Claim Social Security at 62 and Invest the Money--Good or Bad Idea?

Several viewers have recently asked me whether it makes sense to claim social security at 62 if you plan to invest the money. At first, it seems like a solid strategy. While your monthly benefit will be lower, you get years of investment returns you'd otherwise forfeit.

It turns out, however, that the issue is a bit more complex. First, depending on your investment returns, claiming social security at 62 may or may not turn out in your favor.

The arguably more important issue, however, is taxes. Claiming social security at 62 could affect everything from how much your social security benefits are taxed to IRMAA premiums or ACA credits. It could also affect a Roth conversion strategy.

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Video Resources
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Social Security Benefits Calculator: https://www.ssa.gov/cgi-bin/benefit6.cgi
Taxes on SS Benefits: https://turbotax.intuit.com/tax-tips/retirement/when-does-a-senior-citizen-on-social-security-stop-filing-taxes/L53Hx1v9W
IRMAA Premiums: https://secure.ssa.gov/poms.nsf/lnx/0601101020
MAGI for IRMAA: https://secure.ssa.gov/poms.nsf/lnx/0601101010
MAGI for ACA Credits: https://www.healthcare.gov/glossary/modified-adjusted-gross-income-magi/

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Investing Tools
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My Book (Retire Before Mom and Dad): https://amzn.to/2MsRJ9B
Personal Capital (Investment Tracking, Retirement Planning): https://robberger.com/go/personal-capital/yt-ssa
New Retirement (Retirement Planner): https://robberger.com/go/new-retirement/yt-ssa
Stock Rover: https://robberger.com/go/stock-rover/yt-ssa
M1 Finance $30 Bonus (IRA & Taxable Accounts): https://robberger.com/go/m1finance-bonus/yt-ssa

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Popular Videos
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1️⃣ How to Create a 3-Fund Portfolio: https://www.youtube.com/watch?v=kmw8OpGp2rM
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3️⃣ 7-Step Financial Checkup: https://www.youtube.com/watch?v=mNWGWxKzKTY

#retirement #socialsecurity #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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