Collecting Social Security early to invest.
Hello Terry,
I haven’t worked in four years, due to caring for a developmentally disabled adult child and elderly mother. Our other 3 children are adults and doing very well financially. Our home is paid for and we have no outstanding debt. We have a substantial amount invested from my company’s 401K and my husband is still working and contributing to his retirement plan and he will also receive a pension when he retires. I am 63 1/2 years old and in good health. I was thinking about taking my Social Security now and investing it in a Roth account. What are the possible advantages and disadvantages of an early withdrawal?
Thank you!
Terry Says
That is a TERRIBLE idea! For every year you wait until age 70, you collect an extra 8% in your SS check. And I doubt you will get a guaranteed 8%/year return on your investments!
And you would permanently lower your base on which FUTURE inflation adjustments will be made– and there WILL be big inflation when the world decides the dollar isn’t worth much because we printed too many of them.
And, you will be penalized on your early SS check if you DO go back to work.
Enough reasons to wait till full retirement age (67) or maybe until age 70??!!
