A Cogent Article in Support of Claiming Social Security Early
Certainly, the conventional wisdom on when to begin drawing Social Security retirement benefits depends on several key factors, like your financial position, your expected longevity and family history, and so on. Despite those considerations, age 62 remains the most popular age to take that step, and a post by GoBankingRates’ Andrew Lisa on aol.com offers some support for this strategy. Click here to read the full article.
Lisa’s analysis gives credence to the time-value-of-money concept, comparing the thought of deferring cash flow in exchange for an eventually higher monthly benefit to the fallacy of viewing a tax refund as a positive bonus. His premise is largely embodied in this statement: “Just like your tax refund is money the government denied you the opportunity to invest, postponing Social Security steals time you could have spent growing your benefit to match or exceed the delayed retirement credits you would have earned by waiting.” One of the most often overlooked calculations, of course, is determining what the “breakeven” point is…and Lisa’s article provides mathematical examples of how this “breakeven” analysis plays out.
Overall, a good post for someone wrangling with the decision of when to file for benefits. If you’re in that position, know that the AMAC Foundation offers a free-to-the-public Social Security Advisory Service that can provide credible guidance, especially in matters like determining your “breakeven” point. Learn more about this service and how to access it via the AMAC Foundation website.