3 things you must know about taking Social Security Early -- Are you making a mistake?

What is the right time to take social security is a big decision with huge consequences. I found 3 factors overlooked by many when making this decision. Can I retire now. Retirement planning.
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_*PLEASE STOP USING Spreadsheets!_ It falls way short optimizing every retirement factor*
Retirement Tool Link I reference and highly recommend -- New Retirement. Free 2 week trial. $120/yr after. You will buy this after trying (I have purchased for 3 years).

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Need a CFP to create your retirement plan for a one time fee? My Recommendation: Neil Fortwendel [phone]. Neil created my plan. Plan updates as you wish for a smaller fee. Check Neil out on Facebook and LinkedIn.
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RECOMMENDED FINANCIAL ADVISOR - Assets under Management or one time plan creation
Neil Fortwendel with Northwestern Mutual ph: 812 471 2492

Video by Lean Driven Reliability LLC
This is not investment advice. For entertainment ONLY. Seek professional help to understand your unique situation.
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#retirement #retirementplanning #retireearly #retireearlyandtravel #financialfreedom #financialindependence #retirementincome #retirementstrategy #findingpurpose #keto #ketodiet #ketovore #hiit #hiitworkout #healthylifestyle #howmuchcanIspend

[joekuhnlovesretirement]

*_PLEASE STOP USING Spreadsheets!_** It falls way short optimizing every retirement factor*
Retirement Tool Link I reference and highly recommend -- New Retirement. Free 2 week trial. $120/yr after. You will buy this after trying (I have purchased for 3 years).


Need a CFP to create your retirement plan for a one time fee? My Recommendation: Neil Fortwendel [phone]. Neil created my plan. Plan updates as you wish for a smaller fee. Check Neil out on Facebook and LinkedIn.


*DO NOT GO IT
*Money Pickle - FREE! use link to set up a FREE 45 minute dialog with a Financial Advisor*
No obligation. Get answers to your questions. Get an expert to look at your plan.


*Plant Manager, Maintenance Manager and Career Consulting -- 1 hour virtual via Teams/Cell Phone*

Most Popular VIDEOS

RECOMMENDED FINANCIAL ADVISOR - Assets under Management or one time plan creation
Neil Fortwendel with Northwestern Mutual ph: 812 471 2492

Video by Lean Driven Reliability LLC
This is not investment advice. For entertainment ONLY. Seek professional help to understand your unique situation.

#retirement #retirementplanning #retireearly #retireearlyandtravel #financialfreedom #financialindependence #retirementincome #retirementstrategy #findingpurpose #keto #ketodiet #ketovore #hiit #hiitworkout #healthylifestyle #howmuchcanIspend

[topofmindwithterri]

Without a spouse, and my father dying at age 69, I'm taking it at 62 and enjoying as many years as I can not working.

[suzycreamcheese]

I retired early in 2020 at 59. My best friend retired 6 months before me at 60. She took SS at 62 and I decided to wait until FRA as my husband continued to work and is still working today at 66 (he could have retired but enjoys his job). My friend and her husband traveled internationally often. She turned 65 in November, diagnosed with cancer in January and we buried her in April. I am going to take SS at my next birthday, my husband reaches his FRA in 5 months and will retire at the end of this year. We have 100% probability of success financially but an unknown probability of being here to enjoy it.

[thomasberry]

I retired at 56 and continue to look at various ss scenarios. The more I study it, the more I start to question if this should really be a math problem to solve. I think for some people the regular paycheck beginning at 62 may help them get over the confidence to spend issue in the same way that buckets are used. After all, a larger check in the slow go and no go years won't do much good. I'm likely to take it year by year, see how my investments are performing, and evaluate the impacts the extra money might have on my go go spending. Assuming I'm still going in my 60's.

[hwardick]

It may make financial sense to defer taking SS early, but it also makes financial sense to work one more year, not take an annuity, or not paying off a low interest mortgage. Sometimes it is better to optimize your life and not your bank account. So do what brings you peace of mind.

SS is not really an investment, and your kids can’t inherit it. And if you are in poor health, it may not even make financial sense to defer taking SS.

[BillMaass]

I retired at 56. Originally expected to claim SS @ 62. Due largely to valuable retirement videos like Joe’s, I have learned more about SS and Roth Conversions. Plans changed. Now 65, I won’t claim until 70. Wife 6 years younger than me with her own benefit that should be about 55% of my PIA. So, she gets no Spousal benefit. She will claim at 62 when I am 68. I will be on Medicare while she gets ACA tax credits. Majority of Roth Conversions done before she turns 62. Under current rules, none of our SS benefits should be taxed. My increased SS benefit from delaying will be available for whichever of us survives the other. At least that is our current plan…always subject to change pending new developments.

