As someone who's spent their life working in healthcare, I'll take my social security at 62 and enjoy however many healthy years are left available to me. If needed and/or absolutely necessary, I'll supplement my income with the additional 21k per year SocialSecurity allows us to earn without penalty. I don't plan to have any debt whatsoever at that time, however, so I doubt it will be necessary. Everyone makes their own decision, but every decision has consequences. I've never had a patient tell me they wish they'd worked longer. Instead, they tell me all the time they wish they had retired earlier to focus on living and enjoying life while still healthy enough to do so.
@raddiemutto7934
Жыл бұрын
What do people do for health insurance between 62 and 65 which is when Medicare kicks in? Seems expensive to buy health insurance on the open markets for those 3 years.
@geneofone
Жыл бұрын
@@raddiemutto7934 you can go through the ACA affordable care act and get medical coverage. If you keep your taxable income low you’ll get a good credit which makes it affordable.
@bradk7653
Жыл бұрын
@Raddie Mutto If you control your income in those early retirement years, you can make ACA coverage be almost free, and actually much less that what Medicare will cost you once you turn 65. Too many people think Medicare is free, but expect to spend $500-600 per month, per person, once you are on Medicare because of the B premiums, Advantage or Gap coverage, and co-pays and such.
@PhilippeOrlando
Жыл бұрын
"I've never had a patient tell me they wish they'd worked longer" This truly tells me that the work culture in the US is BS. People's identity is built on their work here, people go the extra length to make you believe they just luuuuvvv their job, they're so happy at it, blah, blah blah. It's all BS. Americans are as miserable as the French are on the work place, maybe worse. I move to the US in 1990, from France, and trust me, France has horrible problems in its work culture, but the difference with the US is that in France people are very expressive about those problems and there's no stigma telling anybody that work sucks. Here, it's all in the appearances, the show must go on. Yeah, I luvvv my job. Nobody is kidding me here.
@JDAbelRN
Жыл бұрын
I plan to retire at 65, RN in HealthCare, two years early. My knees are totally gone, but I plan to keep my RN license to work once or twice a month. Fortunately, I signed up for the 403b plan and maxed out the contribution limit and best decision I ever made. I tell the other young nurses to contribute as much as possible to 403b to get free money the hospital gives us and to protect your overtime money from excessive united state and state taxes. I'm sure to have enough money until death and leave enough to my heirs and plan to enjoy my retirement with traveling, because my knees have had it. Good luck to everyone on retirement planning and look into investing in 403b and 401k and IRA to supplement retirement income.
@kortyEdna825
Жыл бұрын
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
@a_sea_oasis
7 ай бұрын
💔 🙏 God to give me good health. I will work until I leave my earth planet.
@tbrayden3694
Жыл бұрын
If you do the math comparing the extremes 62 vs 70, you have to live to at least 80 to come out ahead by waiting until 70 to take SS.
@bayoustateoutdoors9650
2 ай бұрын
Yep, and we won’t be doing much in 80s, I’d rather have $ in my early 60s
@graywilliams_77.
Жыл бұрын
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point. I came across an article highlighting individuals who achieved profits of up to $150,000 during challenging market periods. Considering this, I am curious about the best stocks to purchase now or add to a watchlist.
@graywilliams_77.
Жыл бұрын
Thank you for providing this helpful pointer.
@savage22bolt32
Жыл бұрын
@victoriajonas44 NEVER NEVER NEVER trust a financial advisor.
@robertthompson3814
Жыл бұрын
I claimed at 62 and have no regrets. I am able to live on my social security check and watch my retirement accounts continue to grow since I don't need to touch them yet. Also, I do not believe social security is as secure as financial advisors say it is.
@jasonhobbs2405
Жыл бұрын
Good for you!
@wannamontana4130
Жыл бұрын
Certainly an option. However, I would challenge the assumption that the belief that Social Security is not secure, when you just referenced the comparison of growing retirement accounts. That kind of implies that the retirement accounts are more secure than tax payer backed Social Security. Please explain. If you are not implying that, then based on the risk differential mentioned, wouldn't it make sense to spending the riskier assets first? I would be curious what your growing retirement accounts are invested in that is lower risk than the US tax payer.
@jackiebenjamin642
Жыл бұрын
@@wannamontana4130Republican politicians are already talking about how expensive social security is and that some Americans are getting more in benefits than they contributed. Given the deficit and the talk about “entitlement programs” like social security and Medicare, neither of those programs are safe from being cut or eliminated/changed significantly.
@randolphh8005
Жыл бұрын
@@jackiebenjamin642 that may be a risk for future retirees, but not for current. Much more likely that taxes will go up if you have a large portfolio. They might get away with going after “rich” retirees. No way the average Joe or Jane
@philruehlen
Жыл бұрын
Another great video Rob. I am 69 and have not started SS. My wife is 64. She will have my spousal benefit (and most likely outlive me by many years). I will start at 70 and my wife at her FTA. No regrets on my plan!. And BTW, my mom lived to 100 and my dad to 93. Hope I have some of their genes.
@casweeden
Жыл бұрын
Some of their genes? Hell, you might have all of them! :)
@alphamale2363
Жыл бұрын
These studies seem to be geared toward retirees of means. If you can't afford to retire from a job you hate or one that is physically killing you unless you take SS, take it ASAP.
@dancooper6002
4 ай бұрын
No, just geared towards people who are financially responsible.
@anthonynewhouse5695
8 ай бұрын
It isn't always about maximizing the money. In my "take SS at 62" in new retirement it shows me as having millions left at end of life. I don't need more money but more time to do what I want. That should be a factor as well.
@cgmoog
Жыл бұрын
I think everyone looks at this wrong. They look at maximizes benefits. This requires trying to estimate when you are going to die. I look at as an insurance question - how do I minimize my risk (not maximizing benefits) of running out of money. If there is no way, or low risk that I and/or my spouse will run out of money before reaching age 82 than I should wait until 70. If I die at 69 having never collected yes I lost money but its money I won't need (I'm dead).
@alphamale2363
Жыл бұрын
Maybe a person wants to leave a lot of money to their kids. You can't pass on a SS benefit to your kids.
