When Is The Best Time To Start Collecting Social Security? - Dave Ramsey Rant
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- เผยแพร่เมื่อ 14 พ.ค. 2019
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With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio.
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
very true, I started investing before the pandemic and that same year I pulled a profit of about $600k with no prior investing experience, basically all I was doing was seeking guidance to make a from a financial-advisorr, you can be passively involved with the aid of a professional.
Please can you leave the info of your investment advisor here? I’m in dire need for one.
Aileen Gertrude Tippy
That’s my licesed Financial advisor you can easily look her up, Thank me later!
Thanks, I merely looked her up on Google and was highly impressed by her credentials; I got in touch with her because I need all the help I can get. I just set up phone call.
It took my ss immediately at 62. Since I lived a very debt free life, I'm actually banking most of my ss. I don't have anything fancy, but I never needed anything fancy. If I want something, I buy it. After listening to Dave and Clark Howard for many years, I learned to live on less than the average man. I'm so happy I did!
contentment is next to Godliness
@John Dunn for you, maybe, for me, not at all. You do you, you dont know me. If you wrote that just to be cruel, then I guess you succeeded.
@@wendywatkins628 I don't know them but I don't think they meant to insult. You seem content with your life and it seems they were paraphrasing the New Testament where Paul said godliness plus contentment is great gain.
👍👍👍❤❤❤
@@billvigus3719 I bet the intention was good, but in general, people shouldn't blithely quote the Bible or make assumptions about religious belief to a total stranger.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
Indeed! With the help of a skilled coach, my investments transformed from $321k to over $750k, largely through stocks, ETFs, and bonds. I expect housing prices to remain steady until more homes become available.
@@ThomasChai05 That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
I'm guided by “Camille Alicia Garcia” an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me.
Thanks, I just googled Camille and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
I'm collecting at 62. Over 40 years of working is enough. I want to enjoy what years I have left. You have no idea when you are going to die. Of course they want you to wait so they pay out nothing.
Yep, I've had friends die while still working, so they never got the chance to enjoy the fruits of their lifelong labor aside from a few vacation weeks a year. I don't want to be one of them! Fortunately I'm in the position to pull the trigger and retire at age 52 and plan to do so in the next few weeks! Extra bonus: having greatly enjoyed WFH for the past 14 months I'll never have to return to the office!
Planning to start collecting SS at age 62 as soon as I'm eligible. We all know what they say about a bird in the hand...
My husband was holidng out until 70. He died with no sign of illness or injury one night in his sleep. He was 69 years old. So you are right, you just don’t know. But I’d still go with the probabilities and your own feeling for your health. Too many people grow old on a fixed income during a time of inflation, and suddenly they are at the poverty line. SS is not fixed income, but it is fairly well agreed upon that COLAs do not raise equitably with inflation.
@@OurBelovedBungo what are you doing for healthcare? Are you wealthy enough to just pay premiums in cash?
@@penguin12902 I'll being paying for COBRA for the first 18 months ($1500/month, this is already accounted for as a line item in my budget), then switching to an individual ACA marketplace plan. I should be able to manage my taxable income in order to qualify for a subsidy, but I can also afford the unsubsidized premium if the subsidies go away.
@@OurBelovedBungo nice. I'm only 40 but I'm trying to find a way to not work all the way to 65.
I’m retiring at 60, collecting at 62. I don’t need a calculator to figure that out or a graft. I am sick and tired of working. Make sure your home is paid off and you have no credit card debt and understand the Importance of living within your means...have a budget.
I am glad for you that you can retire at 60. I am 66 with no retirement in site and I am okay with that. I get my first Soc Sec check in a couple of weeks. Gratitude! Best wishes to you.
What are you doing for health insurance ?
@@mediaboyz9848 probably obamacare or Medicaid I would think. You can have 401ks and still get medicaid at least in California.
@@mediaboyz9848 Exactly. Due to the gap In when you can get Medicare, I plan to keep working at least till 65, so makes sense to delay taking SS till at least then.
I have lived well within my means but I've run into murphy's law way too many times and have come out behind the curve. I love to save too.
My dad passed away when he was 61. I contacted a SSA agent to find out if there were any benefits he was entitled to after contributing over 40 years into the system. If you watched this video you already know what his answer was to me. That's worse than a negative 4% return. That's a negative 100% return.
A total scam and a total disrepect to your dad. He deserved much better.
Social security was designed as insurance not an investment.
@@adventistlondon We are better off when we negotiate our own insurance policy as opposed to having a government policy forced on us. One size fits all isn't working when it comes to the SS Program.
My Dad died at 61. It didn't work for him.
@@adventistlondon So if it's a government mandated insurance then it should be challenged. The ACA insurance mandate was considered constitutionally unlawful. But since SS is a national tax then I would not call it an insurance policy. It's an entitlement.
@@douglasthompson9070 I'm sorry to hear about your father.
Social security IS a compulsory insurance program. No one is "entitled" to benefits as Congress can change or abolish it at will. The payroll deduction to pay for it was specifically designed to give it an aire of an entitlement so as to make it nearly impossible to get rid of. Crying shame really as it's a horrible "investment" that lulls people into a false sense of security. My mother is living through this problem now.... at 80 with almost no nest egg.
As a disabled veteran, I took it early. I don't need it, so the monthly check is usually donated to charity.
jvolstad Invest in Cds
@@janethockey9070 cds are to listen to music not to make money. Mutual funds stocks make money.
You must be close or at 100%.
U must be rich .
would be nice to donate a check at 70 and beyond. Will be much bigger!
I started taking my benefits at 62. The reason I did that is because my best friend waited till a later age (not 70) and passed just after he started receiving the benefits. It's a krap shoot when it comes to mortality. I've worked with people who seemed like in perfect health and passed in their 40s. Enjoy life while you can!
Are you worried about lying in a grave and regretting not taking your social security?
