Social Security: Top 5 Most Common Reasons To Take Benefits Early
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- Опубликовано: 11 сен 2024
- There are about eight or nine common reasons that we hear of for why you want to take Social Security early. We decided to focus on examining the top five of those claims by looking at various analyses of different age and life expectancies, income levels, spending goals, and asset base to try and understand what could go right or wrong.
01:15 A Few Base Assumptions
02:13 Reason Number 1
03:10 Reason Number 2
08:33 Reason Number 3
12:03 Reason Number 4
19:49 Reason Number 5
20:36 Is Social Security Going Away?
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Disclaimer:
This video discusses fixed-income investing and utilizes the 10-year U.S. treasury as a general representative fixed-income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed-income assets. Other types of fixed-income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.
#retirementplanning #socialsecurity #earlyretirement
I really enjoy your video's, you make a lot of good points. But, one of the things ALL you financial guru's leave out is the fact if you retire At age 62, Then you must find your own health care coverage. For most people that entails going on Obamacare. All the rates for health insurance through Obamacare our income related. The more money you make the more your insurance will cost you. These are real costs you must pay them, no one wants to go uninsured but it is never in your formulas as money that needs to be spent. So from age 62 to 65 you will have health care premium costs coming out of your pocket. If you have a spouse it gets even harder because if they make any income it is included as total income which affects your Obamacare premium. In my research average policies can range about $600 a month that's $7200 a year I think this needs to get factored into the money that you need to live on for those years not taking Social Security. And that doesn't include any money you will put out if you happen to get sick during those three years. My plan would be to use cash for three years and then at age 65 apply for Social Security and go on Medicare and let the chips fall where they may.
Hi Wayne! First of all, thank you for watching, we're glad you enjoy! And you bring up really important points and perspective - while we weren't able to cover it in this specific video, we totally agree that you can't make any accurate recommendations for anyone unless you consider the full picture, including healthcare needs! We also believe there's a huge gap in the retirement financial planning industry in that regard as well - That's why we have Step 4 of our Retirement Success Plan, which is all dedicated to coming up with a financial plan for healthcare that makes sense for each unique person we plan for. We have several videos where we touch on that aspect of retirement planning and how it changes our recommendations, if you want to check them out! If you need help finding some of them, feel free to reach out to us! We'd love to help.
I have a good health care option if I retire before 65 but yeah, it's still a big cost factor to consider.
One additional good reason to take SS @62, albeit not overly common, is if you have a younger child or a disabled adult child, is that they can received up to 50% of your full PIA amount, as well as if your spouse is not working they might qualify for Child in Care benefits, again up to 50% of your full PIA amount. There are family maximums that normally max out at about 175% of your PIA, but it could still be that your family might be able to receive approximately 75% of your full PIA amount in addition to your decreased @62 benefit of 70%.
More money doesnt fix your health. Money wont make you happy. If your in good mental state take the money. In your 80's you lose your mind and body... so what will money do? In their 80's money was the least of my parents concerns.
Thanks for watching and sharing your perspective, @rjb7260!
I am taking at 62 - using Govt monetizes instead of my investments. My heirs can inherit my investments and not my social security.
Thanks for watching and sharing your strategy with us, @silverfox6856! If you ever need help with retirement planning, we're here.
One must become debt free, at any cost, prior to hitting retirement and tapping into your retirement and later your SSA benefits. Holding off SSA as long as necessary. If you have debt into retirement, that is nothing but trouble and headaches.
The non-working spousal benefit really complicates things, especially if they are older and longevity is problematic.
@ItsEverythingElse Thanks for watching and sharing your thoughts!
My wife and I have a specific future scenario starting in 2026, which is when we plan to start social security. Our total projected income needs will be 90K annually. Projected social security for me and my wife should be close to 60K annually, so the remainder of 30K will be drawn from traditional IRA(20K) and a Roth IRA(10K). So in our calculation of provisional income, half of SS(30K) + traditional IRA(20K), or 50K, should leave us nearly zero in federal income taxes, given that standard deductions will continue to increase by 2026. Thoughts?
Great information and comparisons, only thing I wish you may have touched on, what if the said person was also receiving a private company pension of about 3 grand a month, right out of the gate?
Hey @freedomwillring6749! We've had a few requests to cover a case study that involves a pension, so we have it on our list to try and do an upcoming youtube video on it soon. Thank you for watching and making this suggestion!
Thanks, I'll be looking forwards to see that.
Another great one. Alas, I think your fees are too high to become a customer.
Hi @swright5690! We're glad you enjoy our videos! We're also sorry to hear that - if you ever change your mind we'd love to help.
Good information. At least where to start the conversations.
Hey there @Tex-val! We're so glad you enjoyed. And yes - definitely just the starting point for topics like these! If you ever want to talk about your own situation, we're here.
I enjoy your videos very much, however
taking your social security at 62 if you can afford it makes the most sense.
Enjoying the money while your young and vibrant is what life is all about.
The break even age means nothing. In this example at 78….5 more years of life you are old
and who cares if I have more of a monthly benefit?? I’m dying in 5 years…I can’t use the money for fun.
Hi Steve! Thanks so much for watching, we're happy you enjoy our videos! And also, thanks for sharing your perspective - I think it's different for everyone how they want to spend their money, and the point is that there are options! We make these videos to give visibility into all the different possibilities out there, and to make a case for each one because it might be the best option for someone out there.
In reality the government is hoping that most of us die before we reach 70 yrs old so they don't need to pay us
Not enough attention is paid to reduction if you're still working. That changes the equation more than anything.
Good point. Thank you for your comment!
Your age is 40
You take your social security at 65.
Age 65, social security is 800,000
or just estimation.
Social Security(25 Year)=800,000
Loan1(25 Year)=800,000
Loan1=? Yield=5% Year=25
Loan1=800,000/1.05^25
Loan1=236,000=100%
Payout(25 Year)=5,000,000
{
Loan1(25 Year)=800,000(Settle)
Loan2(25 Year)=800,000(New)
Loan3(25 Year)=800,000(New)
Income(25 Year)=2,600,000
}
Insurance:
Payout(25 Year)=5,000,000
Premium=? Yield=18% Year=25
Premium=5,000,000/1.18^25
Premium=80,000(Cash=156,000)
{
Loan=236,000=100%
}
Thank you.
No discussion on expenses varying with age and enjoying your younger retirement go-go years. Not a realistic discussion, all theoretical. There are much better retirement discussions on RUclips than this.
Hey there @PH-md8xp, thanks for watching and weighing in. There's definitely so much nuance when it comes to retirement planning. We try to keep these videos at a certain length so it's hard to talk about it all, and this was just one aspect we chose to focus on for this video! We have a whole playlist dedicated to different aspects to consider with social security that you can browse through, and we've also done videos specifically on the go-go years and how that influences what we recommend to our clients because you're right - it's important! We hope you check them out.
to me the 400-lb gorilla in the room is what happens when the social security trust fund goes bust in 2033 and there's risk of reduced benefit to the tune of 75 cents on the dollar. By taking social security asap you get that many more years of 100% benefit before 2033, and I think in any comprehensive analysis that needs to be addressed.
Vote for Trump so SS is still around.