I did it at 62. I did the math and the decision was fairly easy. If it wasn’t the best thing to do for us, the government wouldn’t be trying to bribe us to wait.
Glad to hear someone say everyone’s situation is different and taking Social Security is dependent on their respective life situations, not a maximum payout nor number of payments made.
My thoughts about collecting early is if you live a long time thinking you could have collected more waiting to start later. Think if you end up in a nursing home at 80 kicking yourself in the butt. 😮 Yeah you lived long, but where?
@@wheelie642 Your chances of ending up in a nursing home are high no matter what you do, unless you have exceptionally solicitous family, and often not even then.
I agree with you! I took mine (or will be this month) early at 62. I did the analysis and if I wait until I am 70 to file, I would not break even until I was 81. According to social security, my life expectancy is 85. Given that, I am not willing to take that bet for 4 years of benefit, especially given the time value of money of those cash flows. For me, a bird in hand is worth two in the bush.
If you live to 81, you will have collected the same amount of money from the Social Security system. But what you will have lost financially is th5 years of regular income from your job. ( 5 years x $50,000/ year) added to what you get from SS. I agree that you may benefit from not having to work. But the financial advisor was trying to justify retirement only based on financial gain numbers.
@@TheHavocdogit's not 'IF' I live to 81 but 'WHAT IF' I live to 81, if I die before breaking even I won't be here to know it but if I live far beyond 81 the money difference will be needed
@@TheHavocdognot to mention The extra money going into a 401k.. hey, if someone can afford it great. I'm in my 50s and I'd go now if I could afford it but those last working years will be beneficial for my wife and I
People…pay off your homes BEFORE retiring! Work your tails off to become free of consumer debt…it will make your decision far easier if you have nothing but living expenses and putting away $$ for taxes, insurance, repairs on your homes. My mom passed away with a balance owed on her very modest home…she was 86 years old. Folks…please pay those homes off. Life will be far easier.
@@MarcIverson I respect your position…however, I’d prefer to have zero risk with a paid for home should my finances/investments tank. I have no regrets being free of consumer debt.
Not for us with 2.625% mortgages and already living in a retirement community when house prices were half what they were just 6 years ago. You still have to pay property taxes and home insurance.
My wife and I worked with Drew on our EKG and we’re so thankful we did .What you see is really how he is when you meet with him and his family at pearl wealth as he calls them. God bless
The break even age is ridiculous people, you take it when it’s available. You’re not losing money. The amount is what the amount is at the time if anything take it and invest it if you don’t want it. You’re not gonna be healthy 11 years later at the break even point
If you wait until age 67 to collect, the monthly amount you will receive will be 42.86% more than the amount you would have received at age 62. Okay, that percentage is not high enough for you. That's fine. I don't have a problem with that. But I'm very curious to know how high the percentage would have to be before you _would_ consider delaying your benefits. 50%? 60%? Alternately, flip the question around. Let's say the system changed and instead of a 30% deduction in benefits for drawing early, at age 62, it was changed to a 40% deduction. Or maybe 50%. Is your attitude still the same? You take what's available? How low would it have to go before you agreed that waiting to get the full amount was the best move? Where do you draw the line? You HAVE to consider both the increase percentage you will get by waiting, _and_ the time frame involved. Those two factor must form the entire basis for your decision. According to your logic, if you were on a game show, for example, and the host offered you $1,000 now... or $25,000 a year from now, or $30,000 or $40,000, you would not hesitate and take the $1,000 now... because that is "what's available." Well, that's not necessarily a smart move. Finally, your final thought is not true at all. Many individuals are very healthy at the break-even point.
IMO most people who want SS at 62 are in that situation because they never knew how to, or wanted to, save anything AT ALL. So how would they suddenly invest their new SS income at 62? No, they will spend it like the previous 45 years. Acquaintances of mine I really care for have saved nothing over decades despite employers who offered generous 401k plans, and are so eager to take SS at 62. It almost guarantees a poverty retirement, They really need to consider working until 70 and not taking SS until 70. But it is their money, their choice.
Largely true. However, any saved $$ should be invested, placed in a high yield savings account, or redeemed for precious metals. My mother is a saver & puts her dollars in a safe. Keep telling her there’s better options but she just like having those fiat dollars at the ready. 😮
@@MrCem1016 Mine too. Keeps $30k in checking account "just in case." I tell her how much the goofy official CPI inflation numbers say she's losing per year and that doesn't faze her. Tell her how much she's losing according to sites like Truflation and it wrinkles her brow, but just for a moment. Since she's retired, she can never get that money back.
My husband retired last year at 62 and went from working full time to part-time. I'm a bit younger so we have health insurance through my job. It's been the best thing for us. We do have our home paid off. Both of us lost parents at younger ages(60s) so it changes our perspective on working until 65 or 67. We want some good years of working less. I plan to start drawing as soon as i can too. He gets a lot of guff from acquaintances because he went part time. We figure they are just jealous.😉
Yes two more years till 62, then I'll go work part time. Because you'll never know... Enjoy life when you still are walking 🚶♂️ and not using a daaaaammmmm walker...😂😊
FINALLY at the very end you admit that everyone's situation is different, Social Security is not a one size fits all. I took SS at FRA 4 years ago which was 66 and it was the right decision for me but in my early 60's was time to build up my investments and savings as I had no debt and I actually had a great job. I enjoyed AND I was at the highest pay for my career so it was easy to put away extra money. My wife finally goes out at 70 this year and she's been on phased retirement working 15 hours a week so she gets out of the house and she has a decent pension. I count all our blessings and hope to leave our kids a decent inheritance.
I did some "unscientific" calculations to compare taking it at age 62 and 67. I used the social security website to get the benefit amounts and assumed the same earnings in either case and also assumed I'd retire at age 62 and start taking social security immediately or wait 5 years. If I start taking it at age 62, I would come out ahead (relative to the benefits starting at age 67) up until age 78. Average life expectancy for a man in the US is 76.3 years, so seems like a no brainer to me to start collecting it at age 62. You also get more time to enjoy it.
Yes, the current life expectancy is around 76 years old. That age of 76, however, is for someone _who is born today._ That's actually not relevant. For someone who has _already reached_ the age of 62, they can now expect to live longer than age 76. The average 62-year-old male will live another 19 years. The average 62-year-old female will live another 22 years. Note that for the female, this is five full years past her break-even age of 78 years and 8 months.
It depends on your situation if you have no retirement savings, or pension you might want to wait until 67 this way you can pay off the house and other debt and collect your SS at 67 plus you would get Medicare at 65 if you retire at 62 there are only so many hours you can work a week plus you would still have to pay for healthcare you won’t receive Medicare until 65
@@2119rocky Agreed. I prepared for retirement since I graduated from college. I had my 401K contribution taken out of my second paycheck. 34 years later at same company retired at 57.
