Can I Retire at 60 with $500,000 & Claim Social Security Benefits Early?

I thought you had to be at least 62 before you can collect Social Security.

I toil over the question of whether to take SS at 65 or waiting and pull from my IRA until I hit 67 or 68. I get 8% on my SS every year I wait. Doubt I will get 8% return on my IRA yearly.

I have never seen a Biden tax plan that proposes reducing the standard deduction. Where did you get that?

Here on the work planet I'll have to keep on working past 70.

Thanks Drew fir your informative financial advice videos -- minus getting politically correct 😂

?? If 2100 is from the SS benefit, where is the 1750 coming from? I'm sure I'm missing something.

Im there now but have decided to go another 10yr. It = 1mil in income or 400k saved. + the 900k will last longer. "Based on current cost/ earnings levels. Presently I'm doing alot at home before I start my night shift, I tell my wife I'm going to work to rest. I've seen others work past 70 doing what I do. 😊

Just a quick comment This is a great video. I do appreciate the time you put into informing people of something that's so important. Thank you again!! ✌️ Thx T

Ok, so the Tax's going up is because the Republicans wrote the legislation that way. But business and the Rich get to keep theirs! Typical. Pile trillions on to the National Debt and pat themselves on the back.

If they are in such a low tax rate when taking SS early, would it make sense to do Roth conversions, or would their tax rate still be low even with RMDs? Nice video!

Isn’t there an issue that if one is only withdrawing 3,800 per year from a 500,000 IRA then in reality this never decreases.

Even a 3% rate of return if $15,000. If one is only taking our 3,800 then the balance would be perhaps 550k at 75? What about RMD.

At some point you have to withdraw nearly 20k a year. What about single tax torpedo. One spouse dies. It’s risky.

Either way is a bit of a gamble. My strategy is to spend down the 401k/IRA to a lower level then take SS later. Will perform Roth conversions too.

I calculate an absolute minimum of 1.7 Million to retire bare bones

Wouldn't the $5500 age 67 SS benefit also increase when the couple wait taking from age 60 to age 67? SS doesn't account for this increase on your current statement when they estimate future benefits. Also seems like your calculations of provisional income is off, it is not simply 50% of your SS amount.

Not having debt in retirement is an absolute must. I am also trying to build wealth and consider all my options so I can go into retirement with confidence. Another great source for retirement planning is @PlanningBeforeInvesting he explains things very well.

Love Love Love it! ❤

Truly fascinating, my friend! 😊

are qualified dividends in a investment acct we own taxes when we retire. Luis living in florida

one point I cannot remember you addressing in any of your videos is what happens in the case of a deceased spouse. My mother died at age 66 and my dad is still alive at age 88. In the case of this video where there are two social security benefits involved it seems it may be prudent to take the benefit for the lower income spouse at age 62 and allow the higher income spouse's benefit to increase for as long as possible to reduce the negative exposure to a deceased spouse situation. The only way to know for sure is to run the numbers for each scenario in the software. For me (age 61 & wife 65) there is only a 10 percent chance I live past 92 (30 years) but there is a 10 percent chance or greater that either my wife or I is deceased within within five years. It seems that a premature death consideration is a MUST in any retirement plan.

Beautiful as always drew fabulous 👍🏻👏👏💰📈✏️📝

You may die at 65. Take as much as you can when you can

are you calculating in taxes?

What if one claims early and the other took spousal benefit early then at 70 took their own benefit.

Jimmy Buffett died today at 77. A man dying at that age would not have broken even on social security. If you have assets in tax sheltered accounts that would benefit from a longer simmer, consider taking Social Security early.

Could they not take the $500K (retire at 62) and get 4.5 - 5.0 % interest and not not touch the principal 😊?

Just found out about this Channel a few days ago, and it is great! Seems he is very popular because my call is not until 28 Nov. I would like to see a video on those of us who have a military retirement pension and VA disability check. I'm 55 now, would like to retire at 60 and take SS at 62.

Good for you for homeschooling your kids.

Awesome, awesome. Awesome, as usual Drew. 👍🏻 💰

Cudnt I use those early low tax years for Roth Conversions ? I will be 62 in 2024 so low tax in Trump Cut and before the IRMA 2 yr Reach around?

One thing to consider is your spouses benefit. If you are the breadwinner and you take it early, then if something happens to you, your spouse will get the reduced rate the rest of their life.

What about their medical cost?

This plan sounds great, if both live to their 90's, what happens to the taxes if 1 person dies early and then the IRA needs to be withdrawn in ten years greatly increasing the taxes because you lose the filing joint deduction, and as you age your spending more than likely will go down, at that point with both SSI the yearly spend may be covered with including the IRA, seems planning is very specific to each individual or couple.

I highly doubt a couple that live the life style they are used to can live off even $55,000/year. The amount they are getting from SSI puts them in the top 5% of income in the USA. The other thing missing from your estimates is insurance. This couple is not 65, so they will have quite a bit of expense for insurance before Medicare kicks in.

So when one of the spouse passes, and you're left with one SS income does this blow the math up?

50k in expenses is madness. If you got payments, you probably shouldn't be retiring. When I retire, we won't have mortgage and car payments

I’m going for 65. Many friends I have didn’t even make that. Especially in the past 3 years with the 💉💉💉💉

Great to know I did the right thing. I took SS in Jan after I retired at 63.

Love your videos - thank you! The only part I can't follow is why the SS taxable amount is not the full year amount divided by 2? How are you getting that low figure there?

TY. This was the best presentation. I have ever seen. This is my wife and I except I have small frozen pension that would kick in 600 bucks a month. Great job. Pulling the plug at 62 come hell or high water. Wife likes her job. I only tolerate my job.

Would doing annual Roth conversions improve the situation?

I do not understand where you get two SS amounts $2100 and $1750 = $3850??at 62. Explain where those amounts came from. There is only one ss payment??Right??

There is a fatal flaw with a lot of social security calculations which is the break even age with social security which is 79.8 years old.

I am using my situation as an example using my personal social security statement. If I retire at

62 I will collect $490,000.00 by 79
65 I will collect $504,000.00 by 79
67 I will collect $504,000.00 by 79

They are all quite similar and I did not calculate COLA increases as I do not know future expectations of inflation.

I see no benefit by waiting.
67

Is there an impact with RMD bumping income and increasing taxes?

The elephant in the room. Health insurance. Isn’t that something like 1000 a person per month or 24,000-ish per year prior to getting Medicare at 65? How does that get paid on that income?

So where is this guy getting two separate amounts from as?

great video. This scenario is almost identical to where me and my wife are at. My concern is medical coverage. Please start to incorporate that in future videos

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im going at 60 1/2 with $550k and collecting at 62
LIFE IS SHORT