@@edhughes6854 no and no. I'll be silt in the ocean when that time comes and am presently spending every cent of my social security checks.
I am taking at 66 and so glad I waited. I need all the passive income I can get. If I take it at 62, I will get 30% less for the rest of my life. I know people who are now in their 80s and they regret taking Social Security at age 62 because they are struggling financially and can really use the extra money. Best wishes no matter what. I get my first S.S. check in January. Yay!
If your friend was married, then him having waited longer will benefit his surviving spouse for the rest of her life (assuming he had a higher Social Security benefit than she did).
@@susanmarie2231 those ppl didn’t have a Roth IRA?
Take it at 62! You b happier to leave that job.! Instead of being miserable at a job
You hate .
I took my early, I am glad I did . I work since young age right out of school. Put kids through college. By the time you get to 61 or 62 .... you deserve to enjoy some of your life. You never know when ur gone. I enjoy time with my grandchildren, my children , our Sunday lunches at my home and my Time on my patio with my beautiful 🌳 , birds of different colors and types that come through my yard , and my time meditation, to just sit feel the cool breeze across my face , to know that I work hard all my life , have great children and grandchildren, and can just enjoy my life . I earn it . I also took care of my bothers and sisters while mom and dad work when I was 12. So I am glad to be retired.
@@deborahfarooq3492
That's exactly what I want! I envy you Deborah😊
I'm happy for u😊
I've known several people who worked hard all their lives and suddenly died unexpectedly before collecting a dime. It makes me sick!
@CJ DUNROVIN Their kids could get
They’re dead. Why are you worrying about them?
@@calebgaddi1428 "The dead only know one thing; it is better to be alive." Private Joker, USMC
It's too bad we cannot assign someone else to collect for us if due before collecting
@@baxakk7374 Only if they're under a certain age. I think it's 18.
I retired from the union trades at 57, with good investment I lived very well. Enjoyed myself and took social security as a supplement to my income at 62. If your young save a portion of income and your future will be bright!!
You have had a blessed life. Many of us ruined our futures by chaining ourselves to the wrong partners, and having our earnings and savings taken away by all the vultures in the legal system that aid those takers. Then there are those of us broke because we can’t bring ourselves to stop supporting our failed grownup children. At the end of all our years of working, we are failures.
@@andread8251 sorry for the choices you made. But it isn't too late. Keep your chin up and start saving. Wait until 70 to collect SS.
Russell, would you like to get married?☺️
@@gosman949 jay you’re nuts. U must be a congressman? Take the money now and invest it in equities. Anything is better than SSA
@@andread8251 Not to mention all the taxes that we have paid, and that morons keep voting through, especially here in California. They are taxing us out of our home state.
A couple of points: I know several people who, if they never had to pay social security taxes, would have spent all that money when they got it, and would not have saved any of it, and in the end would not have anything at all to show for it. People who saved some in 401k's, but not enough, and would be in really terrible shape if they did not have social security.
Also I know several people retired from the same industry that I am retired from (farm service) who retired and took social security at age sixty two, who then a couple of years later. found that they had to go back to work as a seasonal temp to make ends meet.
That is why I worked to my full retirement age, which not only maximized my social security but also added several more years of contributions and earnings to my 401k before I started taking distributions. My wife and I retired together and have much more disposable income in retirement than we had when we were working. If I had retired at age 62 that would not be the case. In my opinion talking about how much you will collect in your lifetime is in the theoretical world and is irrelevant. What is relevant and important is how much money you have every month for the rest of your life however long or short that may be.
you don’t count the freedom and experiences someone had during those four or five years from 62 to full retirement age. While you worked for those four years they were out living life and not waiting for more arthritis to set in.
Flatfifties -- you just described me. If I had taken it at 62 I would have saved little or nothing. I waited to 70 and therefore have enough saved now to pay off my forever home mortgage and a bigger SS payout to my spouse when I pass. I salute anyone who can retire at 62-65.
"Full retirement age". If 62 is that, then do it, there is no penalty.
Ss is not supposed to be lived on. It’s supposed to be supplemental. Your friends are not prepared for retirement
i am taking it at 62...my break even point will be at roughly 79.....what people forget having extra money by waiting until 67 or 70 does not mean much if you are in your 80s or 90s because at that point you can not do much...i am taking it at 62 while i am still mobile and traveling around the world and kicking ass...
I will consider social security as a bonus but I will certainly not want to rely on it 🤷♂️👎
Chris Invests that’s not what this video is about. That’s an entirely separate debate.
Index funds chris
Chris Invests - Personal Finance Videos
Play money for me.
Mark Mirabella calm down dude
Same here.It's pocket money!
THANK YOU FOR ADDRESSING THIS!!!
DR-You need to put this out there as: FOR ANYONE THAT WILL INVEST ALL YOUR SS BECAUSE YOU HAVE MONEY SET ASIDE (Passive Income, etc.) FOR RETIREMENT, TAKE THE MONEY AS SOON AS YOU CAN!!!
Inflation makes the dollar you get later worth less than the dollar you get today. Also, better health now may also make the dollar you get today worth more than a dollar you get when you can no longer physically enjoy it...
excellent point about the health. I've known people who had mlns in old age but couldn't do anything with it other than pay for hip operations that they could have got on the nhs for free.
I waited until 70 and glad I did. Life dealt me a layoff and pension cut and small savings to make up and I finally have. I have a good job now, saving more in 401k and am in good health. I'm very thankful for what I have.
you are working?
@@MB-gd6beI retired at 71.
@@MB-gd6be Exactly. My Captain is bragging about working at 70.
@@MB-gd6beBravo Well Done.
Haha. Love it. The only problem is that 80% of people wouldn't invest the extra money, but buy three more 75 inch TVs instead. 😀
Boat and RV dealerships feel it best to take SS early :)
Agreed. Many people in society have no personal/financial discipline, so we continue to keep this crappy government program around to protect them, since they have the mentality of children.