Love this video Drew , finally someone willing to say it’s ok to take SS to pay for your wants , I turn 62 later this year and it will make a huge difference for the wants …
Drew is right. However, in my situation, I elected not to take SS yet because I would be limited to $22K per year. My job is fun and easy and I'm not ready to give that all up yet. I only work part time and I use my pay to fund my wants, which does a better job than $2K from SS.
The numbers on the 62 yr old column dont seem to add up to me. How do you pull out 42k a year with a rate of return of 4% for 2 years and end up with more money than you started with? 550k with 4% RoR = 22k year.
Yes we do have software and that is what was used for the whiteboard calculations. Thank you so very much for all the comments and watching! The algorithm thanks you!
@@daveharness70 your number is based on monthly rate of return 0.00333 (0.04 / 12 = 0.00333). The software that he used based on annual rate of return 0.04. so your number and his number are both correct depending on how you calculate the rate of return. So it's depends on how one pulls money out from the initial amount, if you pull out 3,575 each month then use your number, but if you wait for the initial amount to cumulate for 12 months then pull 42,900 out for a year spending then use his number. Hope that make sense.
That 550,527 number is definitely wrong (maybe a couple of numbers transposed when written on the white board) because if this is the case, then the retirement account balance will just continue to go up. But the calculations after that look correct, with the correct balance (without the transposed numbers) used in the calculations.
Well this is ok for those with $550k saved but a lot of people have far less including boomers. For those with low or no savings, the case could be made to wait at least until 65 when Medicare kicks in. Better yet, wait to take SS until Full Retirement Age (66-67). The annual growth by waiting is guaranteed 7-8% annual for each year you do not take it. That is an excellent investment return, especially considering most people including me have little or no investment success.
I reason I am not or did take it at 62 is because I want to earn more than 22k a year. If I wait until my full retirement age I can earn as much as I want without Social Security ding me.
If you take SS at 62 vs 70 you break even at 79 with no investing ---if you invest 6% in both scenarios you break even at 91--money is fungible so the spending in your example and the starting balance don't need to be introduced to make your point-- I have heard many channels like this that also comment on IRA conversions and taking SS as late as possible-- Take SS as soon as you can after you stop working and don't do IRA conversions unless you have a good reason
People, please consider the time-value of money when considering your “break-even” point. If you can earn a good return, or pay down high-interest debt with it, then taking it early makes even more sense.
Money at risk in the market will not have a linear decline. The markets could go up fast or down fast over time. Also, there could be unexpected high expenses as your journey comes to a close. The most important thing to consider is time. Time is a commodity that can never be replenished. Retiaries can find part time jobs or make money on line to fill any gaps. 62-63 is best if you can do it.
retired at age 50 and fell right into the routine phase: biking, pickleball, swimming, hiking and service work. That's it! I plan to take SS as early as possible, because I never counted on a dime. It's all just gravy! I married and raised 5 kids who all turned into achievers as well. I don't see any of them working past age 50 unless they choose to. I planned my retirement as a teen, and it worked! It's been 10 years, and LIFE IS WONDERFUL! The last thing any of us should do is be in a position where the government is a means of support. That's a prescription for poverty, dependence and early death.
I'm going for it - will be 63 in 2months - will continue to work full time - but want to pay my debts down - and perhaps dump some 4% return $$$... Thank you for sharing this!
Problem is you will have a lot of your social security withheld if you earn much at all -- I think it's 19k as of this year. For every dollar earned, $2 of social security is withheld. "Supposedly" (I'm not a big fan of promises) you will eventually get it back, but if you have to wait until whenever eventually actually is, there's far less point in getting your SS early in the first place. It's one thing to cut your SS payment down if you're getting the full benefit while working ... but you don't.
I thought about waitning to take it at 67 but realized I would be pulling funds from my portfolio for 5 years if I did that so the math just doesn't work out to justify the opportunity costs to my portfolio.
Some barriers to think about are 1) Your social security is not enough to survive on. 2) You still have a mortgage to pay. 3) You will have no health insurance if you leave your job (Medicare does not kick in until 65). Social Security caps what you can make in a year so they will stop paying you if you go over that amount. $22,300.00 is the earnings limit currently. Just throwing this out there. I would love to retire but cannot afford health insurance, paying off my house, the reduction in income.
Excellent points. I'm in roughly the same position. Social security would barely cover my expenses, but those expenses could rise(healthcare costs certain to rise with age), and I would have no health insurance. I'll have to keep working, but if I tried collecting SS at the same time, the govt. would cut my check down considerably. Btw I think it's at 67 that full Medicare kicks in now.
The faster you get your money the better off you will be. Most people don't live till 67 and that is the plan they have. Keep you off the pay roll of retirement. We'll like you said for a very good reasons most take retirement early. And most do not have the luxury of a other funds. Thinking of age 64 to start these funds for retirement SSA collection..! Thank you for your advice Sr.
Great video, still unsure what to do myself. Retiring end of this year at 63 1/2 will have a pension of about 3100.00 per month. ( Has a guaranteed min 1 percent increase per year) Spouse is year older and took SS at 62 which only 1k month. Spouse family history no one has made it past 86 I guess I should have you look at this for me.
The rate of return cannot cover/offset the spending. I think there's just a couple of numbers transposed in the yr 62 balance -- $505,527, instead of $550,527.
Most important thing he said "is it for your 'Needs' or your 'Wants'. If your expences are already taken care of, best take the SS money and enjoy it while your still healthy. If you 'Need' the money, and your still able to work, best to grow the SS for a reasonable amount of time with consideration to your expected lifespan.
I looked at the breakeven amount being more from that point on and devided it by the months i would have collected and it's peanuts to wait, especially if you invest a little bit of it and or the dollar is declining for all those years also not to mention nobody knows how long they will live, my conclusion is to collect at 62 and enjoy your last few years my brother died at 63 my sister at 37 I'm 62 in four months from now and i need the money to finish my house build a way better investment than letting the gov. Take it p.s. i am having the time of my life no more job stress no more alarm clock, just have great social connections and enjoy yahoo
I will take it starting in January 2025 because I can, I already have the credits, and many of my contemporary friends are dying way too young. I will be working part-time because thank God I enjoy good health at the moment. Is a no-brainer. Thank you for your advice. God bless you.
Why I make good money and work a few hours a week in a job I enjoy so there is no reason to retire early. I can take time off when ever I want for traveling... 124% at 70 sounds better.... And I am debt free.... And working is good for your health....
I retired and will collect at 62,i have no mortgage nor car payment, my husband and i decided with our sss is enough for our monthly expenses and out retirement accounts will be use as needed only
I have had 2 TKR with the 29 years & 11 Months with the USPS as a Letter Carrier and just recently retired 6 months and now getting my Pension. I have also done 19 1/2 year in the Military and also getting a pension as well and next month Sept '24 I will apply for Social Security before I turn 62 this November '24.