@70qq
Жыл бұрын
@@alphamale2363 BINGO ...we can live on my age 62 SS alone...so my wife's SS , which is 30% lower , is just extra cheese on the Whopper anyway...save my investments for the wife and/or kids ...if you cant pass SS on to your kids and your spouse will lose their own to get yours (so they arent really gaining that much) , i see no benefit ...and if i die early at age 62-70 , my wife still gets my SS (higher than hers) and she has our investments still growing and untouched...she can spend what she wants from investments or leave for the kids .....meanwhile , enjoy life being retired eight years earlier and get back what you paid in or at least try your best....my old boss just tried the wait until 70 for SS plan to get more...he died in december , less than 4 months before his 70th bday and is not married ...never collected a dime of the huge amount he paid in
@johngiesbers9811
Жыл бұрын
Yes. It 8s an. Insurance policy. Risk/benefit
@Bob-xt2on
Жыл бұрын
Bottom line you need the money when you’re younger having the mailman drop off a big check in the mailbox when you are in bed at 80 years old and can’t get up doesn’t help
@greganixter7352
Жыл бұрын
Most important to me was to choose to wait as long as possible for max benefit. That way, my wife will get the highest benefit if I pass away
@bradk7653
Жыл бұрын
Rob, thanks for your videos. I have have not used Maxifi (because I am too cheap to pay for it), but have used Mike Piper’s OpenSocialSecurity extensively, and I am very impressed with Mike’s work. OpenSocialSecurity also allows you specify your specific expected death age by overriding the Mortality Tables (override options at top). One other option I appreciate with OpenSocialSecurity is that it allows you to specify the age (year and month) you and your spouse want to take SS and it calc’s your benefits to compare to the calculated optimal dates.
@allanc2827
Жыл бұрын
Life expectancy in u.s. has decreased 2.7 years from 2019 to 2021. Countries with same covid rates decreased by .2 years. We are a sick country. Simple equation. If you live to 82 or higher, you'll come out ahead if you retire at 62.
@markb1697
Жыл бұрын
I am surprised that Rob did not mention that built-in cost of living annual adjustments with Social Security. He mentioned that pension or annuity income might cause one to not need the higher SS income from waiting, but many of these do not have inflation adjustments. So looking 20-30 years down the road, Social Security might be your only income source that will keep growing -- guaranteed -- after your investments are all used up.
@EdNelson
Жыл бұрын
He did early in the video
@meibing4912
Жыл бұрын
This is really important when choosing early SS or not.
@funnlivinit
Жыл бұрын
I’ve made a spreadsheet about this topic calculating my lifetime dollar value benefit. IE: How much in actual dollars will SSA pay me. Bottom line, if you live to 82 or later, waiting until age 70 will always pay you the maximum benefit. No need to look at living to 100.
@JohnJohn-wr1jo
Жыл бұрын
Everyone is different with different scenarios, incomes, genetics, and needs. There really is no right or wrong answer to this question. What I discovered as I got close to retirement 5 years ago was what little good advice was available for SS and choosing insurance options. Definitely more now with platforms like this but entirely too much generic information from SS, employers, and other sources that I tried tapping into.
@RetNavyChiefBTC
Жыл бұрын
There are right or wrong answers. They are just not the same for everyone. The decision needs to be made based on your individual circumstances.
@seetheforestthroughthetrees
Жыл бұрын
Generic software can't replace custom planning. You are spot on. Every situation is different and following generic recommendations can result in suboptimal outcomes. IMO the best course of action is to look at your overall situation and what SS would be used for. How much of your retirement income would it be? The larger the portion, the more conservative you want to be with your strategy.
@pensacola321
Жыл бұрын
Is it the end of the world if a few bucks are left on the table?. Do what is best for you and then forget about it. Nobody maximizes every penny, anyway..
@gg80108
Жыл бұрын
Its free money at 62 1/2. You die before taking any you lose, you die before the breakeven 8yrs you lose. Fed decides yo means test you lose. Take the money early, put it in an annuity. At FRA you can have a joint lifetime benefit that will be more than waiting till FRA. Also your heirs might get something.
@claireo5562
11 ай бұрын
What annuity did you invest in? Hubby and I are looking into SS at 62.
@gg80108
11 ай бұрын
@@claireo5562 you have to eat a lot of free dinners so your not sold anything. Eat em up for about at least a year . With interest rates rising, I would just wait about a year or so. An 8% 30 year bond is better than a 8% annuity payout.
@uaeio
Жыл бұрын
There is additional consideration, that almost nobody brings up: when you reach full retirement age, SS already calculates how much money you will receive till you die at your expected age (see age expectancy by SS). If you prolong your retirement age, the sum the SS designated already for you, is divided by the amount of time left till your age expectancy, to calculate your monthly benefit. This, the amount you will get till your age of expectancy is exactly the same. Of course, if you work, you get additional salary till that age too. However, for me for example , my expectancy age is 87, I didn’t t see any sense to work after I have reached my full retirement age, since I also saved sufficiently not to worry about financially. If you live beyond your expectancy age, then delaying retirement makes sense. Good luck with that.
@priola7587
Жыл бұрын
I hear you, but my advisor wants me to go to 70 for the best tax result.
@TheDjcarter1966
Жыл бұрын
The only way to know 💯 what the right plan is means knowing when you will die...since nobody knows, if you are not working get it at 62, if you are working and enjoy it and want to keep working dont claim. There are lifestyle issues...if you have reached 90 and have a lot more money what exactly are you going to do at 90. Why not actually live life to its fullest at 62-75 when you can actually enjoy it
@allenkoz
Жыл бұрын
Rob did another video that looked at taking SS immediately at age 62 and reinvesting it. The results were compelling and might provide another viable option if you aren't in need of the $ right away.
@meibing4912
Жыл бұрын
Important consideration. However, few people invest aggressively after they retire. Having a solid SS will allow many to take on a lot higher risk for their investments and thus much better returns overall. This also needs to be calculated - and then deferring SS will often be a big win. Of course you can pretend you will 100% in stocks with all your savings regardless, but that's very far from the average reality. Having a solid annuity as back-up is my own strategy and will allow me to continue to be 100% in stocks throughout retirement. 1/3 annuities, 1/3 fixed property and 1/3 stocks. YMMV.
