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An Analysis of the “File Early and Invest the Cash” Strategy
One of the frequent questions we receive here at the AMAC Foundation Social Security Advisory Service relates to the “when to file” issue, and we typically respond with the benefits of deferring as long as possible (up to age 70) to take advantage of delayed retirement credits, but we also counsel callers with the importance of understanding the “break-even” calculations and how other factors (health family longevity, immediate cash needs, etc.) need to be considered.
Invariably, a caller will pose the question of whether filing at age 62 and investing the monthly benefit would produce enough financial return to offset the lower monthly benefit over the long run. That’s the subject of an article by The Motley Fool’s Keith Speights appearing today on their website. Mr. Speights covers the conventional wisdom espoused by financial advisors before diving into the “file early and invest the cash” strategy, and focuses also on the risks and caveats related to this strategy. Read his post here and, after massaging the information, if you have any questions about the “break-even” aspects of the decision, know that the AMAC Foundation’s Social Security Advisory Staff is available to help you, including an analysis of your individual situation. Learn more about this free service here.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.