Good example. Some of us have large IRA balances so delaying SS and spending down the IRA will help with future RMDs. If you have a $2m IRA earning 5%, you can withdraw $100k per year without touching the principal.
Single person here. I have a pension and health insurance from a hazardous duty job. But I also have health issues which make me question how long I will live due to the stressful work. Haven't worked since 2009 and have lived off my retirement money. If I get SS at age 63 I will get $1880 and change per month but 85% of that will be taxed because I make over 50K per yr from pension. What does someone like me do then? No one seems to address this type of person. Taking early I can pay off my house in 2 years. I wish I could work but can't do it after such a stressful career. So I've lived off my retirement since 2009. I can still save money for house fixes too. I don't live luxuriously and am cognizant of saving as much as possible for any emergency. I have health insurance until age 65 where it will switch over to Medicare when I sign up, and have my other insurance as secondary. So I am covered there. Should I take at 63, 67 or 70? I am 62 1/2 years old right now.
I agree. I am taking mine from last year when I turned 60. Have 2 other passive incomes and work 26 hrs a week. My parents died in their 60s and I have no debts and no dependents and some money in IRA, CDs and 5 mths emergency funds, none of will be touched till I have to.
At 6:00 Exact precise? If we knew future returns we would all exactly know what to do. Yes claiming Social Security early and letting your portfolio grow has worked well many times in the past but we don't know the exact future for our personal timeline
And yet tomorrow will come... for the average 62-year-old. The average 62-year-old male will live another 19 years. The average 62-year-old female will live another 22 years. (You can verify these figures with any of those Actuarial Life Tables. There's one at the SS website.) The break-even point for someone filing at 67 vs 62, is 78 years and 8 months. Thus, the average 62-year-old female will live a full five years longer than her break-even point. Hopefully you have a plan in place when and if "tomorrow does come." Your plan, of course, will apparently include your small, reduced SS check.
Omg…I love this video! I just subscribe. I was gonna wait until 65 not anymore. I’m gonna collect mine at 62 next year. I’ve been contemplating and I made up my mind. Plus tomorrow is not promised so I might as well start next year. Btw…greetings from the 🇵🇭. I quit my job at age 53 after a divorced. I had my house built here in the 🇵🇭. I paid cash with everything with the help of the money I got from my divorce. At 59 1/2 I got my pension from my past employer. It’s not much but it goes further here. My social security pension will not be much either because I only worked in Seattle 🇺🇸for 25 yrs however I think I worked in 🇨🇦 for 8 years. Thanks much for this helpful infos. Where are you located in the States?
The erosion rate of the dollar due to government debt really demands 62 years old. The cost of living adjustment only helps a little. Do you trust the government to control spending? The probability of getting paid at 62 is greater than at age 70.
Why are you down to zero dollars in the second scenario? If you have a ROTH IRA, there is no RMD. You can leave money in there for as long as you want. You can live on social security, pension (if you have it), and withdraw each year from your Traditional IRA (leaving the ROTH alone until you absolutely need it).
im one of those people im taking ss at 63 not waiting ..its better than waiting till 67 i have no debt expenses about $4500/month i may work pt but who knows..i just dont want to drain my ROTH funds by the time im 70 and then rely on SS only to survive
I really liked this video. I have similar inputs and projected the same for when to take social security. Also I might l like to meet sometime in the future as I have family on both coast of Florida to discuss my options.
I appreciate the video, and it sent me off to build a spreadsheet. But you cannot pull $42,900 off of $550k age 60 and 61, with only a 1% annual net gain over inflation, and end up those two years with more than you started. Withdrawal rate is 7.8%.
Why not drop your investments into high yield dividend ETFs with returns of 4%-12%? SCHD OR JEPI or even SVOL will give you enough income in that portfolio without touching your principle. I never see financial planners even consider dividends...
Unless my life projections changed RADICALLY! There is no way I’m taking SS at 62. I’m going to draw down the 401k so I don’t pay higher taxes at 70. I’m already collecting a pension of 3k at 61. SS will be 3k at 70.
I enjoy and watch a few of the leading financial advisors on internet, however I am learning the most from you! Writing the examples on board while explaining is so helpful to understand. Throwing a little humour in a dry subject (Omaha) was great! I was struggling with what percentage to take -and you have made me feel confident that it is indeed individual. I will look forward to more episodes, and thank you😊
If you have the ability to not take it until you are 70, that means you have other sources of income. If you take it at 62, you can invest all of your SS money. For 8 years of SS payments, invested in a tax free muni account, with compounding, you will have well in excess of $200K. So when you turn 70, armed with the $200K invested in the muni acct, paying you 5% a year, added to your continued lower 62 year old SS payment, you will get the same amount of after tax money as if you waited until you turned 70 to collect. The difference, you have over $20OK in the bank.
Why is the term "full retirement age" used? If the benefit potentially starts at 62 and increases at the same rate until 70, other than hitting to top payout for a surviving spouse, what relevance does that age carry?
It makes no sense to take SS at age 62 if you have investments (especially Roths or brokerage funds) you can draw from until eligible for Medicare at 65 if you need to buy health insurance through the Marketplace. Drawing SS would raise you annual income, which would negatively impact your subsidy amount.
I would like to take benefits at 65 in 6 months. I am also starting a small business. I have been a high earner for 30 years, and always planned to take benefits at 67. But now that I am almost 65, I would like to start benefits. Say, my small business earns 80K / year. If I exceed the earnings amount, will the SSA screw it up to take back benefits? And how exactly do they take back the excess earnings ? No one ever discusses this point. Appreciate any inputs.
Everyone’s different and I definitely am going to take it later because that is the only secure income. I will have my million dollars in brokerage accounts can go up and down Social Security will remain constant and if you plan to live over 80 years old, definitely take it later! In the meantime, while I’m not taking Social Security, I am in a zero tax bracket so now I can take money out of my 401(k) without paying taxes on it up to $13,000 and qualify for other things that I would not be able to if I had a verified income Which Social Security is. Think smarter not harder.
What if? I could take social security and work a part time job. Then I would not even have to touch my savings. My concern is I have a wife 16 years younger than me ( I am 59) and a 15 year old and a ten year old. When , I retire (looking at 62) I will no longer have a life insurance policy and my saving will be all if something happens to me ( currently my saving is 710,000.
I agree. Later in life, I'd much rather have the peace of mind of a larger portfolio than a few hundred dollars more per month in a Social Security check.
If your still making high income then taking early ss is not beneficial as the tax on it is very high. Taking early only works if you don’t work that is you actually are retired. I agree take it at full retirement age but don’t wait to get an increase in benefits that usually is very bad.