Hahahahah
That’s exactly what I was going to write. My ex wife for example doesn’t have a 401k or anything else. I have a pension and my 401k and will get SS. I’m no investment whiz but saw that I needed to save for the future and was surprised by how quickly the future arrived!
i am taking it at 62...my break even point will be at roughly 79.....what people forget having extra money by waiting until 67 or 70 does not mean much if you are in your 80s or 90s because at that point you can not do much...i am taking it at 62 while i am still mobile and traveling around the world and kicking ass...
Social Security doesn’t just pay retirement benefits. It also pays disability benefits. You’d be amazed at what qualifies as a disability. No wonder the system is bankrupt.
I know a guy who claimed he was injured by an enzyme in milk...was on disability for decades. No evidence whatsoever this guy was disabled in any way.
Karl von Eschenhof My neighbor is on SS disability and even gets extra because he is “blind.” HE DRIVES EVERY DAY!!
Do you decry the cancer survivor who can not work because of the treatments and has racked their body and the lives that depend on him?
@@sgt.grinch3299 who is saying that. This is the second sour comment I caught from you. No one is decrying that, they are decrying the fraudulent use of SS. I have a neighbor who laughs and says her kid gets social security, he never worked, neither did they, but he has heart issues. She says of course they'll take it, its not her fault for the stupid laws. And she is right! And it is a stupid law.
@@hollyb6885 Or the so called disabled couple that we saw go out of the SS building. He tucked the crutches under his arm and walked to the car and she snapped off her neck brace and pitched it into the back seat.This was seven years ago. The scheme is alive and well!
Dave...you're wrong. Social Security is one of the best things in life for seniors entering their darkest days of their life.
Thank God for social security.
For some people...no matter how much money they made in their lifetime...they are not savers...
So without social security, they would have nothing in their greatest time of need.
Thank God for Social Security.
We had our entire working lives to save. SS should be abolished.
Why do you thank God?
it is thank FDR
@@DrSchor Right. A Democrat, not God.
"They are not savers." That's not a condition, it is a choice....you reap what you sow.
I'm taking my social security as soon as it's offered. You don't know when you're going to die honestly, so I think it's wiser to take it ASAP. Don't count on it as your sole basis of income though, but definitely get it!
Yes! Agree!
Also agree!
Honestly, take it at 62, no one knows how long we are going to live, also your health comes into play as well. Enjoy your early retirement while you can. I heard of people die from heart attacks right after retiring after there 70's. Its not always about the money. Enjoy your life while you can. God bless
Agree. While you still have your health.
@Randall Johnson Met those clowns! They are the ones who use terms like "my" job. Most are pompous jerks who hate on the younger workers and create unneeded drama, and the boss is scared to death to fire them. I do not shed a tear when they pass.
@Randall Johnson retire early but wait until 70 to draw SS!
@@justinacase2623 what are you talking about? We are talking about SS. You are too young to know about it!
WISDOM
something that wasn’t mentioned is if you draw Social Security and you’re still working you are limited to the amount of money you can make. 21,240 a year is the cap this year & if you go over that amount, they start taking money back so it would be pointless
Yes. My wife retired at 62 and got bored, so she took a part time job that blossomed into a full time job. She made over the limit and the next year several months of SS payments were recouped until her account balanced out. If you plan to retire before your full retirement age, make sure you run the numbers correctly.
The 1st yr you retire make as much as you can. Not counted.
It only makes sense to take it early if you don't need the larger amount later to pay the bills. Eventually you will not want to work to supplement the lower amount taken at 62.
Something that is not being taken into consideration is if you are still working your SS income is taxable so you really don't get "all of it" to invest. This income will also likely be in a higher tax bracket too. Just something to consider.
and 50% penalty for every dollar over the earnings limit.
@@johnambro1590isn’t that if you haven’t reach full retirement age of 66 years 4 months?
Yes, it is before FRA, but that is what Dave is advocating. 50% reduction in SS benefit over 20k plus you are taxed on the SS you receive Working and collecting SS is a bad idea. @@SummerLove217
I just hate the fact that nobody replies very fast on TH-cam… Will someone pleeeease answer summerloves question???above👆🏻👆🏻
@@marydeveraux3074 No. It applies to everyone at any age. Social Security is "Income" so when you take social security and make more that $34K per year, it (your social security) is taxable. The tax rate depends on how much income you make / and how much you taxable money you spend in a year. Google it or go to Social Security gov website.
I'm retired, aged 57, and I'm taking it at 62. I can either invest it or, live on it and keep more of my nest egg invested. Either way, it becomes part of my estate instead of SS not paying me or anyone else back what I have paid in.
If you start at 62, you will collect more years than if you wait till 68, The diff in the amount for me was not that much to make me wait till 68, so i started at 65.
foolish. If you have time, take it back and wait until 70.
I’ve said that since I was 18 I’m now 76 and self employed, I would have been a multi millionaire !!!!!!!!
Taking it at 62....it's "play money" for me anyway. I've invested with the assumption it won't be around when I'm 62....
I took it at 65, I had parents who one made 80 and the other made 90, but since my older brothers only made 61 and 72 so I decided not to wait till I was 67, I had Medicare so I'm enjoying myself
Take Social Security at 62 years old and enjoy life while you're still young and healthy enough to do things. You won't need the extra money when you're sitting in a chair in your 80s full of arthritis watching television
Valid point
Yep . I would get $650 /month at 62
Exactly
It's a tiny benefit at 62. If that has any impact on your quality of life or enjoyment at 62 then you prepared for retirement poorly. But I understand what you mean.
The thing is some people wont make enough money to live on if they take it at 62.
You brought up a Great point!!! Invest the money💰collect early.
Social Security was never intended to be an "investment", but rather Insurance.
FDR called it whatever he needed to in order to sell it.
I agree with those that take the money and run at age 62, especially if they have little to no debt!
