6 Ways to Maximize Your Social Security Payout

Draw ASAP - IF...

I would say draw day one if you are not working any more and can use the extra dollars to supplement your investment income - for those who have not prepared for retirement you'll be working to the grave.

This is what this government wants - delay your social security or die young.

MM of OK @ Nov 13, 2009 16:24:42 PM

The Reality of it All

I will be 62 in March 2010. I plan to start collecting and my wife, only 58, will continue to work and earn until until she reaches 66. We both qualify for pensions from previous employment and will wait until full retirement to collect those. Also we have 401Ks of about $200000 between us and currently have a mortgage balance of $70000 with no other debt. The point?

We didn't live a high lifestyle on credit. No new car every 3 years or so. No dinners out a couple of nights a week and Caribbean cruises on plastic. For sure there are some 60 somethings out there in a rough spot through no fault or bad choices of their own, but for many of us, perhaps most, the position we find ourselves in has evolved out of choices we made earlier in life and many of those choices were not wise.

Griping will not help. First SS is a tax, not a pension plan and never was. You are entitled to collect based on whatever the rules are when you retire. It is not a contract with guaranteed benefits. Perhaps it should be, but the fact is it isn't. Second, it would be nice if Congress included all of us in the nice deal they have for themselves, but they won't, and, frankly, couldn't if they wanted to. There wouldn't be the means to fund it. Finally, it's tough to come to see the smart advice most of us knew of when we were young was correct, but the time to choose to follow it was then. It is all water over the dam now.

Hopefully, we can all help each other out since most of us will be in the boat together.

Steve M of NH @ Nov 11, 2009 07:53:47 AM

when to draw

I was born 12/1946 and began drawing Soc.Sec benefits at age 62 which, by the way is the first FULL month you turn 62 which meant I missed any Dec. payment and received payment in Feb for the January I was 62 years old ALL MONTH!

So I will receive payments for four years before I am 66 years old.

HERE IS THE MATH: 48 X$1000 per month equals $48,000 dollars. If I had waited until I was 66 years old I would get $1,250 per month. NOW THIS IS $250 or 25% more per month, However I collected $48,000 so $48,000/$250 equals 192. This is the number of months until "break even" happpens. 192/12 equals 16. This is the number of years until break even, or put another way ANYONE WHO TELLS YOU TO WAIT UNTIL FULL RETIREMENT IS ON THE SIDE OF OUR US TREASURY BECAUSE 66 years plus 16 years equals 82 f'in years old. YOU MAY NOT BE ABLE TO REALLY ENJOY THE EXTRA $250/MONTH YOU WAITED 16 YEARS TO CATCH UP TO ME HAVING $48,000 to use for 16 years which could be at THE END OF MY OR YOUR LIFE !!!!

John Coble of WA @ Nov 10, 2009 23:16:38 PM

EG of Mt

Since when did the boomer generation start in 1943?

Earl Griffith of MT @ Nov 10, 2009 22:18:50 PM

Article doesn't add up

I spoke to several accountants and they all said that retiring at 62 made sense if you can live on Social Security alone. The difference between 62 & 66 (unless you are earning in the 6 figures) is not worth it. Furthermore, unless you plan on living forever, you may not get to enjoy much of your retirement if you retire later. Also, after 70 1/2, you have to start taking money out of your IRAs & 401ks, leaving you with less monetary assets.

Bottom line, enjoy your retirement while you can.

Barry of AZ @ Nov 04, 2009 11:59:47 AM

Medicare

We don't need a cut in medicare, that will mean more out of my pocket, for which I am barely getting by on Social Security alone, because I as robbed of my retirement, for I had to retire early because of illness, just a mounth before I would elegible.

My medicine is so expensive.

Laura Barnes of MO @ Nov 03, 2009 18:22:13 PM

Falling Value of the Dollar

Not if you want to travel Darvel! Which is what most of us want to do in retirement. Might not be bad to buy up little bits of currency for countries you may want to visit. Buying symbols FXE for Europe, FXA for Australia or FXC for Canada etc. might not be a bad idea. Its the purest way to hedge your purchasing power. If you're content with seeing the good ol' USA, well keep those greenbacks. Just buy a little Gold (GLD) or Silver (SLV) to help with they whole inflation thing!

Joel of CA @ Oct 31, 2009 02:14:52 AM

no increase in social security

Why is the Government npt giving out raises for 2 years and yet we have put in this system all working years, now they want to cut medicare.

patti of NY @ Oct 20, 2009 22:50:22 PM