For some people the social security can even pay for your bills specialy.if you have a mortgage insurance car maybe for some people but not for some if I take it at 62 I will be a homeless
I come up with $362k not $312k in the 67 example. Start with $550k withdraw $300k over the 7 years which is $250k. Average balance over the 7 years earning 4% interest is $400k or $16k per year times 7 =$112k plus $250k = $362k
I bailed out six minutes in. My sister and I are both collecting, she started at 62, I waited until almost 70. She always made more money than me, but my benefit is over $1000. a month higher than hers. And guess whose COLAs are bigger? and guess who paid off his mortgage before retiring? and guess who had 7 more years to pad his nest egg?
You're not comparing apples to apples. Of course if you keep working until 70 and someone else retires at 62 you will have more money. That has nothing to do with this video.
@@rosemarykingpate7832 I was retired for two years and went back to work full time. Retirement was not for me, not yet. I have plenty of time to ride my bike and/or go for a swim before work and I absolutely love my job. I plan on working at least until I'm 74 or 75. I have a coworker in his 80's. I have all the time in the universe.
The calculations you use for cost of living is grossly below what you would need to survive in a big city like Los Angeles or New York, especially for people that rent. A 2bed apartment is over 3k right now and I’m 57. We may need to move to a less expensive state.
Error in second example. First year- 550,000 - (3575 x 12) = 507,100 507,100 x 1.04 = 527384 Second year 527,000-(3575 x 12) = 484,100 484,100 x 1.04= 503,464 You have 550,527
Would it make sense to take my Social Security at 62 if my wife is still working and making over 200 K per year. I am nine years older than my wife and I wanted to take my Social Security early but not if they’re going to take a bunch of tax money out of it?
The problem I see is take it at 62 I get 2000 a month but working I get 60k a year that will cost me about 10k a year in penalties so I cannot take it early and still work my fairly easy job. You see my predicament
Drew is on the money (no pun intended). Claiming SS depends heavily on your situation. My opinion... today, most people will have to work until at least 65 and unfortunately will have to wait to collect SS, because the limit on wages is $22K. For those who have enough to retire, they will have more options.
I used to be the guy who thought I’d take SS at 67 or 70. However, I plan to move overseas and delay getting married and having a kid until I’m at retired. In my case, it makes perfect sense to start taking it at 62. I’ll live like a king overseas even taking SS earlier on. My future wife will be 30-40 years years younger than me. I’d like to see my child reach at least 21 before I’m old and dead.
Biggest question I have, is that Andre Dawson in that picture behind you? Looks like a Cubbie. Hard to tell, could be Sosa, but I'm hoping it's the Hawk!
Something isn't right with that math. Under taking ss early at 62, investment return at 4% = $22,000 before considering declining balance and withdrawals at $3,575 = $42,900 before inflation, and the investment balance increases slightly after 2 years???
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I’m planning on 62,who the heck guarantees we’re living the of tomorrow,I’m not of this world anyway,hallelujah,Glory to God.
Amen 🙏
I did it at 62. I did the math and the decision was fairly easy.
If it wasn’t the best thing to do for us, the government wouldn’t be trying to bribe us to wait.
Thanks for sharing
Thank you. I know too many people who died before retirement so I’m taking it at 62.
I agree with you
Glad to hear someone say everyone’s situation is different and taking Social Security is dependent on their respective life situations, not a maximum payout nor number of payments made.
Exactly Bruce!
My thoughts about collecting early is if you live a long time thinking you could have collected more waiting to start later. Think if you end up in a nursing home at 80 kicking yourself in the butt. 😮 Yeah you lived long, but where?
@@wheelie642 Your chances of ending up in a nursing home are high no matter what you do, unless you have exceptionally solicitous family, and often not even then.
I took mine at 62 and don't regret it.
I'm thinking about retiring at 62...
I'm not sure of later years 65...
Let me know if it's worth it...😢😮
What year was that? I'm 63 now planning to get ss next year, I still work mostly cash .any advice please.
I agree with you! I took mine (or will be this month) early at 62. I did the analysis and if I wait until I am 70 to file, I would not break even until I was 81. According to social security, my life expectancy is 85. Given that, I am not willing to take that bet for 4 years of benefit, especially given the time value of money of those cash flows. For me, a bird in hand is worth two in the bush.
Awesome!
If you live to 81, you will have collected the same amount of money from the Social Security system. But what you will have lost financially is th5 years of regular income from your job. ( 5 years x $50,000/ year) added to what you get from SS.
I agree that you may benefit from not having to work. But the financial advisor was trying to justify retirement only based on financial gain numbers.
@@TheHavocdogby that logic, you’d make more money if you worked until you die and claimed SS at 70 as well.
@@TheHavocdogit's not 'IF' I live to 81 but 'WHAT IF' I live to 81, if I die before breaking even I won't be here to know it but if I live far beyond 81 the money difference will be needed
@@TheHavocdognot to mention The extra money going into a 401k.. hey, if someone can afford it great. I'm in my 50s and I'd go now if I could afford it but those last working years will be beneficial for my wife and I
People…pay off your homes BEFORE retiring! Work your tails off to become free of consumer debt…it will make your decision far easier if you have nothing but living expenses and putting away $$ for taxes, insurance, repairs on your homes. My mom passed away with a balance owed on her very modest home…she was 86 years old. Folks…please pay those homes off. Life will be far easier.
Good advice!
Depends. If you have a low interest rate mortgage but are earning on average more than that rate, you're better off having that low-interest mortgage.
@@MarcIverson I respect your position…however, I’d prefer to have zero risk with a paid for home should my finances/investments tank. I have no
regrets being free of consumer debt.
Not for us with 2.625% mortgages and already living in a retirement community when house prices were half what they were just 6 years ago. You still have to pay property taxes and home insurance.
@@MarcIverson Yeah…because nothing screams “security” like having a monthly mortgage payment. 🙄
My wife and I worked with Drew on our EKG and we’re so thankful we did .What you see is really how he is when you meet with him and his family at pearl wealth as he calls them. God bless
Thank you so much!!
The break even age is ridiculous people, you take it when it’s available. You’re not losing money. The amount is what the amount is at the time if anything take it and invest it if you don’t want it. You’re not gonna be healthy 11 years later at the break even point
True statement
If you wait until age 67 to collect, the monthly amount you will receive will be 42.86% more than the amount you would have received at age 62.
Okay, that percentage is not high enough for you. That's fine. I don't have a problem with that.
But I'm very curious to know how high the percentage would have to be before you _would_ consider delaying your benefits. 50%? 60%?
Alternately, flip the question around. Let's say the system changed and instead of a 30% deduction in benefits for drawing early, at age 62, it was changed to a 40% deduction. Or maybe 50%. Is your attitude still the same? You take what's available? How low would it have to go before you agreed that waiting to get the full amount was the best move?
Where do you draw the line?
