Sat Dec 21 2024, by Tyler Gardner

Three Reasons I Will Be Taking My Social Security at 62

Here are three reasons I will be taking my social security at 62, and I triple dog dare you to challenge me on this one. I'm Tyler, a former financial advisor and portfolio manager. Now I make financial content for free so that you don't have to pay for it.

1. Higher Aggregate Benefits by Age 77

If I am using the benefits to live off of, meaning I'm putting them in a savings account and then spending them, by taking it at 62 versus 67, I won't have higher aggregate benefits until I'm 77 years old, aka the average age of death for males in the United States.

2. Investing Early Benefits

If I'm not using the benefits to live off of, now even better, I can invest those early benefits, gain an additional five to eight years of compound growth. By taking it at 62, I am projected to always have more total money than if I took it at 67 or 70. Math, maths.

3. Capital Gains and Income Limits

Finally, for those rightfully pointing out that if I make over 22,000 bucks a year of ordinary income, I'd be docked about two bucks of social security for every one dollar over the limit, you are exactly right. That's why I've been investing 500 bucks a month in low-cost index funds since the age of 30. By the time I'm 62, that account will most likely be worth about $662,000. I can then live off the capital gains from those investments, which don't impact my social security benefits. Are you not entertained? ARE YOU NOT ENTERTAINED?

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