I was going to wait until age 70 but because I am claiming on my ex-spouse’s Social Security I will not get yearly annual increases past my full retirement age which is 66. I start Social Security at 66 in January and I am so glad I waited!
AMEN, BROTHER! Very well said.
My mindset has always been I'll never get a dime of the money we've put into it so draw it as soon as we can and whatever we get is a bonus. Then my wife turned 62 and I actually ran the numbers. Her full amount if we wait until she's 66 1/2 is about $2400 per month. She's going to work until then. With her income, the reduction in benefits, and taxation of the benefit, we would only net about $400 per month. We'll get more in the first year at full retirement age than we'll net over the 4 1/2 years if she takes it early. My conclusion is for most people drawing Social Security at age 62 only makes sense if you are not working full-time.
seems to me, should have mentioned the income limits before FRA
Yes - start taking SS when you have actually retired because of the FRA.
Fascinating. If you know you will never get a dime of the money you have put into it how are you getting anything out of it at all? From where is the money coming from if you are sure you will get nothing from it at all?
@@DrSchor Please re-read what I posted. I did not say I knew, I said my mindset was that I would never see a dime. As in, my planning and approach to retirement was based upon receiving $0 from social security. I would never place myself in the situation of relying upon politicians for my retirement income.
i am taking it at 62...my break even point will be at roughly 79.....what people forget having extra money by waiting until 67 or 70 does not mean much if you are in your 80s or 90s because at that point you can not do much...i am taking it at 62 while i am still mobile and traveling around the world and kicking ass...
Take it at 62 because you have no idea if you will even make 63. Waiting until "THEY" say you should, most will be going to medical bills and doctor visits and that will be life for most. Take it while you still have some fun life to live.
It's different for everyone. It's not a "One Size Fits All" situation. People with health conditions probably want the early retirement so they can travel or do things they enjoy before their conditions make that impossible. I have been diagnosed with heart disease. I feel fine, and I see a doctor. The vast majority of my family members died in their 70s. I may or may not take it at 62, but I sure won't wait until full retirement age just to get more money. That would be foolish given my family history and personal diagnosis.
I took it at 62 ..i needed the money ..life is short..i want to enjoy my life while I can still function ..but now I have to win the lottery lol
Marie Jones Hi Marie
I feel squeezed out of the job market now that I'm 65 ..i don't think I want to deliver pizza lol
@christopher hennessey that was a joke ..lol
@@mariejones7136 so how are you holding up? Started pizza delivery yet?
@@baxakk7374 no Im not delivering pizza lol..
I agree, Dave. It's a disaster. What do we do about it? I,by myself, cannot do anything, to change it.
Social Security is for funding everyone, including non working spouses, disabled, handicap. We forget it is a social safety net, not our retirement.
Exactly - it is a benefit for the 50M plus who save nothing- not for the 1%ers like Ramsay. Don’t like it, Dave? Donate it
Some Workers lost money with their 401k, others don't make enough to save. Not everyone earned a Pension. Others had health problems.
@@dennistyler8746 I don't know anyone who has a pension. I thought those where done away with years ago.
SS was originally for retirement. It turned into everything else later.
@@lexusls4305 that's the problem, the 50M who choose to save nothing because they are told and buy into the belief it's going to supply their needs. Give me my money back, I'll do a better job securing my financial future than uncle sam.. my future is my responsibility, no one else's.
I decided today to die when I’m 83, so hope all goes well and my math will work!
Priceless. I too have an age I need to leave. God Bless.
😆
Not. E, I will live forever, at least that’s the plan. I see no upside to dying. 😂
I remember doing some type of health survey that concluded I would live until I'm 83...now I can't get that figure out of my brain.😑
My grandmother said she was going to die at 93 when she couldn’t drive any longer. She drove until she was 92 and died at 93, we all wore smiles at her funeral. ❤️
Our morning light in the financial darkness! :)
My husband and I feel we have a 50/50 chance of a past 80 life. We are retired, home is paid for, and absolutely no debt We are both 59. We lost my mom at 64 and his dad at 62. Our other parents lived into their 80’s. We don’t need SS at 62 but we are considering taking it at 62 and investing it, as Dave suggests, in a mutual fund that will grow and be there when we may need or want it later.
If you are already retired, there is no reason not to file at 62. Get that income stream flowing and like you said, invest it.
If that is your philosophy, since you dont need the ss money now, and are not going to spend it anyway, why not wait untill 70 when you will get the largest check possible for as long as you live for when you may need it or want it later?
@@DrSchor Schor, didn't you listen to what he said in the video?
@@DrSchor It will take most people 12 years to break even if you take it at 70 as opposed to taking it at 62.
@@jmb-cm7mr, will be more if you start investing at 62. Maybe you are looking at 20 years....
I retired from my job at 56 with a lump-sum pension. I started collecting my SS at 66. One of the best financial moves for me. I spent over $350K from my portfolio before I collected SS. My portfolio made up more than the difference I spent in those ten years.
I took SS at 62. No regrets.
A very important rule that people who are considering taking social security before full retirement age is the maximum income you can earn before they start taking it back. In 2019 that max is $17,640.00 for people age 62. The amount penalized is one half of every dollar earned. In 2019 if a person earned over 52,920 he would have to pay back all of his SS earnings for 2019. You would find this out when you filed your 2019 income taxes. You would also lose 7% of your SS for the rest of your life even though you did not get to keep any of your first year payments.
Gary Porter thank you for your insight. I did not know the devil was involved in this Ponzi scheme.
Notably, your check is not reduced based on income once you reach your full retirement age...only before (basically 62 - 66 1/2).
Your SS check is never "reduced". It starts out small, and gets bigger the longer you wait.
@@earlysda Not true. If you continue to earn money before your full retirement age (in my case 67), your retirement benefits are reduced during those years to the extent your earnings exceed the minimum allowed earnings. This is why I am waiting until 67 because I earn way more than the minimum and I would basically be getting very little SS from 62-66.