@kensmith2796
Жыл бұрын
From my experience seeing friends and family retire, people have a tendency to underestimate how long they will live. When they are young, they can't imagine being 30. When they are 30, they can't imagine being 65, etc. I've known quite a few people who took soc sec at 62 thinking they would die young like their parents. Here they are decades later still alive and wishing they waited to draw their soc security.
@jeffb.2469
Жыл бұрын
And then there are the others. I worked with a bunch of guys who retired before me, but never made it to 75. I don't know if they started SS right away or delayed taking it, I've just read too many obits.
@seetheforestthroughthetrees
Жыл бұрын
The key really is, are you trying to reduce suboptimal retirement outcomes or are you trying to get what the government owes you before you die? Those are two different strategies. The #1 fear most of my clients have is running out of money because they live too long. Using social security as a tool to address that fear is much different from the "I paid into this system my entire life, I am getting mine ASAP because I have no idea how long I'll live". Two different approaches and both can be optimal depending on your situation and goals.
@philip5899
Жыл бұрын
It’s the same amount of money! You take it early and enjoy longer. You take it later and have less time to enjoy. Our end date is pre-determined, no guessing necessary 😂
@markb1697
Жыл бұрын
Your statement presumes that you die at exactly your actuarial age. But what if you live longer? and what if inflation stays high? And do you have a younger, lower-earning spouse who will get to keep your higher benefit after you die? It's not that cut-and-dry.
@pickinbuster
Жыл бұрын
My family lives long- so I expect to live to 90. So, just doing the math on Social Security by itself, I should wait until age 70 to take it. However, that only assumes maximizing the Social Security returns. It does not take into account the rest of my retirement plan. If I retire earlier and have to spend down my savings for a few years before I take Social Security, I may actually be worse off at 90. Spending down my savings early in retirement to avoid taking Social Security looks like early sequence of returns losses to my portfolio. Even if the math to maximize Social Security returns says I should wait, it may not be the best idea for my overall plan. Thoughts?
@khoasterful
Жыл бұрын
Great video. One scenario I thought of that no one talks about. 1) Consider the following inputs and assumptions: - Husband and wife are both working. Hence, there will be 2 Social Security benefits. - Assumptions: Husband life expectancy, 86. Wife: 95 - Both husband and wife do not need SS benefits until at least FRA Question: What happens if 1 or both takes SSA early and invest it. Say annual APY is 5% (between 4-6%) or better. Would that be a good hedge against unexpected early demise of 1 spouse? There will be a lump sum for surviving spouse or heirs (should both spouse demise together). Any thoughts?
@iJohnRambo
Жыл бұрын
I used to wonder the same thing, but I’ve come to this conclusion. I will very likely not need the money, and therefore I would collect as early as possible and invest it. It may end up being a fund for the grandkids, or to a charity. It wouldn’t make a significant change in my life but it could make a huge difference for others.
@larryseibold4287
Жыл бұрын
I wonder that as well. What is a good tool to model the scenarios, focusing on future value (say at 92) of one person (i assume that a good tool can later add a spouse)? There are lots of similar scenarios, but being able to adjust the parametric variables independently will be very informative. 1) Retired at 62, start withdrawing at 62 but re-investing at 10% vs waiting until 72 (again investing at 10%). what does the value look like from 72 to 92? 2) how do the numbers change as the years change? 3) how do the numbers change as the investment compound growth changes? 4) Continuing to work past 62, but begin withdrawing. How do the numbers look in this case? [note: job / wages are very uncertain past the age of 60 (in high tech at least), so that is not a given].
@antillie7
Жыл бұрын
I'm still a ways out but I don't plan to claim until I am done with all my roth conversions.
@bradbortner2601
Жыл бұрын
My situation is a bit different, in that my wife works for the state, so can’t claim. Instead she gets a pension. That means my Calc is straight forward around “how long do I think I’ll live?” Fun! I did speak with a friend of mine who is now a retired undertaker, who retired at 62. When I asked him why, he said “ I’ve buried a lot of people at 65.” Zikes.
@CaptainBenjamins
9 ай бұрын
I am claiming at 62 (or earlier if it becomes possibly). I will take the payments and continue to invest them into my index funds. Remember folks a bird in your hand is better than two in the bush. And with the power of compound interest you can have both!
@DrSchor
6 ай бұрын
you can have both what
@CaptainBenjamins
6 ай бұрын
@@DrSchor what I mean by this is, if you take the money at 62, while yes you are getting a smaller payment than if you would have waited at 70, you could invest your social security income in say an s&p500 fund and it would grow to be larger than what the original amount would be at 70. So what I’m saying is take the money now because you may need it, but even if you don’t need it, you could then invest it and make more before you reach 70. It’s a win win, especially if you are not sure how long you will live for.
@randrl4260
Ай бұрын
My parents and aunts and uncles on both sides of the family seem to live (on average) in the mid 80s. However, they worked hard and did not eat the crap we do, so our life span may be a little lower. Also, another consideration is your health declines in the last several years of your life to the point you are unable to travel, visit friends or family, or enjoy physical hobbies. Many old folks stay at home being watched over by family or in a home for years. With this in mind, running the numbers on maximizing profits doesn't work. Like Rob said, you should consider the math, but you should also consider your own personal situation, before making the decision. There is also healthcare insurance and spousal benefits to consider.
@Padoinky
Жыл бұрын
Very much appreciate this logical and concise assessment
@invantix
Жыл бұрын
What if I don’t need the money but I take it early say at 64 and invest it in an index fund or high dividend. Do these programs consider investing the money? Maybe even put it in a Roth or HSA… or I use it and don’t take the equivalent out of retirement accounts.
@wannamontana4130
Жыл бұрын
Rob, ... I usually love your financial planning videos. However, this one generally emphasizes an actuarial or mathematical examination toward statistical averaging of Soc Sec decisions.. This is really mostly applicable to an institution (similar to a pension or annuity company) that gets to calculate based on averages of large groupings of people. Individual election decisions are governed more by their personal situation, ... which only briefly mentioned as an afterthought just before the video is almost over.
