😂😂😂
It is my understanding that the differential in tax payment increases occur only after you hit those levels. For instance, you pay 22% on the money made after you paid at the 12% level for the first 45k.
Just had to look at my social security numbers and according to their info on me: Retire at 62, receive $2,359.00 a month, wait until 67, receive $3,353.00 a month. That's almost another $1000 more if I wait until FRA. At 70, $4,102.00 a month. Definitely not waiting until 70! Decisions, decisions, lol I'll be 62 this year.
Wow, those are very big increases for waiting! You’ve got some tough decisions to make! Good luck!
That’s based on what you are making now and till FRA
Yep, and I'll be working until FRA, so it'll be higher.@@Satjr35031
Remember...you'll be paying for that extra $$ (taxes).
@@ACooperNorthwoodsWriter There is no Federal tax if that’s your only income. Regardless of how much you receive.
Tim I just finished watching your video on retiring at 62 , you inspired me on retiring at 62 . i have worked at the beginning of 16 years and this month of January turn 62 and plan on starting a business . THANKS !
Most American won’t make it to 75, diabetics, high blood, alcohol, drugs , overweight, taxes and politics. Good luck for those that wait.
.....and taking the medical intervention.
Whats FREE is .. SSI, supplemental security income, which is Welfare, people confuse it with social security because it is managed by the SS administration.
Most confusing video yet about S.S. in my opinion. What are your thoughts about taking S.S. early if you have a side hustle, 401k distribution and a Roth? I'll hang up and listen.😂
I appreciate that advice.
@@sheilacollins9434I retired and took a pension at 55. I spent the prior year planning for retirement which has been of great benefit. I will turn 65 this year and will sign up for Traditional Medicare, Plan N, and Part D. I am intentionally delaying SS for that larger payment likely at my FRA as my mother lived to 89 and my father is in his 90s. I plan to use my ROTH to offset any additional expenses saving the Traditional IRA for when RMDs are required.
@@sheilacollins9434 Smart. Did you know that after 2025 the taxes on conversions to Roth from pre-tax accounts will go up?
@@sheilacollins9434 No one knows for sure. If democrats stay in power, highly unlikely. Do you want to wait until 2026 and find out?
Social security is not a one size fits all deal. If you have to work a side hustle w2 or 1099 you get to pay FICA taxes on that income also do math on provisional income you might be giving some of that sweet social security check back to the tax man also.
Retirement is an individual decision. Everyone is different. My Wife retired early but I make a good salary working from home. The Grand kids come over every weekend. Kind of a best of both worlds. We walk 5 miles per day and In the Summer, we swim in our pool at lunch time and I also get to hang out with my Dog and play frisbee four times per day in the yard.
I’m 58 self employed with a janitorial business. I plan on working until I’m 62 then having employees do the work until I’m 65 and then start drawing. I only work around 15 hours a week now but it’s still getting old. 😂
I hear ya brother. I'm 58.5 years old and am looking to not retire just yet, but change what I'm doing within the next year or so. I've been in my industry for over 30 years and am just tired. Tired of the day in day out aggravations not to mention dealing with traffic. I live in the Atlanta area so you know what I'm talking about. I have a nice wood working shop and am quite good. After following others and talking with those who do this very thing, I could end up doing okay with it, not to mention I LOVE working with wood. Think Etsy or Amazon Marketplace. I just don't have time to do it. Yes, I'm also planning on taking social security at 62. The one key though, like you said, little to no debt. I'm about there.
Tim, with all due respect- there is no such thing as free money with the government. To keep emphasizing the opposite in your videos is misinformation.
Do you need an explanation for the Social Security benefits! Free money is figure of speech!!!
@@BenTrue75Awe, thanks for the comment. Have a great day! 😉
Last year I decided to go on SS at age 62 1/2. My SS payment was only $1284/mo. (It’s since gone up to $1324) But I was also driving Uber, my gross income was just under $80k, net income was just under $45k, so I’m thinking I should un-retire (I think I still have a couple months before it’s been a year), drive a couple more years and re-file for SS when I’m about 65-66? What do you think?
You will have to pay back the SS amount you have received to pause it and have it continue to grow. Also, there is a narrow time frame to do that. Contact the social security department.
See how much it changes if you continue working and draw later. All the best.
