If you’re nearing retirement age or know someone who is, Social Security can be a bit complicated. Should you take it early? Should you wait?
As someone in my early 40s, I’m not nearing that decision but my parents and my in-laws are. (or more accurately, they were a couple of years ago when they were in their mid-60s)
When it comes to Social Security, you can take it early (but you get less) or you can wait a few years (and get more).
One option I hadn’t thought of, but that Jesse of The Best Interest was asked, was what if you took it early and then invested it. Would you do better than waiting?
“Why Can’t I Take Social Security Early and Invest It?” [The Best Interest] – “If your Social Security is “play money” in your financial plan, and you’re ok with risking a loss, I can see the merit and appeal of DT’s proposal. You can apply for Social Security early, invest it (reasonably), and the odds are in your favor that you’ll end up in a good spot.
But it’s no guarantee.“
There’s a little bit of math and coverage of a lot of scenarios and contingencies, but a very good explanation.