@ronron2312
Жыл бұрын
I think the idea is to make an informed decision. Rob has made a series of videos on when to claim SS.
@docwallace3941
Жыл бұрын
Thanks Rob. Excellent post. I always learn something when I watch and rewatch your videos. You are truly one of the best on KZitem in this arena.
@wayneullman5079
Жыл бұрын
It’s a case by case situation. I waited until 70. I collected spousal benefits before that while working. By holding off my benefit grew 8% a year. My thought was I needed as large a benefit could get when I was unable to work because of age. I’m not a saver.
@pinztrek
Жыл бұрын
I find that nearly every popular article or video on this never addresses the "you can earn 8% per year by deferring social security" myth. They almost never factor in time value on money, and completely ignore the break-even point implicit in the social security calculations. When comparing taking at 62 versus 70 for most folks beark even is around age 80 or 81. And that is just the raw difference in the rates, it does not factor in time value of money, tax implications, etc. Modeling this in detail with my complete portfolio resulted in a likely break-even for my wife and I of between age 90-91. Electing to take at a later date you are gambling that you're going to live beyond the social security expected life expectancy for your gender. It's that simple. You don't "make" anything by waiting until you are well past the break-even point, mid '80s or later. Remember 50% of people die before that break-even point. It's implicit in the social security calculations. Factor in the neverending attempts to means test social security or increase the taxes on social security and it adds risk to waiting. Rob, this would be a good area for you to explore and explain in a future video. Calculators are nice but the fundamental concept that there is an actuarial breakeven point that social security uses most people are not aware of.
@Bob-yh7ir
Жыл бұрын
We look at our updated numbers every year in SS site. I am with the turn it on earlier than later folks because most won't live long enough for it to make a difference really. Example. We have run our numbers and if I stop work at 58 and turn on my SS at 65 when I file for medicare at about 13% reduction of benefits. The difference for me filing at 65 vs 67 does not get me more money until I cross 80 years old. If I live another 10 years beyond that, say to 90, I would have pulled down just over 50K more in benefits over those 10 years. 50 K over 10 years is not going to change my or my wifes life. No matter how long we live what little money a year more we would get is not a deal breaker anywhere. Especially since we will have slowed down and expenses over some years will have gone down until they start to tick up again for medical perhaps. If we live long enough. :) Even if I die early, my wife will be just fine getting a slightly reduced surviving spouse benefit going forward along with investment income and all. So knowing those numbers, it's definitely turn it on a little early.
@savage22bolt32
Жыл бұрын
The crux of the problem is, you have to know what age you will be when you die. Unless you're planning your suicide, you won't know, until you know, but then you won't even know, because, you know, you won't be around to know.
@noreenn6976
Жыл бұрын
Thanks for another great video Rob!
@thegadphly3275
Жыл бұрын
at 65 it pays $1500 /mnth. that's $18,000/yr. If I wait to 70, I forego 5 yrs = $90,000. If I wait to 70 to get $2000 a month= $24,000 / yr that's $6000 more /yr -- $90,000/$6000= 15 years to get back the $90,000 I did NOT take... Stupid to wait to take. Get the money as soon as possible. Breaking even at age 85 is not offset by a few percent increase...
@dancooper6002
4 ай бұрын
That is not how the math works. The payouts were originally neutral in an actuarial sense, but due to longer lifespans the waiting to take it is now advantageous.
@fr0103
4 ай бұрын
The question for many of us, is that we worked and paid into SS system beyond 35 years. Myself, being 47 years. If the top 35 years are calculated for SS retirement benefits, what happens to any excess years of contributions? Are those dollars calculated into your benefit or are they permanently lost, becoming an unknowing and enforced donation to the US Treasury Dept?
@metalfatigue
Жыл бұрын
Assuming good health, not complicated at all. Obviously, if you need the money, you claim as soon as possible. Done. But if you can cover living expenses until age 70, why on earth would you accept a smaller payment for the rest of your life? You gamble that you won't die at 68 and you gamble that the politicians won't take Social Security away. But that's a much smaller gamble than the stock market, especially when you're retirement age and don't have time for the market to recover. Besides, if you still want more risk and less security, you can take the Social Security money and buy stocks.
@stevemlejnek7073
Жыл бұрын
Hi Rob. Great content as always. Question for you: what are your thoughts on the "hold harmless" aspect for protecting those who have claimed social security against potentially rising medicare costs? Some suggest this factor is reason to not delay claiming social security beyond age 65. Thanks.
@tedmurr4925
Жыл бұрын
Very insightful video, thank you. Was surprised that factoring in Equity/Bond/commodity/Income products levels weren’t as much of a priority in either of these strategies. I could certainly see a scenario where the broader markets bottom out for multiple years, providing a major opportunity in furthering your cash flow. Regardless, this certainly gives clarity and perspective. Cheers!
@Kimmer
Жыл бұрын
I'm always surprised at how many people leave money on the table and take SS early. In my opinion, it is simply due to ignorance of how investments work and undue fear that it is going away. I'll be waiting until 70 for me with my wife taking it at 67 since the math clearly shows this will maximize returns with the assumption that at least one of us will live into our 80s.
@gg80108
Жыл бұрын
Not really, take the money early, put it on an annuity. At full retirement age you will have more income and maybe more for your heirs in inheritance.
@Kimmer
Жыл бұрын
@@gg80108 Unfortunately, the math doesn't work with this approach. It's doubtful that an annuity would earn more than 8% which would be required to beat waiting to take SS, besides the costs and inflexibility of annuities. No, I will never be taking any annuities.
@jps0117
7 ай бұрын
I could be "leaving money on the table" by delaying. It depends on when I turn to ashes.
@Kimmer
7 ай бұрын
@@jps0117 You are correct. The optimum timing depends on several assumptions like when we will die, rates of return, tax policy, etc.
@gastonville11
Жыл бұрын
Thanks for the video and links. Very much appreciated.