If you do ...I believe they want all the money back they have already given you 😮....that's what I was told I'm in Florida
If you go from a gross of 80k to net of 45k, you are just a slave working to pay taxes to the government. If you unretire, you'll need to pay back the monies received.
Trucker - I tip my hat to you because you are using your brain, rather than succumbing to the "collect at 62 bots". Even if you decide not to do it, I still tip my hat that you were smart enough to think about it.
Collect at 62 BANK IT! Keep working if you want to, your SS will go up wHEN YOU DO RETIRE. Have a retirement FUND.
I plan to retire at 62 this October 1st, God willing 🙏🏻 😁 Escape from the micromanaging, tedious, job I have (I’m a nurse and work for a health insurance company) . I will be moving to Italy, as I have dual citizenship 🇮🇹 The cost of living is so much lower there, it’s healthier and you can travel to other countries so easily. I will also have free healthcare 🙏🏻
I took it at 62 out of necessity. Everyone has their own reasons. But, it was there & I took it.
I respect that. Good luck in the future.
Hey Tim! The c way the tax brackets work, you pay 10 percent on earned icome up to 11,600. Anything over that 11,601 to 47,150 you pay 12 percent. Then 47,151 to 100,525, you pay 22 percent. You dont pat 22 percent on the whole 60,000. I think you were alluding to that but wasn't too clear. Take care!
Exactly, ST doesn't seem to have a very good understanding as to why they refer to the tax brackets as marginal tax rates. That said, and on another note, Social Security is designed to pay you exactly the same total amount if you live to the average age. So in order to maximize your SS payout, you need to know when you are going to die. But I agree with ST, there are lifestyle considerations when deciding what age to begin collecting.
@jimmywalters3071 I took that unfortunately directly from irs.gov. after you standard deduction first 11, 600 is taxed at 10 percenr.
According to the SSA if I collect at 62 I’ll get $2597 and if I wait until 67 it’s $3784 or $4743at 70. I’m retiring in 4 months at 59(I have a big pension) and will be collecting at 62 because I do have diabetes and my time is going to be shorter and don’t want the government keeping my money.
My husband always told me that we should take SS benefits as soon as we were eligible because he didn’t want the government holding our money a minute longer than the law allowed. Unfortunately he died unexpectedly at age 61 and he never saw a cent. Needless to say I collected survivor’s benefits as soon as I was eligible, at age 60.
❤so 😢very sorry for your loss
@@barbraprosper9065 Thank you 💝
Do you get it as soon as you turn 60? I ask because I want to do that too
@@kathy-t5q SS Survivor’s benefits start at age 60. Regular SS is at age 62.
So sorry for you loss. That is so sad for him. My grandfather died about the same age and never got to retire.
You make so much sense. What I would like to know is why we are not taught all of this stuff in high school so that we would be better able to make decisions about our lives as we age? What is the answer? I think it is not in the interest of the wealthiest people in this country who become rich off of the backs of poor and middle class people to teach them how to best understand and negotiate the system.
Tim for most people SS is not free they paid into it throughout their working earning career which is based on your best 35 years within that career. There is no such thing as free money as that paid SS is also taxed !
Lol Scott you might be new to the channel Sarasota Tim is full of sayings. It is a facetious remark. Of course I know and the rest of us know Social Security isn’t free. Maybe after you catch up on a few more videos, you’ll get my personality. It is just a saying. Welcome to the community.😎
This works for tim! it’s not for everybody, but if you hate your job and get up every morning, not liking life , retire at 62, because it will be for you ,you will be happy!
This is like a bad comedy routine! Yikes!
Tim, people need to understand that if they are not living below their means at 62 and still not at 67 to 70 the extra money for waiting isn't going to help much. I see your show as a lifestyle change and these people don't think you can't collect SS at 62 and save that side hustle money for later in life, they are programed to spend every cent they make.
Exactly! I can easily live off of what Social Security pays Tim, no issue. He's banking up the cash while he can. Smart.
My wife is younger than me so really no reason to retire yet. What am I gonna do while she is working?
We are collecting at 62 and try to have a minute to relax...Like our friend who worked all his life and retired at 62 walked in to the kitchen and told his wife his head hurt and fell to the floor dead at 63😢
Tim, If I put 20k in the bank this year and next year I draw out that same 20k, would that money be free....or would that 20k be my money? You keep refering to SS as free money. Help me understand.