@@jimihendrix8535 jim, thank you for the clarification. My statement was based on the assumption that the person had no other income, but you are correct if you do.
I think it is great that you say what you mean and mean what you say, not many people are like that!
don't forget the salary cap when taking it early. full age = no salary limits.
I'm taking at 62 WITH NO REGRETS!
One thing I've learned about life is that it's unpredictable. If I live to see 62, I will request mine immediately.
Kinda hard to regret something you haven’t done yet.
Caller says he’s 61yo and keeps getting letters from ss. I’m 61 haven’t heard a peep from anyone.
I claimed at 62.Doing research and discovering that by virtue of my having a minor child ,I would receive an additional benefit totaling half my max at FRA.Knowing that info made the decision a no brainer.
Quoting my accountant. "Take it at 62. It's the worst investment you ever made." Me " I didn't invest! I was extorted from!"
That part🎯
extorted yes.. OUCH!
You paid into it, whether you had the opt out option or not. It’s an annuity.
@@Erginartesia not an annuity ughhhh..don't sign a Form W-4 or pay self-employment quarteries ur not paying into it !!!
I would fire your accountant!
I am taking it at 62.
Me to!
Me too
Always learning something new from Dave!
Love this one , play it every time I need a laugh, even though it is so true
they say the only people who should take the money at 62 are people who are in good shape as far as money and use the extra money for play time like travel etc....
I started SS benefits at 62, in 2018, not working with a small Military pension and it allowed me to get out of debt, purchase a new 2020 Ford Edge for $37,700 that is now paid off. In Dec 2024 I will have $25,700 in my 5.25% savings account and will be able to add my SS benefit every month to the balance, life is great.
i been severly disable due to diabetic secondary problems i am very glad to have it is NOT a disaster
Except if you put the same money in an investment you would have much more . Also realize your employer has to match that amount. It is a disaster from an investment standpoint. In your case you most likely have disability and do get assistance more than you have put in. We are a generous society . But unfortunately it comes at a heavy cost to others.
@@johnwalters878 Ohhhh, thanks for explaining why Dave called it a disaster.
Social Security is NOT an investment. It is for SECURITY in old age. But nobody minds supporting the military-industrial complex, or tax cuts for the uber-rich. I've seen my 401K take some terrifying dips and I am glad to have the SS to back it up, in case I lose it all.
I’ve been saying the same thing, Dave. You can keep the 35 years that I paid into SS, just stop taking out the tax for the next 10 years. I’ll come out ahead.
Not true, everyone that lives long enough to get SS benefits for 6 to 10 years get all their FICA taxes paid back and then they continue to get SS checks the rest of their lives.
If u wait til your 70 to take it and die a month later WHAT WAS THE POINT AND ADVANTAGE OF WAITING!
My wife replaced a lady who worked until 70, didn’t have to financially as they had money, she died within the year of a brain tumor, what was the point!!
Exactly, unless your family tree has mostly centenarians in it, every year is precious.
Forgot to tell the guy that he will most likely have to find a lower paying job at 62 if he takes SS because you are limited on how much you can make if you take it early.
There is no law however that keeps you from making as much as you want or can, regardless of age
@@davidwarnke5990 If your earnings are over $12,000 per year, and you are taking SS, your SS will be penalised as in you get a reduced amount compared to if you were not working.
@@TR4zest understood, but the point is you can still earn as much as you Want To or not, and take the SS penalty hit. Eyes wide open. Good reply thank you.
@@TR4zest it's more like $18,000 plus you don't lose money. Anything over the threshold you have to pay back half but you get it back at full retirement.
@@bosstime2010 When I spoke with the SS Office in my state, I was told that I was limited to earning just under $1,100 per month. The reason they look at it every month is that if you earn more than the threshold you are penalized the next month. I cannot remember the exact penalty, but it is pretty harsh. It's not like they are taking your money from you, they just keep it your SS account. The feds want to keep you in the work force as long as they can, so they are not paying anything out of your SS account , but rather still collecting SS on every dime you make. Also, by increasing how much you will be payed each year you are not on SS, they're, feds are banking that you will die before the "break even" point. The other thing with the "how much you can earn" stops at full retirement. You are then able to earn as much as you want without penalty.
My Dad took benefits at 62. I remember he had money until the 10th of the month every month then he was broke and waiting for his next check to come. This was the way it was for my Dad all the way until he died at 83 years old. And the same thing happened with my wife's grandmother. She had money for the first 10 days of the month...then she was broke and waiting 3 weeks for her next check to come...every month until she died at 87.
Government exists to take money from those who work, save for their future, and plan ahead, and give it to those who are too lazy to work, spend money as soon as they get it, and never plan for their future.
When my father retired and started drawing his SS, they reduced his SS benefit because if his pension under the WEP. When he objected, the lady at SS literally told him on the phone, "Somebody has to pay for people who don't want to work."
Couldn't have said it any better
@@kotro88 Bullshhite, no such thing happened
So who are the lazy people who get paid out of SS but didn't pay in?
What a load.
Everyone we know who waited (we are mostly age 75 now) are happy with the choice.
Those friends and relatives who began at 62 now all regret it.
Dying early is not the risk, living to older than age 90 with less income is the problem.
No one's guaranteed of living longer or even long enough to collect their social security that is not a given
@@terryhill4732 He didn't say it was a given, he said it was a risk. Every financial decision you make carries risk. With respect to Social Security, for most the greater risk is filing too early and locking in a lower benefit, and then living longer on a lower income.
@@antipsychosoup6709 life is a risk that's just something we face everyday and have to be willing to live with the consequences of our decisions
@@terryhill4732 That's right, and that's why the earlier you file for Social Security benefits the better prepared you have to be for the consequences of having a lower income.
His point is if you already better off to be ok with the SS money to take it at 62 is a better choice. For People count on SS to get by is safer to go with 67.