You HAVE to consider both the increase percentage you will get by waiting, _and_ the time frame involved. Those two factor must form the entire basis for your decision.
According to your logic, if you were on a game show, for example, and the host offered you $1,000 now... or $25,000 a year from now, or $30,000 or $40,000, you would not hesitate and take the $1,000 now... because that is "what's available." Well, that's not necessarily a smart move.
Finally, your final thought is not true at all. Many individuals are very healthy at the break-even point.
Your logic is flawed@@MrEdwardCollins
@@gtb5216 You spelled flawless wrong.
IMO most people who want SS at 62 are in that situation because they never knew how to, or wanted to, save anything AT ALL. So how would they suddenly invest their new SS income at 62? No, they will spend it like the previous 45 years. Acquaintances of mine I really care for have saved nothing over decades despite employers who offered generous 401k plans, and are so eager to take SS at 62. It almost guarantees a poverty retirement, They really need to consider working until 70 and not taking SS until 70. But it is their money, their choice.
I’m 63 and have already worked longer than I wanted to. I’m quitting this year and will start SS in January 2025.
Awesome!
Me too.
A dollar today is worth more than a dollar tomorrow.
Exactly!
Not really
Largely true. However, any saved $$ should be invested, placed in a high yield savings account, or redeemed for precious metals. My mother is a saver & puts her dollars in a safe. Keep telling her there’s better options but she just like having those fiat dollars at the ready. 😮
@@MrCem1016 Mine too. Keeps $30k in checking account "just in case." I tell her how much the goofy official CPI inflation numbers say she's losing per year and that doesn't faze her. Tell her how much she's losing according to sites like Truflation and it wrinkles her brow, but just for a moment. Since she's retired, she can never get that money back.
Much more, especially since the official CPI numbers are nonsense.
My husband retired last year at 62 and went from working full time to part-time. I'm a bit younger so we have health insurance through my job. It's been the best thing for us. We do have our home paid off. Both of us lost parents at younger ages(60s) so it changes our perspective on working until 65 or 67. We want some good years of working less. I plan to start drawing as soon as i can too. He gets a lot of guff from acquaintances because he went part time. We figure they are just jealous.😉
Thanks for sharing!
I'm a heavy equipment mechanic I Age 60 it's hard on the body. I plan on doing the same 😊
Yes two more years till 62, then I'll go work part time. Because you'll never know... Enjoy life when you still are walking 🚶♂️ and not using a daaaaammmmm walker...😂😊
FINALLY at the very end you admit that everyone's situation is different, Social Security is not a one size fits all. I took SS at FRA 4 years ago which was 66 and it was the right decision for me but in my early 60's was time to build up my investments and savings as I had no debt and I actually had a great job. I enjoyed AND I was at the highest pay for my career so it was easy to put away extra money. My wife finally goes out at 70 this year and she's been on phased retirement working 15 hours a week so she gets out of the house and she has a decent pension. I count all our blessings and hope to leave our kids a decent inheritance.
Thank you so much for sharing! Great comment!
could have swore he said it 'depends' at :36 in - but yeah - you just need to be educated on it and then decide for yourself
I did some "unscientific" calculations to compare taking it at age 62 and 67. I used the social security website to get the benefit amounts and assumed the same earnings in either case and also assumed I'd retire at age 62 and start taking social security immediately or wait 5 years. If I start taking it at age 62, I would come out ahead (relative to the benefits starting at age 67) up until age 78. Average life expectancy for a man in the US is 76.3 years, so seems like a no brainer to me to start collecting it at age 62. You also get more time to enjoy it.
Awesome Math!
If a man is 65 then his life expectancy is 82. The 76 you mention is from birth.
Yes, the current life expectancy is around 76 years old. That age of 76, however, is for someone _who is born today._ That's actually not relevant. For someone who has _already reached_ the age of 62, they can now expect to live longer than age 76.
The average 62-year-old male will live another 19 years. The average 62-year-old female will live another 22 years.
Note that for the female, this is five full years past her break-even age of 78 years and 8 months.
I ran the math and I would break even at 78.
Took SS with a pension at 62. Debt free.
Live within your means. No regrets.
In your scenario if you assume SS is invested at 6% the breakeven is 91--
I took SS at age 65 . I’m 68 now and I have no regrets !!!
Yes, take SS at 62!!!! Makes total sense financially.
Thanks for watching!
It makes sense to you. It’s not a good advice for everybody.
@@KMarik Yes it was to me. VERY good choice. Thanks
It depends on your situation if you have no retirement savings, or pension you might want to wait until 67 this way you can pay off the house and other debt and collect your SS at 67 plus you would get Medicare at 65 if you retire at 62 there are only so many hours you can work a week plus you would still have to pay for healthcare you won’t receive Medicare until 65
@@2119rocky Agreed. I prepared for retirement since I graduated from college. I had my 401K contribution taken out of my second paycheck. 34 years later at same company retired at 57.
Love this video Drew , finally someone willing to say it’s ok to take SS to pay for your wants , I turn 62 later this year and it will make a huge difference for the wants …
Same with me
Drew is right. However, in my situation, I elected not to take SS yet because I would be limited to $22K per year. My job is fun and easy and I'm not ready to give that all up yet. I only work part time and I use my pay to fund my wants, which does a better job than $2K from SS.
Yes Mitch!!
The numbers on the 62 yr old column dont seem to add up to me. How do you pull out 42k a year with a rate of return of 4% for 2 years and end up with more money than you started with? 550k with 4% RoR = 22k year.
That was my first thought as well. I would love to see the math on that...
I think $550,527 should be $505,527....or something closer to that.....
Yes we do have software and that is what was used for the whiteboard calculations. Thank you so very much for all the comments and watching! The algorithm thanks you!
@@daveharness70 your number is based on monthly rate of return 0.00333 (0.04 / 12 = 0.00333). The software that he used based on annual rate of return 0.04. so your number and his number are both correct depending on how you calculate the rate of return. So it's depends on how one pulls money out from the initial amount, if you pull out 3,575 each month then use your number, but if you wait for the initial amount to cumulate for 12 months then pull 42,900 out for a year spending then use his number. Hope that make sense.
That 550,527 number is definitely wrong (maybe a couple of numbers transposed when written on the white board) because if this is the case, then the retirement account balance will just continue to go up. But the calculations after that look correct, with the correct balance (without the transposed numbers) used in the calculations.
Well this is ok for those with $550k saved but a lot of people have far less including boomers. For those with low or no savings, the case could be made to wait at least until 65 when Medicare kicks in. Better yet, wait to take SS until Full Retirement Age (66-67). The annual growth by waiting is guaranteed 7-8% annual for each year you do not take it. That is an excellent investment return, especially considering most people including me have little or no investment success.
Yes!
I would retire at 62. no one know how long we are going to live. But everyone is different. Thank you drew I appreciate your video
Thank you for watching!!
