Taking Soc. Sec. now while working – benefits for or against.
Hello Terry,
My wife and I are trying to figure out the best way to go nearing retirement. We are both 67 and both still working. She is full time, and I am part time, stepping down a bit more each year. If I was to take soc. sec. now and invest that money in a Roth IRA, we figure over 3 years we would have saved $113,000.00, and that does not account for any increase in that may result from the IRA. Nor does it account for any decrease in the IRA. If I don’t take it now (I’d love to wait until 70 and skimp by until then if it makes sense), we figure that even with the higher dollar amount assigned at age 70 to me, it would take approximately 13 years to raise that same $113,000.00
Taking it now – $3100. 00 /month
Age 70 $3800.00 /month
Your thoughts and suggestions as to what is the smartest way to proceed is most welcome indeed. Thank you for your time, and for your expertise in this matter.
Signed: Hoping I get it right
Terry Says
Ah, but you’ve only figured HALF the equaation!
You get an 8% a year increase for every year you wait till age 70.
Do you think you could get 8%/year (after tax) assuming you want to contribute that amount to a Roth? Doubtful — despite recent years of great market gains.
BUT what you forget is that at age 70, you lock in a higher BASE on which future inflation adjustments will be made!
Read this: https://www.terrysavage.com/when-to-take-social-security/