[sarahsunsetpark]

Joe, thanks for sharing your retirement journey. I’m 61 and newly retired and love to check in with your videos to see what you’ve done. And learn what I can.

[BillMaass]

I see advisers talk about 3 buckets/account types to withdraw retirement income from…1-Taxable Brokerage/Savings, 2-Tax Deferred 401k/Trad IRA, 3-Tax Free Roth Accounts. We really should add number 4-Social Security. Some seem to assume delaying #4-SS to allow it to grow means one is living on less money early in retirement. Actually, it just means the retiree is withdrawing more from the first 3 buckets. The retiree is simply choosing which funds to use to cover their expenses. Effective retirement planning seeks to withdraw from each bucket at the appropriate time in order to reduce one of the largest risks (income taxes) that we face as retirees.

[jploehn]

Another great conversational video about Social Security, Joe. You convinced me to take mine at 70 due to the numbers you wrote on a white board in an earlier video about Social Security. Those numbers dramatically showed the 7-8% growth + COLA year over year that one will get by delaying Social Security as long as possible. I recommend your subscribers check that video out for more detail on what you discuss in this video. THANK YOU for doing what you are doing Joe, the conversational style, and sharing your experiences!! Joe from Texas.

[ph]

Completely in agreement with you on this. Yes, there are people and circumstances that need to take SS @ 62, it's an individual case. But never (in my opinion) would I think to take it at 62 just because I can, or don't just the government, etc. After I rolled everything over to Fidelity in 2019, they said and initially factored in, that I could take SS @ 62, I was like, "Well, that's nice, but I'm not doing that." The earliest I would take it is at FRA (67) and that's if conditions worsened, i.e. health, economy falls off the cliff...But I plan on waiting until 70, as I've always thought that line of "longetivity insurance" as well. I have no spouses/dependents, but that's also another and better, reason to delay. And so what if I pass away early, before SS, before 70, or before the "breakeven point?" I that happens, I'm not going to miss it! LOL.

[BadPhD]

Thank you Joe for a video to get people to think about their situation and make an informed decision! If you see a video that says "everyone should take SS at [insert age here]" - that person should be ignored!!

[youngtimer]

Retired at 60. Pension is more than enough to cover all expenses so let SS ride until FRA. As long as it didn’t affect what we wanted to do from 62 to 66, it made sense to postpone.

[hardcor]

I totally agree with you on delaying Social Security until 70. Many people have assets to use now to cover expenses in retirement without the need for social security. It will be interesting to see how much more our checks will be in ten years. The tax savings will be significant too!

[jacobnelson]

One issue I have is the break even point happens in or close to the "no go years". At that point spending falls dramatically barring major medical issues. If ss at 62 and fixed incomes covers expenses no reason not to take it early and let the portfolio grow that can be left to heirs.

[martybabitz]

Great video, Joe. Thanks for the helpful and important clarification that upon one spouse’s death only the higher of their two Social Security benefits continues; which does militate in favor of deferring benefits to age 70 to mitigate the impact of the “widow trap”

[TedWesterfield]

I’m retiring next month at 67, but am holding off until 70 before applying for SS. Not only is there an 8% GUARANTEED bump each year, but there’s also a COLA on top of that. That’s about 10% annual COMPOUNDED growth.
Also, delaying allows more time to drawn down 401k and convert to Roth, thereby leaving a lower 401k balance when RMDs are required.
Finally, waiting for SS until 70 allows the benefit to grow and it will ultimately make up a larger proportion of my overall annual retirement income. Since only 85% of SS benefits are subject to tax, a larger percentage of my overall income will be taxed more favorably than ordinary income.

[NargleThornberry]

Your life is the risk by delaying SS. I’m aiming to have plenty in my nest egg as Roth and spend down my pretax via Rule of 55/72T in my early 50s to mitigate RMD risk. Take SS maybe a year after 62. By that point I’ll be poor on paper but rich in Roth. My elders barely make it to their late 70s and that’s the break even point for SS in most cases. Live your life!

[joethecomputerguy]

I'd rather have the money now (at 62) then not have it at all. No one knows how long they are going to live for sure. My plan works with me taking it at 62 so I will be taking it as 62, if I am still alive.

[mynewjourney]

Health insurance is my barrier for retiring early. Working on that plan.

[jimroberts]

I plan to retire at 62 (this Dec) and take SS at 70. Since when does the market guarantee a positive return? Agree with you, Joe...take the definite ~%8 return over 8 years.