In June I will be 65 I've decided to crush it after 47 years. My SS= 3100 $ per month. Crusher time. Thanks for the videos Tim.
I have no issues with a side gig because every plan should be flexible. But I’m curious what you’ll think in 5 or 10 years? I’ve seen some interviews where those who took it early wished they would have waited.
Mine will be around $3,520 a month IF I were to wait til 70 to collect.
That's about the same for me!!
Tim, really? Walmarts your favorite place? I dont shop there anymore...Ive given up on em.
Hey Tim. I'm 58 and want to semi retire at 62. When I turn 59 1/2 I intend to pay off most of my cc debt by taking from my 401k. For 2023 I fell into The 12% tax bracket. The way I see it it's the only way I can semi retire at 62. House is paid off. Base on my health issues and father and uncles All passing in there late 60s I have to assume my life expectancy will be around the national life expectancy average for males. Do you think this is a good decision?
Consult a financial expert. Doubt they tell you to take money from your 401k.
I think he lost his mind
Tim has good advice and some people can take SS at 62 and make it . Time is the one thing you cant buy. A part time job and more freedom is in your control.
Some retirees want to work part time just for the socialization, or it gives them something to do if they're bored and didn't retire with millions, the extra money doesn't hurt either.
You lost me 😂 ….couldn’t resist
I’m curious, do you save/invest at this point in your life? and if so, what percentage of your income? I’m 50 so still have a bit of time before I can collect but thinking about it now. Want to be able to “Crush It” when my time comes!
I would put as much as you possibly can back. I would do a strict budget and try to stick to it until you're ready to retire.
Thanks for reminding people to take their social security early as long as debt free and work part time.😊
Meanwhile, I'm over here working and planning without social security cause I have no idea if it'll be around by the time I am able to retire.
Tim you are right no one is promised tomorrow but you are not answering my question which I have posted plenty of times ... How about if your ss is half of what you get what is a person supposed to do ???
You probably right .Thanks for the reply.
Make sure before you retire that you are 100% debt free and you have a little bit of retirement savings. Going into retirement with debt or still paying rent is suicide. I know many that have retired and had to go back to work due to rent increases. They couldn't live off of social because their housing was more than their social security check was. Plan before you retire and then you should be fine. I won't get as much off of social as I make now, most of us won't. But you have to plan to cut your lifestyle down.
Tim, can you please do a show on people that take your advice and retire at 62, but move overseas to make money go further? Concrete example: friends that left America to retire in Thailand. Their rent went from $1,800 a month to $200 a month. It really seems like cost of monthly living is as important or more important than income. If you choose wisely in Thailand your budget is a third of what it would be in America. No side hustle required when your money goes that far. There have to be more people in our community of Tim's World that are entertaining such a move. Thanks for everything, brother.
folks, the key is, and Tim has already said it, this plan to take SS as early as you can (currently age 62) you NEED TO BE DEBT FREE!!!! If you have all of these payments you need to make each month, then you more than likely cannot retire at 62 and work a side job.
Once you are debt free, and your only expenses are what you need to survive, then early retirement and taking the money early make sense.
I agree with Tim (and I am only 54), its all about what your DEBT is.... If I have no debt, then 1200.00 to 1500.00 a month should be sustainable. :) but you will need to be frugal, and only truly purchase WHAT YOU NEED TO SURVIVE!!! It really is simple math...
So don't do what he is doing, plan better earlier in life so you are debt free? Right?!?!
At 62 I get $2100 monthly and if I wait till 67 it's $3000. I'm 58 and I sure don't want to work till 67. I do have 2 separate retirement accounts which I contribute to monthly. I'm a critical care RN but stopped patient care in 2015. I do clinical data abstraction at home for a great company. I'm about to drop to 30 hours per week. This will be my side hustle because I can still work 20 to 24 hours per week for this company. Lots to think about.
You can't manage your own life.
Move on Bob...
He does ok for an old man. Your comment came from left field. Get a life!
Otter can't have 1 show without bashing Tim..I'd block him too
@SassyShirl ha! A name like otter needs blocking anyway! Hope his parents didn't give him that name!!