@richmurphy8144
Жыл бұрын
My wife is 5 yrs. younger, but our salaries have been pretty close, and our expected SS payouts are the same. Therefor survivor benefit does not apply in our case. I think I will start when I need to. I am retired for almost 2 years now; she will probably work for another 2 years. I am past FRA already, so I can claim any time, but I see no reason to do so until I see that I am needing to withdraw from portfolio. I may do Roth conversions when wife retires, but I will only have 3-4 years to do it so not sure how much advantage that gives me with RMDs at 73.
@bernardsr2271
Жыл бұрын
Great video Rob, best yet!
@Travlinmo
Жыл бұрын
This is great information to share. Thanks.
@frankofva8803
Жыл бұрын
Excellent information
@maymey
2 ай бұрын
What about Maximize My Social Security? It should be included, or at least mentioned.
@mikephilpot9857
Жыл бұрын
@Rob Berger Great video. One suggestion would be to show how the tools account for other special cases that are more complex. Like for instance, disability and children with disability benefits. The tools will expose claiming strategies of which many people are not aware. Some benefits are not available until one spouse starts claiming. I have a disabled adult son that can only receive benefits when my wife or I start claiming. So, that is a consideration. And in this case when one spouse starts SS and the child begins receiving benefits, the other spouse becomes eligible to claim “child under care” spousal benefits while continuing to delay their own regular retirement benefits. This is when the tools really shine. It would have been pretty easy to decide on what claiming strategy to use if I was single or married with no dependents. But having Open Social Security calculate the value of the strategy for my whole family, including my disabled son, was a godsend and opened my eyes to possibilities of which I was unaware. Maybe you could post a followup video demonstrating some of the special cases to more fully expose the true power of these tools and why we need to consider using them. If I had just guesstimated a strategy without a tool like these, I would have made a drastic mistake that would have severely impacted my finances for the rest of my life. Another suggestion for inclusion in a followup video would be to demonstrate how Open Social Security allows you to input your own custom strategy for comparison against its optimal recommendation. This lets you see how big the difference is between your preferred strategy and the “optimal” one. Then if the difference is not great, you can use your preferred strategy with the assurance that the impact will be low. In my case my wife is older with a PIA very close to my own. Mine is slightly higher; so, we would like to claim hers earlier and defer mine to max the survivor benefit. OSS recommends her delaying and me starting early. The actuarial math shows that strategy to be slightly better, but the difference is only a few thousand dollars over our lifetime. So, we will go with our custom plan that gives us more dollars in our go-go years and only slightly less money in the middle of retirement and more at the very end, and very slightly less over our entire lives. The comparison was invaluable in assuring us that we had the right strategy for our situation and were not just relying on a number with no idea how much “better” it was than our desired strategy.
@bradk7653
Жыл бұрын
We are in the same situation, with a disabled adult child. I will likely take my SS @62 because this will allow my son to begin receiving DAC benefits and my spouse should be able to receive Child in Care benefits. There is a Family Maximum and a Combined Family Maximum that will come into play so they both will not receive the full 50% of my PIA, but even with those maximums it still makes sense for me to claim at 62. When I pass on, my wife will be bumped up to 82.5% of my PIA (even though I would only have been receiving 70%) because of the Widows benefit, and my son will be bumped up to 75% of my PIA. SS is a good thing.
@mikephilpot9857
Жыл бұрын
@@bradk7653 Yeah, great strategy. And Open Social Security was the tool that showed me this strategy. These tools are so valuable. 👍 Nobody should claim Social Security without using tools like these and/or consulting a FA…
@robsteal3887
Жыл бұрын
It's going to take a while to make up for deferring. It's going to take you several years at the deferred higher amount to make up for what you would have if you had taken social security earlier or at the earliest age. And you're assuming you'll live so well off into your 80's or longer.
@steverunswithscissors
Жыл бұрын
No need to wait beyond 62 for me, with a child under 18 able to claim along with my wife on my work record. I would be break even in late 80's if I wait. A small part of my benefit will be invested each month. I also have no debt going into retirement. I would have to keep working if I had debt
@MrWaterbugdesign
Жыл бұрын
I invested in my health. I'm 66. Stopped drinking soda 10 years ago, low carb diet 4.5 years (194 lbs to 160) and very active fixing up my house and walking 2 hour walk per day where I do my food shopping. Yesterday I carried 20 lbs of food 2.5 miles back home mid afternoon here in Phoenix which imo is a great workout. I've had no health issues yet, still don't need glasses. But my time is coming fast. I retired at 45 without a pile of cash. Funded retirement by slow flipping my home. Working on house #4. $250k cap gain is excluded from income tax so that helps. That's also kept my income below $15k so I qualified for Medicaid which has saved me about $8-10k/yr. Also a free smartphone with plan (LifeLine) which saves $500/yr and recently free home internet (ACP) saving me about $700/yr. My total spend has been $600/mo for the past 15 years. Inflation has gone up but there are very few things I buy that have been affected by inflation. Since I walk almost everywhere I only buy about 20 gals of gasoline per year. I turn off the hot water heater in summer and no heating in winter, hang clothes to dry. AC one room. Phoenix is cheap on utilities. I haven't had a need to take SS yet so I haven't. I don't look at SS as "trying to get the most money I can from the evil government" as I hear from many. Today I could get $2799 but no idea what I would spend it on. I like my simple life. At 70 it would be $3620 plus future COLA. I don't invest other than my house so for me the 8%/yr increase waiting plus COLA is a very sweet deal. There's no other investment where I can get that return. But if I took SS today at $2799/mo I'd lose my low income benefits. I'd have to pay for Medicare Part B ( $164.90) and lose $0 copay/deductible. Have to pay for a phone ($30-50( and home internet ($60). So my net would be down to $2534. Plus, and this is by far the biggest issue, I absolutely love the stress free nature of dealing with the companies managing my Medicare, smartphone and internet. For some reason these companies provide way better service than when I was the one paying. It's like bizarro world. I assumed it would be worse, but way, way better. I do have about $5k in expenses coming up to complete my flip and only $14k of cash left, so it's getting close. I may take SS in the next couple months to fund the flip. Than sell in early 2024 and stop SS and repay what I got from the house sale (net $500k). You can do that once, only for the first year. Basically a free loan from SS...another sweet deal. Then I'll be moving to SE Asia. I'm a single man and will be 67-68 then and dating will be great in SE Asia. Maybe find an attract, trim, young easy to live with wife. Even have kids. I have the funds enough for a wife to live well for the rest of her life and the kids be taken care of through college. If I pass before kids are 18 SS will provide 75% to 180% of my full benefit amount until about 18. The benefit goes to my kids so the mom isn't required to be a US citizen. That's a sweet deal knowing my family would be covered by SS plus my assets. My prime reason for moving to SE Asia is the adventure. 2nd reason is long term care. Filipinos especially are work famous for their caring. A live-in housekeeper is $100-200/mo USD plus food. A live-in caregiver (Registered nurse or trained caregiver able to lift my weight) is $500-1000/mo USD. Well within my budget. The option to marry a wife who's 20-30 years old will also be a help.(hopefully). Medical care imo will be much better in SE Asia too. Same high level of care as in the US but more importantly to me is the wait to see even a specialist is a day or two while in the US it can be weeks. Medical in the US is great...when you finally get to see a doctor. I'll be dropping Medicare (free now because of no income...which is another reason I'm not wanting to take SS today).