I'm 67 and recently retired. If I start collecting SS now, my monthly check will be $3,760. If I wait until 70 it will be $4,719. Collecting now would be foolish
Just make sure you live past 70
@@allinoneto8659 Live past 70? What does living past 70 have to do with this decision?
@@edrodgers4581 Well, if you happen to wait until your 70 to collect, then at age 69 and 364 days just happen to pass...you collect nothing. That 135,000+ you got from age 67 to 70 could have been reinvested and then passed onto your wife/kids (or even church or other charity if you are so inclined) and made their lives significantly better.
In 36 months until age 70 you would collect $135,360, it will take you until age 81.7 to get the additional $135,360 @ $959 per month. If you die before then you have a loss. If you live to 86 your life expectancy you will collect $49,484 in additional benefits. A couple of big ifs. If you invested the $135,360 you might of done better.
@@jefferysurratt5650 The $135,360 is pretax so this number needs to be adjusted. There is no investment that will return a guaranteed 8% plus inflation like waiting until 70. Please don't be foolish. Collect at 70.
3:03 when your mom asks what have you eaten!
Thank you Dave. I'm going to file for Social Security benefits now and invest them in mutual funds. I certainly will not do worse than negative five percent!
You might! The stock market fluctuates...sometimes really bad. I know people who have lost $50,000 + in a couple days.
@@davidlambert3892 You don't sustain a loss unless you sell. More often then not when I buy a stock it goes down in price before it goes up! You constantly must monitor the markets, business news and current events, and always be aware of your own sensitivity towards risk. You don't have to do those things for your social security check. So I'm glad I have SS, annuities, pension, stocks, and bonds. Even with those blessings I must remain situationally aware and flexible.
sounds like a plan only if you really have all things considered. tax, tax, tax. your future income after retired. tax deferred, tax free and taxable, how big of the pie for each and how to distribute it that makes good sense in tax... kind of complicated, but any retiree needs to figure it out themselves as a lots of professional financial planners may not tell you the right thing.
Hmmm, considering how 2022 has gone so far I wonder how this has worked out for you. Might be hurting if you needed the money after this years correction. If you have money invested for the long run then you will be fine.
i am taking it at 62...my break even point will be at roughly 79.....what people forget having extra money by waiting until 67 or 70 does not mean much if you are in your 80s or 90s because at that point you can not do much...i am taking it at 62 while i am still mobile and traveling around the world and kicking ass...
I've never received a letter from Social security and I'll be 63 in August. I've been paying in since 12 years old.
Get on the website and check it out
That was really good advice. I never even thought of the aspect of investing all ss benefits from age 62, but it makes total sense. If that can outperform the benefits you would receive at age 65 or age 70, then no point to wait. Especially true if you were to die early. I also agree with Dave on getting out of the program. I'd gladly give you everything I have already contributed to it (20 years) if I could no longer participate in the future. I trust myself to be able to manage my financial affairs. I don't need Uncle Sam to do it for me and shaft me in the process.
If you are still working you will receive nothing so you have nothing to reinvest. There is also capital gains tax to consider. This guy makes it sound simple yet it is not.
There is no penalty, so just start taking it as soon as you can.
Getting out is not all beneficial as in the case of becoming disabled. You would not be eligible for SSI.
This is the first SS discussion I’ve watched where the time-value of money is mentioned. Kudos Dave👍
i am taking it at 62...my break even point will be at roughly 79.....what people forget having extra money by waiting until 67 or 70 does not mean much if you are in your 80s or 90s because at that point you can not do much...i am taking it at 62 while i am still mobile and traveling around the world and kicking ass...
I just had a lovely debate with someone saying social security is better then 401K's, saying most people lose money from their 401K's but will earn much more from what they put in on social security. And after trying to have an honest debate they openly admitted they did not read my counter arguments because I was "blind and did not know anything"
They be broke AF, guaranteed!
My plan, God willing, is to start drawing at 62 and invest 100% of monthly payment until I'm 80. If I wait until 64 or 66 years old and invest a larger payment until 80, I'll still end up with more if I invest as soon as I'm eligible to draw.
You have to calculate (deduct) the taxes that will be due in the SS and the investment income
3:54 - That head nod! lolololol!!!! Dave's the best!
Take the money and run!
Thanks for telling us what we already know
Old people were starving in the street before social security. It's not perfect but it's better than nothing.
It’s bad. Been in a deficit since 2017 and currently… 18 year old kids are getting taxed for 65 year olds retirement.
It’s a debt spiral and I can promise you that not a single kid paying into social security right now will *ever* see social security by the time they retire.
That’s my viewpoint as well. Do I need it? No and I’m not planning on having it when I retire since I’m 34, but it’s there for a reason. I don’t want old people on the streets again.
There are too many people out there that can't save anything, SS does try and save something for them, if not they would have nothing at retirement.
@@jeremybrown1578 sure they will. Have faith in your country or leave it.
I’ve heard all my life that social security will not be there when I’m old enough. I’m just about old enough and it is still there.
If you’re under 65, taking ss and are still working, the government sets how much you can make from income before they start reducing your benefits.
Not if it is a side hustle for cash they don't!
That is right Ramsey never mention that.
For 2021 it is $18,960 ($1,580 per month). For every two dollars you make, they reduce your SS by one dollar.
Wait as long as you can! They won't let you make much money 💰 👎
You're right I think it's like $5,000 the max that you make a YEAR once you start receiving it. If you make more then they start messing with you.
@@JesusisKing03 No, it's not $5,000. It's 15,000-16,000 from your employment. Which worked out perfectly for me, because I made around 15,000 annually
from my part-time job. After you reach 66, you can make as much as you want
without it affecting your SS benefit. So even though Dave knocks it...it has helped me tremendously. It not only allows me to keep working part-time rather than full-time--and provided enough extra money for me to get totally out of debt, and and build up a nice emergency fund plus savings. Getting that benefit every month has turned my financial situation completely around.