I say take at,. why wait until your 65. or 70's or even work past 62, god forbid you get hurt on your job.
Start with how long your parents lived and then decide.
@@gracieguido1056 Regardless whether you retire or not, you can still withdraw your SS while still working. I'm not sure I can afford to quit working.
I reason I am not or did take it at 62 is because I want to earn more than 22k a year. If I wait until my full retirement age I can earn as much as I want without Social Security ding me.
Exactly!
But you would get it back ss would recalculate at your fra
If you take SS at 62 vs 70 you break even at 79 with no investing ---if you invest 6% in both scenarios you break even at 91--money is fungible so the spending in your example and the starting balance don't need to be introduced to make your point-- I have heard many channels like this that also comment on IRA conversions and taking SS as late as possible-- Take SS as soon as you can after you stop working and don't do IRA conversions unless you have a good reason
Love this video! Thanks for doing this. You’re awesome, Drew! Glad to have you as my financial advisor.
Thank you so much for watching!!
People, please consider the time-value of money when considering your “break-even” point. If you can earn a good return, or pay down high-interest debt with it, then taking it early makes even more sense.
True
Money at risk in the market will not have a linear decline. The markets could go up fast or down fast over time. Also, there could be unexpected high expenses as your journey comes to a close. The most important thing to consider is time. Time is a commodity that can never be replenished. Retiaries can find part time jobs or make money on line to fill any gaps. 62-63 is best if you can do it.
retired at age 50 and fell right into the routine phase: biking, pickleball, swimming, hiking and service work. That's it!
I plan to take SS as early as possible, because I never counted on a dime. It's all just gravy! I married and raised 5 kids who all turned into achievers as well. I don't see any of them working past age 50 unless they choose to.
I planned my retirement as a teen, and it worked! It's been 10 years, and LIFE IS WONDERFUL!
The last thing any of us should do is be in a position where the government is a means of support.
That's a prescription for poverty, dependence and early death.
I'm going for it - will be 63 in 2months - will continue to work full time - but want to pay my debts down - and perhaps dump some 4% return $$$... Thank you for sharing this!
You can do it!
Problem is you will have a lot of your social security withheld if you earn much at all -- I think it's 19k as of this year. For every dollar earned, $2 of social security is withheld. "Supposedly" (I'm not a big fan of promises) you will eventually get it back, but if you have to wait until whenever eventually actually is, there's far less point in getting your SS early in the first place. It's one thing to cut your SS payment down if you're getting the full benefit while working ... but you don't.
I took it at 63, excellent decision I made…🙌
Nice!
Thanks for the info, Drew. Your videos are priceless! I struggle with the question and you just made taking SS @62 more realistic!
Glad it was helpful!!
How much is your health insurance going to cost per month until you turn 65 and become eligible for Medicare?
Mine would be zero, I’m a New York municipal employee.@@calvinreichelderfer7989
I thought about waitning to take it at 67 but realized I would be pulling funds from my portfolio for 5 years if I did that so the math just doesn't work out to justify the opportunity costs to my portfolio.
Awesome job doing the math!
Some barriers to think about are 1) Your social security is not enough to survive on. 2) You still have a mortgage to pay. 3) You will have no health insurance if you leave your job (Medicare does not kick in until 65). Social Security caps what you can make in a year so they will stop paying you if you go over that amount. $22,300.00 is the earnings limit currently. Just throwing this out there. I would love to retire but cannot afford health insurance, paying off my house, the reduction in income.
Thanks for sharing!
Yeah, unless you can pay for your OWN healthcare? You CAN'T retire early 😢@@yourfinancialekg
Excellent points. I'm in roughly the same position. Social security would barely cover my expenses, but those expenses could rise(healthcare costs certain to rise with age), and I would have no health insurance. I'll have to keep working, but if I tried collecting SS at the same time, the govt. would cut my check down considerably. Btw I think it's at 67 that full Medicare kicks in now.
$22,300 = Medicaid
@@duckling4393 I don't think you will qualify for it if you are getting SS and working.
I took mine at 69 1/2. That was the best for me. Do your own calculations based on your own situation.
Yes!
The faster you get your money the better off you will be. Most people don't live till 67 and that is the plan they have. Keep you off the pay roll of retirement. We'll like you said for a very good reasons most take retirement early. And most do not have the luxury of a other funds. Thinking of age 64 to start these funds for retirement SSA collection..! Thank you for your advice Sr.
Thank you so much for watching!
Great video, still unsure what to do myself. Retiring end of this year at 63 1/2 will have a pension of about 3100.00 per month. ( Has a guaranteed min 1 percent increase per year) Spouse is year older and took SS at 62 which only 1k month. Spouse family history no one has made it past 86 I guess I should have you look at this for me.
Let’s do it Sue!
Im 57, and could get $3500 a month now with free health insurance, trying to decide now.
Thank goodness for the VA. I really truly wish we'd finally join the rest of the first world and offer that same care for everyone.
Thank you for your service!
Yes, it's time for us to grow up as a nation and act like the first-world nation we supposedly are.
The math on the age 62 side seems off. Maybe you can explain how their investment went up from age 60 to 62.
The 4% return offset the inflation adjusted spending for 2 years. I haven't done the math, but that probably would not be the case at age 63.
Yes!
The rate of return cannot cover/offset the spending. I think there's just a couple of numbers transposed in the yr 62 balance -- $505,527, instead of $550,527.
Most important thing he said "is it for your 'Needs' or your 'Wants'. If your expences are already taken care of, best take the SS money and enjoy it while your still healthy. If you 'Need' the money, and your still able to work, best to grow the SS for a reasonable amount of time with consideration to your expected lifespan.
Great comment!
I looked at the breakeven amount being more from that point on and devided it by the months i would have collected and it's peanuts to wait, especially if you invest a little bit of it and or the dollar is declining for all those years also not to mention nobody knows how long they will live, my conclusion is to collect at 62 and enjoy your last few years my brother died at 63 my sister at 37 I'm 62 in four months from now and i need the money to finish my house build a way better investment than letting the gov. Take it p.s. i am having the time of my life no more job stress no more alarm clock, just have great social connections and enjoy yahoo
Thanks for sharing!!
I retired at 61 from the govt and started drawing from SS at 62. I am diabetic and you never know what can happen..
True!
I will take it starting in January 2025 because I can, I already have the credits, and many of my contemporary friends are dying way too young.
I will be working part-time because thank God I enjoy good health at the moment. Is a no-brainer. Thank you for your advice. God bless you.
Why I make good money and work a few hours a week in a job I enjoy so there is no reason to retire early. I can take time off when ever I want for traveling... 124% at 70 sounds better.... And I am debt free.... And working is good for your health....
Thanks for sharing!
You do not work a hard physical job. Some can not keep working past 62
Stress and frustration aren’t good for my health. Kissing the job goodbye this year.