@teachccd
10 ай бұрын
What about these “future kids” losing their dad at such a young age? It’s not all about money and young girls.
@nealjohnson6369
Жыл бұрын
Always spot on Rob.Thank you
@jmc8076
Жыл бұрын
In Canada it’s much better if you can to wait until min 65 if not 70. Videos on YT for Canadians on this.
@DB-xp9px
3 ай бұрын
so the typical household loses 95k cuz they claim Social Security benefits at age 62....but how much did they lose in market growth by pulling from the investments to delay starting Social Security? this point is almost never addressed in videos. the flaw in these calculators is they assume (apparently) u have a big pile of cash laying around that u won't lose opportunity costs on if u were to use it between age 62-67/70. all that said, i've yet to know anyone that lived long enuf past the breakeven point for their choice of when to start to add up to much.
@johngiesbers9811
Жыл бұрын
The problem I have with retirement income planning software is that there is no way a retiree can look out 15 years and know their income needs, inflation or market returns. Realistically I can lookout a couple of years with any certainty. Will I need a new roof, new air conditioning, or large appliances, maybe an expensive car repair/replacement? Inflation at 10% or 2%? Market doubles or gets cut in half? I can estimate some very basic spending needs a couple years out but that’s it. And I can do that on a 3x5 card. I see people on KZitem showing their retirement spreadsheets with column after column of dates and figures and I think ‘wonder how long til that blows up.’
@jayfram1
Жыл бұрын
I’m 65 and am hoping to retire at 67, but to delay claiming SS I’d need to either find a part time job or draw down my savings to bridge the gap. Still trying to figure that out as I really don’t want to stay in my job past 67 but not sure what kind of part job I might find that would give me a decent income stream for a couple of years.
@theresewheeler1498
Жыл бұрын
I will claim at 70. I am still healthy and enjoying working
@AGrandJourney
5 ай бұрын
If you can afford to postpone collecting your retirement until age 67 (or 70), then you likely don't need your retirment income to fund your retirment lifuestyle. So why not take retirment at 62, and invest 100% of your social security check until age 67 or 70? The extra checks plus investment income will be greater than the total of the larger checks, later on. Of course, this assumes enough willpower not to spend those monthly checks for five or eight years. For us, this is an important factor because my spouse can't collect based on her social security earnings because of the Windfall Elimination Provision, and can't collect based on my social security because of the Government Pension Offset. You certainly come out ahead if you die young, and depending on the investment returns, you at least break even if you live past 81.
@garrysinger9704
Жыл бұрын
Another topic related to Social Security is life insurance. My wife and I are 70 and we both took out policies as income replacement of one of us dies. The spouse will only get the higher amount so how can you make up for the lost income? Self insure?
@bridgecross
Жыл бұрын
Waiting for the "I know of someone who died early so I'm taking SS early" stories.
@jeffb.2469
Жыл бұрын
You don't need to read the comments to read these stories. Just check the obits and see for yourself.
@bridgecross
Жыл бұрын
@@jeffb.2469 obits are no better than anecdotes. In a world where nothing is guaranteed, the only rational course is to follow the statistics.
@jeffb.2469
Жыл бұрын
@@bridgecross I read the online newspaper and check out the obits from the town I used to live and work. I can't believe the number of people I used to work with that never made it to 75. This is real life. At 62, I'm not sure when I'll stop working and/or start drawing SS, but it won't 70.
@jpny4750
Жыл бұрын
Some people may also want to retire outside of the US to countries with sunny climate or just do geoarbitrage. Many countries require proof of specific minimum monthly SS/pension income to grant retirement visa/residency. Mexico now requires above $3k, for example. In that case it would be good to wait until your SS reaches that amount if you are close to it already before FRA. Even if you are not planning to move, it will at least give you the option to do so.
@gg80108
Жыл бұрын
They always think that till they need some major surgery.
@rralphymiller3115
Жыл бұрын
66.2 for me.
@OffGridandOutdoors
3 ай бұрын
Is it just me ... or is Maxifi now Fee Only? I cannot find place to create a trial account
@jaydoraiswami4762
Жыл бұрын
Thank you Rob. I request your thoughts on how to use this analysis if the benefits are invested (saw your other video on this topic, trying to connect that to this analysis).
@mikepiper6077
Жыл бұрын
For the younger people, if your debt free at or near retirement you have more options at 62 , 67 or 70 when to take out SS. If in Debt then you may need the money asap. No choice but 62. No debt and I mean no consumer debt and no mortgage debt or a very low mortgage payment a better way to approach retirement in my humnle opinion. You at least have the option to wait to FRA or older to start S.S. payments. Some start at 62 and bank the money. I would ask can you beat the 8 % present guarantee the government provides after FRA? Some years yes! 2022 neck no . Some portfolio's dropped 1/3 or more. If your a buy and hold then just a yawn and perhaps bought more on sale. If no sleep and worry and you saw others sell and locked in that loss then perhaps reevaluate and learn more now for your future .