@@margietucker1719 that's good that it's much more than I thought but it's still very little, I think they shouldn't put any limitations on the amount you can make because at the end of the day it's your money so why should they hand it out to you the way they want to. It's so unfair but I'm glad it worked out for you and has helped you out. The one thing I hate is that once you retire if you get too much ss you don't qualify for free health insurance and I think that's prosperous. No senior citizens or child should have to pay for health insurance as long as they're not millionaires then they should be charged like a 30% rate or something like that other countries do it why can't we do it.
Glad to hear you say this, most just automatically say wait until 70 without much thought. I took mine at 62 for a couple reasons. I have a federal pension. I turned 62 right at the beginning of Covid so my Thrift/IRA was less than stable at the time. Finally, I was working part time at just under the allowable income without a penalty under SSA. Our family income was just a bit under the allowable amount for a Roth so I've been fully funding that for several years, I retired at 54. My traditional IRA has done quite well since then so I think i made the right decision. Travel is our goal why we are able.
the people who take it at 70 are the thinkers. why don't you join us
@@DrSchor Waiting until 70 only works if you live past 82 for most people, life is a crap shoot. From age 62 to 70 I will collect $140,000 in SS benefits, if you die before age 70 you get nothing. Everyone situation is different. If I had waited until age 70 I would not be debt free at age 68 and have $25,000 in my 5.25% savings account at the end of this year. Also, would not have been able to purchase a New 2020 Ford Edge and paid it off in just 44 months. By age 70 I will have $4 5,000 in savings, not possible without SS income. My father waited until age 65 to get SS benefits and died in a car accident 11 months later. So, by not getting reduced SS benefits at age 62 he saved SS $30,600, that he could of left my mother.
I took my SS at 62 , the wild card is your health , so if your in decent shape enjoy yourself , its later than you think . My wife and I worked and saved , everything we own is paid off , we did our traveling while we could , now my wife is having some health problems that limit her abilities , we stay close to home and that's OK our children and grandchildren are close and we can enjoy their company .
According to the SSA the life expectancy of a 65 year old today is 20 years. It is crazy not to wait until 70 to collect SS. Don't be stupid.
According to the SSA, it makes no difference if you wait or not. Don't be stupid by thinking there is some way to game the system.
@@DrSchor "Game the system"? Please explain.
@@edrodgers4581 Do the math, if you start SS benefits at 62 like I did you get 52 months of SS checks before full retirement age = $66,976. If I waited until FRA it would take me until age 80 to get the additional $66,976 in SS benefits. No one knows how long before the dirt nap, that is why more low income people take it early. They need the money and cannot afford to wait.
I have an easy job, easy side gigs, and all four of my grandparents lived to be about 90. So why would I not wait until I'm 70. Between Social Security and my 401k and some passive income I'll be making 50k to 60k a year without working at all.
Calling Social Security "robbery" is just stupid. It's the best thing going. You're just full of libertarian BS.
Now here is a prudent man/woman? Please use a name that is gender based!
I've been following Dave for many years but this may be the first time that I have agreed with him.
why do you follow someone you dont agree with
@@DrSchor All information has value IF you know how to use it. (i should have totally agreed with him)
@@lzgbe.1961 Fascinating. Seems like a clever trick. How do you use information you don't agree with? Thanks.
@@DrSchor I don't!
I'm taking mine early, government is screwing me out of what I put in to begin with.
However, if you die before full age, you would not have gotten a penny back.
I’m going to take mine ASAP, nobody knows how long you will live.
Exactly right
That is precisely why I am taking it at 66. If I live to a ripe old age I will need as much passive income as I can get. If I die early, it won’t matter. If I take it at 62, I will get 30% less for the rest of my life. I can’t afford that. I am betting to have a long life while others are betting the other way. We must each do what is in our own best interest.
@H J Everyone needs to do what is in their own best interest. I know people who took it at 62 and they are now in their 80s and they regret not waiting because they get 30% less for the rest of their life. Some of us are paying our living expenses with Soc Sec so we must get the bigger check by waiting. I do not understand people who insist everyone should take it at age 62 instead of saying “do what is best for your own personal life.” Yes, statistically the majority of people take it at 62 (57%) and that works out just fine if you plan on not living a long life. Also, for those who do not need Social Security to live on and they are strictly investing the money and it is no hardship for them if they lose it all, go with that. Again, it depends on what an individual’s personal financial goals are. My financial goals are to maximize passive income in whatever form that may take and Social Security is a form of passive income. I turn 66 in a couple of days, I get my first SS check next month, and I am so glad I waited because it was the right thing for me to do. Even if I drop dead in a month, no regrets. Glad I waited. Best wishes.
@H J Dave starts out his answer by saying “the longer you live the better it is mathematically to take it later” which is what I did. I will be 66 in a few days and I am so grateful that I waited. It was the right thing for me to do and we must each do what is in our own best financial interest. Also, Dave does not discuss the fact that if you take it early you pay a lot more income tax if you are still working (earning over a certain amount.) People need to check that out too.
@@susanmarie2231 Yes X100!!
my brother-in-laws Sister fell a month ago and hit her head on concrete. 3 weeks in a Coma and then she died. She was 59. not one penny of Social Security for her. Right on Dave...it depends on when you think you will die.
I am so sorry to hear of this tragedy. May all the family and friends of this dear woman be comforted through their grief. Peace to you and all those in her circle of loved ones.
What Dave Ramsey should explain is social security is there for the main reason that a large percentage of people are foolish with money and live paycheck to paycheck so the system is there for these people to at least be able to have a monthly check when they retire as they have never invested anything and have no savings
right....youd think since he deals with those people every day he would realize the wisdom of the program. its essentially forced retirement
What people don’t understand is ss is not enough to live on. It’s supplemental
A large percentage of low income workers do not have anything to save. I never made more than $35,000 per year during my work years, my average was just $12,000 per year from 1971 to 2006. You do the math, I never missed a meal, learned to work on my own cars, did my own plumbing, electrical, HVAC, and basic home repairs. I still do my oil changes at 68, even though I could afford to pay someone.