Time is not a given… memento mori.
@@alejandrobustamante7964 But working gives a person purpose as well...
I retired and will collect at 62,i have no mortgage nor car payment, my husband
and i decided with our sss is enough for our monthly expenses and out retirement accounts will be use as needed only
Thanks for sharing!
My wife & I took my benefit @ 62 & enjoy the added income. I'm not waiting to "catch up ". We have a prosperous retirement.
Awesome!
I have had 2 TKR with the 29 years & 11 Months with the USPS as a Letter Carrier and just recently retired 6 months and now getting my Pension. I have also done 19 1/2 year in the Military and also getting a pension as well and next month Sept '24 I will apply for Social Security before I turn 62 this November '24.
Awesome!
Wow. When did you start working
Excellent conservative approach- Thanks!
Glad you liked it!
Good example. Some of us have large IRA balances so delaying SS and spending down the IRA will help with future RMDs. If you have a $2m IRA earning 5%, you can withdraw $100k per year without touching the principal.
Yes!
Single person here. I have a pension and health insurance from a hazardous duty job. But I also have health issues which make me question how long I will live due to the stressful work. Haven't worked since 2009 and have lived off my retirement money. If I get SS at age 63 I will get $1880 and change per month but 85% of that will be taxed because I make over 50K per yr from pension. What does someone like me do then? No one seems to address this type of person. Taking early I can pay off my house in 2 years. I wish I could work but can't do it after such a stressful career. So I've lived off my retirement since 2009. I can still save money for house fixes too. I don't live luxuriously and am cognizant of saving as much as possible for any emergency. I have health insurance until age 65 where it will switch over to Medicare when I sign up, and have my other insurance as secondary. So I am covered there. Should I take at 63, 67 or 70? I am 62 1/2 years old right now.
I agree. I am taking mine from last year when I turned 60. Have 2 other passive incomes and work 26 hrs a week. My parents died in their 60s and I have no debts and no dependents and some money in IRA, CDs and 5 mths emergency funds, none of will be touched till I have to.
Awesome!
it's so refreshing to have an example with a realistic budget!
Yes!
This is for people that have saved thousands of dollars.
I don’t have any savings.
Little money on 401K
So I’m going to work until 67
Maybe.
At 6:00
Exact precise? If we knew future returns we would all exactly know what to do.
Yes claiming Social Security early and letting your portfolio grow has worked well many times in the past but we don't know the exact future for our personal timeline
Don't you have a crystal ball too? Good point John!
I plan on it ,tomorrow is not guaranteed
Boom
And yet tomorrow will come... for the average 62-year-old.
The average 62-year-old male will live another 19 years. The average 62-year-old female will live another 22 years. (You can verify these figures with any of those Actuarial Life Tables. There's one at the SS website.)
The break-even point for someone filing at 67 vs 62, is 78 years and 8 months. Thus, the average 62-year-old female will live a full five years longer than her break-even point.
Hopefully you have a plan in place when and if "tomorrow does come." Your plan, of course, will apparently include your small, reduced SS check.
Omg…I love this video! I just subscribe. I was gonna wait until 65 not anymore. I’m gonna collect mine at 62 next year. I’ve been contemplating and I made up my mind. Plus tomorrow is not promised so I might as well start next year.
Btw…greetings from the 🇵🇭. I quit my job at age 53 after a divorced. I had my house built here in the 🇵🇭. I paid cash with everything with the help of the money I got from my divorce. At 59 1/2 I got my pension from my past employer. It’s not much but it goes further here. My social security pension will not be much either because I only worked in Seattle 🇺🇸for 25 yrs however I think I worked in 🇨🇦 for 8 years. Thanks much for this helpful infos. Where are you located in the States?
Thank you so much for watching and subscribing! Our firm is located in Tampa.
The erosion rate of the dollar due to government debt really demands 62 years old. The cost of living adjustment only helps a little.
Do you trust the government to control spending? The probability of getting paid at 62 is greater than at age 70.
Thanks for commenting!
Drew I'm 63 and I being thinking of taking my ss soon my thing is what about health insurance
Always take ss early , because if u die , government doesn’t have to pay .. your 401k & Ira s , can be passed to your beneficiaries
Why are you down to zero dollars in the second scenario? If you have a ROTH IRA, there is no RMD. You can leave money in there for as long as you want. You can live on social security, pension (if you have it), and withdraw each year from your Traditional IRA (leaving the ROTH alone until you absolutely need it).
If my husband and i waited till 67 to collect 85% of our SS would be taxable with our other income.
We took it at 62 and none of our SS is taxable.
Awesome!
im one of those people im taking ss at 63 not waiting ..its better than waiting till 67 i have no debt expenses about $4500/month i may work pt but who knows..i just dont want to drain my ROTH funds by the time im 70 and then rely on SS only to survive
Good point!
Thanks for the video 👍😀
No problem 👍
I really liked this video. I have similar inputs and projected the same for when to take social security. Also I might l like to meet sometime in the future as I have family on both coast of Florida to discuss my options.
Would love to help! We can do zoom as well. Reach out to me at drew@pearlwealthgroup.com
I appreciate the video, and it sent me off to build a spreadsheet. But you cannot pull $42,900 off of $550k age 60 and 61, with only a 1% annual net gain over inflation, and end up those two years with more than you started. Withdrawal rate is 7.8%.
Thanks!
Why not drop your investments into high yield dividend ETFs with returns of 4%-12%? SCHD OR JEPI or even SVOL will give you enough income in that portfolio without touching your principle. I never see financial planners even consider dividends...
Not a bad idea
Count in dental care costs, too. Implants and crowns get expensive!
No doubt. Grandma just got an estimate for 10k worth of dental...crazy!
Unless my life projections changed RADICALLY! There is no way I’m taking SS at 62.
I’m going to draw down the 401k so I don’t pay higher taxes at 70. I’m already collecting a pension of 3k at 61. SS will be 3k at 70.
Thanks for commenting and sharing!
That was Awesome !! Great explanation. Omaha omaha 😂 love it.
Rock on!
I enjoy and watch a few of the leading financial advisors on internet, however I am learning the most from you! Writing the examples on board while explaining is so helpful to understand. Throwing a little humour in a dry subject (Omaha) was great! I was struggling with what percentage to take -and you have made me feel confident that it is indeed individual. I will look forward to more episodes, and thank you😊
If you have the ability to not take it until you are 70, that means you have other sources of income. If you take it at 62, you can invest all of your SS money. For 8 years of SS payments, invested in a tax free muni account, with compounding, you will have well in excess of $200K. So when you turn 70, armed with the $200K invested in the muni acct, paying you 5% a year, added to your continued lower 62 year old SS payment, you will get the same amount of after tax money as if you waited until you turned 70 to collect. The difference, you have over $20OK in the bank.
