Social security benefits at 62 — Heed Terry’s Warning!
Good morning, I will be taking a early retirement as of March 1st. 2022. I’m a Union electrician and I have approximately 750 K. in my pension plan 5. Megent financial is helping me with all the paperwork. When I went to the retirement seminar they strongly suggested to take social security benefits at 62. I’ve heard you talk about it on WGN radio that you should wait until full retirement age. I did file to start taking it at 62. Not sure if I did the right thing.
Terry Says
OMG. This is TERRIBLE advice. The reason they gave it to you is that they are not only ‘helping you with the paperwork’ — but they are likely rolling over y our pension assets to their money management. And the more you leave with them, the more they will make off of you!! That’s why they so wrongly advise using SS benefits first. GET AWAY FROM THEM NOW — THIS IS A RIPOFF!!
The CORRECT strategy is to wait as long as possible to take Social Security, even to age 70 — and to live off your pension assets until then. That way, you build a huge base check (roughly 8% more every year you wait) and that is the base on which future inflation adjustments will be made! This is your guaranteed income for life.
If you don’t believe me, read the two books written by Social Security expert Laurence Kotlikoff — “Get What’s Yours from Social Security” and his brand new book “Money Magic” which I will review next week. Both are available on Amazon.
Right now:
1. WITHDRAW your application for Social Security. You can do that. Do it in writing AND online. And if you do get a check there is a procedure for returning the money and changing your mind. DO IT!!
2. Do NOT have the money from your pension transferred to this company. Review your choices for either a monthly pension (particularly if you have a spouse) or a lump sum direct rollover. Then call either Fidelity or Vanguard and have the money rolled there. Yes, you’ll have to make some investment decisions about it– but for the meantime have it put in their money market fund in an IRA Rollover account. they’ll handle it.
You could hardly do worse than the plan these idiots have laid out for you– and I say that without even knowing the investments they recommend for you. Gotta be high cost, high fees, and wrong!
Or if you want some good trustworthy advice go to Wealthramp.com, where you will be matched with a FIDUCIARY (puts your interests first) FEE-ONLY financial advisor you can trust.