@ampiciline
Жыл бұрын
dude , why you are making so hard to understand ? its VERY simple...take it out at ag 65 .....average life expectancy in USA is only 75 .... so , if you take at at 62 you will lose big 30% but at age 65 you only lose 13.4 % ...... 65 is THE sweet spot ...... remember average life expectancy is only 75
@jeffb.2469
Жыл бұрын
I was planning on 65 also, same time I become eligible for Medicare.
@ampiciline
Жыл бұрын
@@jeffb.2469 exactly !
@gg80108
Жыл бұрын
Life expectancy depends on when you were born. But the question is can you afford to be wrong?
@jeffb.2469
Жыл бұрын
@@RickMartinKZitem What is the average life expectancy in the US 2023? April 13, 2023 - U.S. life expectancy has declined to 76.4 years, the shortest it's been in nearly two decades, according to December data from the CDC.Apr 13, 2023
@jps0117
7 ай бұрын
My conclusion also.
@texdevildog9174
Жыл бұрын
In those tools can you put in reported inflation versus actual stolen inflation? Government has an incentive to lie about inflation, reporting it lower than actual.
@frankb1
Жыл бұрын
If I am past my FRA, how can I find my PIA? The Social Security statement doesn't have it.
@howardfriedman7077
Жыл бұрын
You don't have one any longer. Just look at your current and future amounts.
@CindyHolman
Жыл бұрын
Hi Rob - is there a free version of maxifi? I would like to try this or something like it. The open social security results were wanting me to take retirement now (I'm 62) and my husband wait until 70. Problem. We both still work full time as property managers and plan to continue until we sell our home in the Seattle area in maybe a couple of years. I would love to find another website like maxifi to compare with open social security to see what they say when running our numbers. Also - isn't it true that our numbers would change if we are both still working 2 or maybe 3 more years - or longer?
@derkong7114
Жыл бұрын
Easy.... Never until you physically cant work. Work is good for us...
@ChloeBensonBeautyBoxes
Жыл бұрын
If you don’t want to wait until 67, you could even add just a couple of years and claim at 64, 65, 66
@lynneburnham4978
Жыл бұрын
Rob Berger, thank you for your cohesive information. I am very curious whether you have any information/presentation on the reduced Trust Fund benefits beginning in 2034. According to my last SS statement, Social Security will only be able to pay $800 for every $1000 in benefits. I will turn 70 in 2034; if I begin taking SS at 67, will my benefits as well as everyone else who has paid in nearly their entire lives be reduced by 20% beginning in 2034?
@ArthurDentZaphodBeeb
Жыл бұрын
In theory, yes. In practicality, unlikely. Seniors vote. Likely they'll reduce bennies for future retirees, lower COLA adjustments, require slightly higher contributions (last I read, only a few % higher contribution made SS solvent for another ~50 years) and raise cap on earnings subject to SS. I'd give cuts low probability of happening - it's political suicide.
@herculesrockefeller8969
Жыл бұрын
With advances in computing technology, AI, quantum computing, Robotics, and biology, people are going to live longer than they anticipate. I am a firm believer in this it has started already, but is in infancy. Be patient!
@babszollak2512
11 ай бұрын
I think you might state in your video the cost for Maxifi as it does not seem to be a free tool. Also, it would be nice to see an analysis of filing early say at 63 or 64 and then suspending at 67 (full retirement age) and then restarting at 69 or 70. I haven't seen anyone talk about this as an option to take SS for a few years and then suspend and restart. Please consider it.
@part1801
Жыл бұрын
I think if you're working and you're able to work. Then you should keep working and not draw until the last possible year so you get more per month. That seems like a no brainer to me
@gg80108
Жыл бұрын
62 best investment I made. 8 yrs payback, who cares! You ain't getting any younger.
@70qq
Жыл бұрын
👆
@sheltermutts4185
Жыл бұрын
“A bird in the hand is worth two in the bush” Old Proverb If you don’t take the bird in the hand you could possibly get two later. This turns the whole equation into a gambling game where you are missing several key pieces of the puzzle. You may get more! You may get less. You may get NOTHING! Are you feeling lucky?
@ronron2312
Жыл бұрын
If I am died it does not matter.
@ronron2312
Жыл бұрын
You also have to consider the tax benefits of SS.
@brianglas7768
Жыл бұрын
I just wonder what most people in the their late 80s / 90s are spending their money on? I like traveling and envision enjoying those trips far more when I'm 65 than when I'm 85.
@hanwagu9967
Жыл бұрын
more than likely it's on medical costs. There are 5.829million people 85yo and older drawing social security. That is less than 10% of 61milliion claiming oasdi. The $3.5T figure is absolutely ridiculous when compared against actual numbers versus hypothetical numbers. I also would rather spend social security for the 10.5 years to break even of FRA 67yo than worry about the low probability of earning more after that point.
@djscra89
Жыл бұрын
I retired at 53 and I’m waiting until I’m 62 to think about it. If the market and our plan works as it should, we will wait. If something is different, the choice will be made at the time. The idea of 8% growth while we wait seems too good to pass up.
@Stroz92
Жыл бұрын
What if you dont need social security at all? Would it be reasonable to take it as early as possibly then invest it?
@markb1697
Жыл бұрын
if you can guarantee a return without risk higher that 8%, then go for it. Waiting until 70 gives a built-in return guaranteed, plus inflation adjustments.
@Frank-nh9fe
Жыл бұрын
@@markb1697Correct, assuming longevity. If for whatever reasons one does not expect to live long, the solution could be different. But then throw in spouse, etc. Even if one does not need SS, still a complex problem with no pat answer. A game of probabilities. Of course not needing SS is a very good position to be in.