I like how Ramsey just told people they can outperform the difference between the benefit at 62 versus 65, yet people still defend their decision to wait till 65. Nobody's saying you're stupid, he's just giving you the facts. I plan on using it to pay my property taxes, insurance & utilities and still plan on working part time.
thats stupid. you are giving up a larger check for the rest of your life. by taking it at 62 you will live long but not prosper
It's 62!!! You don't know the future ..
62. Instead of 67...thats 60 checks between that time
Take it early
One old timer told me "A bird in the hand is worth two in the bush".
I know Dave isn’t a fan of SS but I’m sure he would agree that if no one had to pay into SS that 90% of the people wouldn’t invest it.
And why would that be a problem?
Because someone’s father, mother, grandparents etc would end their working life with no money and the grown children would have no good choice but to either take them in or give them money every month. If you think that’s okay then I guess you have a point.
@@louislopez55 Yes, I think that is ok.
People should prepare for retirement, and should have a network that will help them if they need to.
People should not be forced to pay into a Ponzi scheme, to pay others' retirement, in the hope there will be enough money in the future for them.
@@rafaelcosta3238 Elderly people will live in poverty. The cry will go up "It's a shame for elderly to live in poverty in the richest country in the world". So the USA will create a new welfare system to give money to the impoverished elderly. That new welfare system will be funded with tax taken from you. That is the problem, my friend.
@@DrSchor there is no difference between that new hypothetical system and the one currently in place.
Both require taxes (ss is a tax) to give money to the elderly.
I am in favour of ending social security in the hope it is not brought back from the dead, as oppose to kick the can down the road.
Dave I didn't have a choice in participating in the debacle known as Social Security. LOL!
Taking it sooner!
-- Percentage of seniors (over 65) living in poverty w/ SS: 9%. W/o SS, the % of seniors living in poverty would be 40%.
-- Prior to the enactment of SS (1935), 50% of seniors lived in poverty.
Could it be better administered? Prolly! But I sure don't want to go back to not having it.
That's just it. It's a scam and a ponzi scheme but the most of the populace is so broke that they have to have it (or starve to death).
It should be privatized and 30% (or a sliding scale based off income) put into a general fund for the disabled, really indigent and needy. The other 70% put into private mutual funds you can access when you retire. So it’s still forced savings but it’s invested so it earns interest and it’s tied to the person. Right now it’s not invested so it’s going to be bankrupt. No one is helped if they are promised money that doesn’t exist. I would love to get rid of it entirely but you are right people are stupid and don’t save. Plus there are actual disabled people that need to be taken care of.
Using the Great Depression as a benchmark of success compared to today doesn't really set the bar high.
Go back and read some history. . . . It was set up very different until LBJ decided he was going to create the “great society.” It was its own separate fund until LBJ saw that huge pile of cash that was not in his control to spend. That is when he decided it was time to bring it under the control of the federal government and create welfare. Look it up.
@@paulbunyan1682 Don't tell that false myth about LBJ. He used its figure to fudge the US debt, but the fund was kept separate. He did not take that money to pay for Great Society.
It’s insurance not an investment. It’s not like a 401K
Dave should know that most people are terrible at investing. The Social Security program forces people to save, and it’s often the only thing keeping some people from being homeless when they can’t work anymore.
100% agree with this
Thanks for info.
...because the reason why we lose 4% on what we put in is because we’re paying for ppl who haven’t paid in, ie ssdi collectors who claim unable to work.
Non citizens too?
I understand that in many cases SSDI goes to undeserving individuals but it also goes to those that truly need the help. My 26 year old son had a head-on auto collision at 18. He remains in a minimal state of consciousness (a limbo land between awake and in a coma.) His only work experience had been summer jobs in high school. We care for him at home. My husband will continue to work as long as his body holds out because our son needs premium insurance, not Medicaid. His $700/mo goes toward the numerous items he requires that insurance doesn't cover. So it does also provide a support net for our most vulnerable.
I think you gotta remember is that 50% of all seniors when social security was implemented lived below the poverty line. It has always been a pay it forward mentality. It was just not managed well in the 80s when it should have been changed.
right on
That and the retirement age was set at 65 due to using misunderstood statistics but the idea was most would die before collecting much. Now we have people living +25 years beyond that and fewer people paying in.
When it was implemented, it was for widows and orphans.
i am taking it at 62...my break even point will be at roughly 79.....what people forget having extra money by waiting until 67 or 70 does not mean much if you are in your 80s or 90s because at that point you can not do much...i am taking it at 62 while i am still mobile and traveling around the world and kicking ass...
Great Rant from Dave, and it confirmed for me that I made the right decision. I'm still working but I decided to take it at my FRA, which was 66. I don't need it, so I'm socking it away. I'm looking at investing.
From age 62 until age 66 ( your full retirement age) you will receive 100% of nothing.
You do you, but do you really want to work until you are dead? Isn't there some place you want to go, something else you want to do? Have you ever waded across the head of the Mississippi River? Parted during Mardi Gras in New Orleans? Watched bears eat salmon in Alaska? Seen the Taj Mahal? Visited Dracula's castle in Romania? The Eiffel Tower? The pyramids? Lobster rolls in Maine? Key lime piein Key West?
@@damondiehl5637 I'm doing all those things...working, putting social security away, and traveling. I've been to Mardi Gras , Alaska (not to see bears), Hawaii, Italy, and visited a number of states here in the great USA. My job is easy, but when I want to get away, I get away. 😀
@@damondiehl5637 It is so sad that you have not found a purpose in life that is so fulling to perform that you must distract yourself with cheap tourist traps to make your life endurable.
Thank you!