True esp if the fund is going to be depleted in 10 yrs or they extend the fra or ur only entitled to 3/4 of the prior number. Fact is. He's right, take it.
Tim you always give good advice keep it up I am taking my social security in 2 years when I turn 62 thanks
Stress reduction is EVERYTHING. If you truly love your job be thankful and never quit. Most jobs suck. Most corporations are awful. Most supervisors/bosses are assholes.Days off while healthy is PRICELESS.
You say you have no additional money but your your social security but how did you pay for a new truck and a new trailer
Medical insurance cost at 62?
Depends on your projected income if you apply for the ACA. You can run your numbers on their website.
I know one lady that is doing obamacare until she hits Medicare age. It can be a great way to take care of that gap until you get old enough to qualify for Medicare.
I turned 62 in December and just signed up for SS. I am a nurse and work 3rd shift and it is killing me, both physically and mentally. I am scared to death about quitting, but my husband still works and even if I don't work some side job, we still will be making close to 80,000 with no debt. I need reinsurance that I am doing the right thing.
I agree about retirement but what about the big one the one people are really staying at work for INSURANCE!!!!!! I've checked into it and it's expensive.
Charlie
Waiting doesn’t get you more money because it’s based on years of life expectancy
How is it affected if you are married and both have an income?
Tim due to inflation standard deduction for 2024 is now 14,600. It went up from the 13,850.
Thankful my gizzards aren’t worn out 😂
Sorry Tim Wal-Mart sucks is garbage
Hey Tim if my retirement is 66 1/2 am I still able to file early retirement at 62 or do I need to wait till 63 1/2?
If your FRA is 66.5, you can retire early at 62 and apply 3 months prior to turning 62. You should definitely contact the local SSA or go online to their website to see the amounts you qualify for.
Hi Tim, I’m preparing for my retirement at 62 as it’s only a year and a half away. I have a kosher job at Zaxbys that I will be keeping when I retire. The reason being is I have great health insurance through them that I need to keep. I can’t wait to see what I will be doing working 30 hours a week instead of 90 in my retirement.
What do you do for insurance? ACA?
I’m 65 and I’m on Medicare advantage Hummel plus plus they put $150 back into my Social Security every month. Free! 😎
Tim, what did you for healthcare before Medicare? I believe that may be the question.
I use the affordable care act, age 61 which doesn’t matter, only mentioned because I’m not close to Medicare eligibility.
For a decent plan, similar to the plan I was paying for through work, we pay $200 per Month for a family plan. It’s based on projected income and is squared during tax filing for that year’s income if you earn more than projected by collecting 401k for example.
Go on line for an estimate to get a better understanding on much it will cost.
Work with a reputable financial advisor who will review your full portfolio, income, savings , debt, investments, expenditures etc and then offer guidance on retirement timing and collecting SSA.
Fact is...that Bum, once you add foodstamps, medicaid and HUD is better off than a Lower paid social security recipient that worked their 35 years at a minimum wage job !
I would say that ideally it would be great to have multiple sources of income i.e. from tax-deferred retirement accounts, after-tax accounts like Roth IRAs or Roth 401ks, taxable brokerage accounts, rental property income, etc. This could also include a side hustle as Tim includes. If you do have other sources to draw income from and Social Security isn't necessary, I would prefer to take Social Security early at 62 and invest those funds to get a higher return than by waiting years to get a higher Social Security check. Tim is right in that tomorrow is never guaranteed. However, if you do not need the income, why not take it early and invest it for a higher return? You could end up creating another asset that in the future could provide another source of income if needed.
That wasn’t my Walmart experience, I chose to move on 😊
Dexter Scott King, the youngest son of civil rights icon Martin Luther King Jr., died Monday from prostate cancer, according to The King Center. He was much too young.
He was 62 years old.
Yep. That's the point. We don't know how long we will live which is why it's best to get SS as soon as you can.
This is fine until your body is worn out and you have to live on your early SSI. My best friend is 70 and can’t quit working her part time job because she took her SSI at age 62. I own my own business 34 years and still working at age 72. I delayed my SSI until age 70 so it would be an amount I could actually live on once I can’t (or choose not to) work. Not everyone has a “prison job”. Sounds like your made some bad work choices.