@CADreemz
Жыл бұрын
Hi, my X spouse has delayed asset division for 8 yrs after divorce. He has been hiding another as well. Can a large investment firm divulge a large money came from via subpoenas? Like if it came from a employer or a life insurance policy? I would like a contact email for you if that's possible? He has put his new wife's name in the one small asset I'm aware of. We are both in our mid 50's. I have been a full-time parent,long term marriage, & I'm disabled. Thank you
@cathya222
Жыл бұрын
Rob great video! What is the spousal rule for SS? I’m planning to take it at 62 and my husband at 70.
@CaptainBenjamins
Жыл бұрын
Women live longer than men why not have your husband do 62 and you do 70?
@lorraineg7223
Жыл бұрын
Hi, Thank you so much for sharing. I have a question. My full age is 66 And 6 months. Birthdate 9/30/1957 But I want to file Jan 1 2024. But I am still working So in March I will be full age, you can work at same time. How do I find out filing those 3 months in advance will affect?
@lorraineg7223
Жыл бұрын
Thank you very much yes that helps me a lot
@travelingfool9096
Жыл бұрын
ASAP for me
@hanwagu9967
Жыл бұрын
I really hate things like the United Income Inc analysis (which is no longer United Income since Capone bought them out), because they always rely on some headline grabbing number (e.g. $3.5T) without providing the raw data. I'm also confused by the open social security age assumptions, since it uses 82yo male and 85yo female median age based on SSA life table, which shows median life exp 74yo and 80yo male female respectively (most recent data shows a decline to 73yo and 79yo respectively). This means the data is skewed for males by 8years and females by 5 years. The break even point between 62 and FRA 67 is 10.5years. How then are american leaving $3.5T on the table claiming social security early? Seems to me that men are dying at the break even point, so there's nothing to actually leave on the table. women are dying about 1 year post break even point, so is the one year increased ss worth the 10.5 years of spending soc security? In 2022 there were 37.708million people 70yo and older drawing social security and only 5.829million 85yo and older. Based on this actual data from ssa, using a tool that assumes 82yo male and 85yo female to determine optimal age to start ss is absolutely ridiculous.
@randolphh8005
Жыл бұрын
What idiot would believe that IF benefits get reduced in the future, those that claimed early, wouldn’t have their benefits reduced the same percentage as those that had been eligible but waiting? IF SS is cut it will first be for those not eligible ( younger workers) or across the board. Social Security has plenty of money, just not enough to pay all benefits without changes. It is a huge mistake to take early because “they will run out of money” The government never runs out of money, only people do!!
@nala3038
10 ай бұрын
Social security has a new plan where by if you delay taking it until your are 105 they will give you a check for 100 million dollars. I'd wait for the big pay out 😂
@PH-dm8ew
Жыл бұрын
that lifetime loss does not account for the majority of us who don't make it to 85
@murraypassarieu9115
Жыл бұрын
My benefit is going to be tiny and my wife isn't eligible so I will probably wait until 70 since we're gonna have to primarily fund our retirement in other ways.
@bridgecross
Жыл бұрын
Even if your wife isn't eligible (I assume she doesn't have the required 40 quarters of work?) she can still claim a benefit when she reaches her own retirement age. A spouse will collect up to 50% of your benefit, or their own benefit from working, whichever is larger. From the SS web site: "A wife with no work record or low benefit entitlement on her own work record is eligible for between one-third and one-half of her spouse’s Social Security benefit." Also be aware that she will continue to collect your full benefit should you pass away.
@janethunt4037
Жыл бұрын
Thank you Rob. I was all set to file at age 62 until I learned that spousal benefits would be cut based on the same percentages that my full amount is cut for taking early. I thought I could increase to 50% of my husband's when he filed for his. Not so. Ugh!
@noreenn6976
Жыл бұрын
Did you speak with someone at the SS office?
@janethunt4037
Жыл бұрын
@@noreenn6976 There's a calculator on the SS website where you fill in your age that you want to retire, and it shows the percentage cut of SS benefits if you change to those when spouse retires.
@bradk7653
Жыл бұрын
Yes, if you claim your own early then when you switch to Spousal Benefits those will also be reduced. However your Survivor Benefits would not be reduced, it would be whatever your spouse was receiving, or at least 82.5% of your spouses PIA (example: if you spouse took at 62 and thus was only receiving 70% of their PIA and then they pass you would receive 82.5% of their PIA if you waited until you FRA before taking the Survivor's Benefit).
@lifessnippets5777
Жыл бұрын
My view is to maximize your monthly income regardless of lifespan. This is because most expenses are weekly or monthly. The priority is to manage your monthly expenses and have enough left over to enjoy other things.
@jgleigh
Жыл бұрын
@Rob Berger, does MaxiFi properly account for future inflation? The PIA from the SS report doesn't so it can be very far off depending on how far away from 62 you are.
@jpdurr
Жыл бұрын
Why do you have Ohio State Footballs showcased in your background?
@Rainy_Day12234
Жыл бұрын
If you’re unhealthy or have a family history of early deaths claim it earlier.
@user-wn5tn4dy4f
Жыл бұрын
If your main SS goal is to give you wife the best death benefit, waiting till 70 seems like the best choice. Do you agree?
@bridgecross
Жыл бұрын
I was just thinking this. If a wife is younger than her spouse (also taking into account women living longer) then she might be collecting that benefit for years longer. If I could financially manage delayed SS for the extra 3 years I would do it.
@markb1697
Жыл бұрын
@@bridgecross Definitely a Strong consideration that a lot of folks fail to take into account when doing analysis. This is also likely your only income stream that has a built-in cost-of-living adjustment. Many pensions and most current Annuities no longer have that.
@wannamontana4130
Жыл бұрын
Playing with the topic: Sooooooo, does this imply that the younger spouse is essentially getting a bump in death benefits for the price of passing on early years of spending Social Security? Doesn't that sound interestingly like a premium for life insurance? .... and I thought we didn't need life insurance when we got older. What was I thinking?!?!?!? LOL
@nealkonneker6084
Жыл бұрын
That the government encourages waiting is evidence that you shouldn’t.
@jameslu680
Жыл бұрын
Can't wait to buy the Ferrari at age 98
@bassmaster1953
Жыл бұрын
Too much info. Thank goodness SS income isn't necessary for me.
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