I came to the comment section to leave that exact Message😂
Why is the term "full retirement age" used? If the benefit potentially starts at 62 and increases at the same rate until 70, other than hitting to top payout for a surviving spouse, what relevance does that age carry?
That is just the term for receiving 100% of your Social Security benefit
It makes no sense to take SS at age 62 if you have investments (especially Roths or brokerage funds) you can draw from until eligible for Medicare at 65 if you need to buy health insurance through the Marketplace. Drawing SS would raise you annual income, which would negatively impact your subsidy amount.
What about taxes? I retired at 62 on a pension. I pay tax on my pension and also on my social security. An average of $800 a month.
Taxes are something important to consider
I would like to take benefits at 65 in 6 months. I am also starting a small business. I have been a high earner for 30 years, and always planned to take benefits at 67.
But now that I am almost 65, I would like to start benefits.
Say, my small business earns 80K / year. If I exceed the earnings amount, will the SSA screw it up to take back benefits? And how exactly do they take back the excess earnings ?
No one ever discusses this point.
Appreciate any inputs.
Great Information and Great video ! Thanks
Glad you enjoyed it!
Thank you, very informative. I like u said God bless in d end.
Glad it was helpful!
Everyone’s different and I definitely am going to take it later because that is the only secure income. I will have my million dollars in brokerage accounts can go up and down Social Security will remain constant and if you plan to live over 80 years old, definitely take it later! In the meantime, while I’m not taking Social Security, I am in a zero tax bracket so now I can take money out of my 401(k) without paying taxes on it up to $13,000 and qualify for other things that I would not be able to if I had a verified income Which Social Security is. Think smarter not harder.
Thanks for sharing!
What if? I could take social security and work a part time job. Then I would not even have to touch my savings. My concern is I have a wife 16 years younger than me ( I am 59) and a 15 year old and a ten year old. When , I retire (looking at 62) I will no longer have a life insurance policy and my saving will be all if something happens to me ( currently my saving is 710,000.
That is a big concern to think about!
If you have another source of income take it at 62. ❤️🌵. Great video
Yes! Thank you!
I agree. Later in life, I'd much rather have the peace of mind of a larger portfolio than a few hundred dollars more per month in a Social Security check.
If your still making high income then taking early ss is not beneficial as the tax on it is very high. Taking early only works if you don’t work that is you actually are retired. I agree take it at full retirement age but don’t wait to get an increase in benefits that usually is very bad.
Thanks for commenting!
My retirement age is 66 and 10 months it's all about retiring at 65 do you think it's a good idea to take your 401K money and pay your mortgage off
Depends on your tax situation
The taxes on my property is only about $200 a year
Wow i have 10.000 and will get 910 from ss . Guess i wont retire next year 😪.
For some people the social security can even pay for your bills specialy.if you have a mortgage insurance car maybe for some people but not for some if I take it at 62 I will be a homeless
I come up with $362k not $312k in the 67 example. Start with $550k withdraw $300k over the 7 years which is $250k. Average balance over the 7 years earning 4% interest is $400k or $16k per year times 7 =$112k plus $250k = $362k
Never mind, I didn’t include the 3% per year increase. With that said, the 62 column number is wrong as others have indicated.
Thanks for commenting!
What if you are still working and self-employed?
Great video, thank you!
Glad you liked it!
I bailed out six minutes in. My sister and I are both collecting, she started at 62, I waited until almost 70. She always made more money than me, but my benefit is over $1000. a month higher than hers. And guess whose COLAs are bigger? and guess who paid off his mortgage before retiring? and guess who had 7 more years to pad his nest egg?
You're not comparing apples to apples. Of course if you keep working until 70 and someone else retires at 62 you will have more money. That has nothing to do with this video.
Thanks for watching 6 minutes...
Each person's situation is unique. Glad your's worked out.
But who wants to work until SEVENTY? Time is more valuable than money.
@@rosemarykingpate7832 I was retired for two years and went back to work full time. Retirement was not for me, not yet. I have plenty of time to ride my bike and/or go for a swim before work and I absolutely love my job. I plan on working at least until I'm 74 or 75. I have a coworker in his 80's. I have all the time in the universe.
The calculations you use for cost of living is grossly below what you would need to survive in a big city like Los Angeles or New York, especially for people that rent. A 2bed apartment is over 3k right now and I’m 57. We may need to move to a less expensive state.
Error in second example.
First year-
550,000 - (3575 x 12) = 507,100
507,100 x 1.04 = 527384
Second year
527,000-(3575 x 12) = 484,100
484,100 x 1.04= 503,464
You have 550,527
Thanks Johnny!
Would it make sense to take my Social Security at 62 if my wife is still working and making over 200 K per year. I am nine years older than my wife and I wanted to take my Social Security early but not if they’re going to take a bunch of tax money out of it?
I would say we need some more details or talk to your CPA, but it is a great question!
The problem I see is take it at 62 I get 2000 a month but working I get 60k a year that will cost me about 10k a year in penalties so I cannot take it early and still work my fairly easy job. You see my predicament
I do see it
How much would the taxes be for someone taking their retirement at age 64? My home, vehicles, credit cards, are all paid off.
Taxes are specific to you. I would call us directly because we need more info.
Im taking my ssdi at 59 because of declining health. What am looking at for future thats the question?😮😢😢
Better to take ss early to subsidize your living expenses or save it if you don't need it.
Drew is on the money (no pun intended). Claiming SS depends heavily on your situation. My opinion... today, most people will have to work until at least 65 and unfortunately will have to wait to collect SS, because the limit on wages is $22K. For those who have enough to retire, they will have more options.
Thanks for watching!
I used to be the guy who thought I’d take SS at 67 or 70. However, I plan to move overseas and delay getting married and having a kid until I’m at retired. In my case, it makes perfect sense to start taking it at 62. I’ll live like a king overseas even taking SS earlier on. My future wife will be 30-40 years years younger than me. I’d like to see my child reach at least 21 before I’m old and dead.
I would imagine your kid would like to have you around longer? Or maybe not....😅
Are you my brother, Greg????😂
WoW you remind me of my ex husband.
Problem is, your child will likely be disabled due to your old sperm...😢
Biggest question I have, is that Andre Dawson in that picture behind you? Looks like a Cubbie. Hard to tell, could be Sosa, but I'm hoping it's the Hawk!
Not the Hawk, but Ryne Sandberg. Loved Sosa and the Hawk!
Thank you
You're welcome
No guarantees on SSI after this election. Take the $ ASAP!!! Tomorrow is not guaranteed!!!
True
Something isn't right with that math. Under taking ss early at 62, investment return at 4% = $22,000 before considering declining balance and withdrawals at $3,575 = $42,900 before inflation, and the investment balance increases slightly after 2 years???
What about taking it at 62 and reinvesting it in real estate rental properties?