Retire Early Lifestyle
Retirement; like your parents, but way cooler

 
 

Retire Early Lifestyle Blog  Free Newsletter Subscribe/Contact Us

Advertise on RetireEarlyLifestyle.com info here

In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 3rd decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

Why we are taking Social Security at age 62

Billy and Akaisha Kaderli

We have decided to take Social Security at age 62. We know there are as many ways to consider this decision as there are days in a year. And many experts advise against taking social security “early” so that you get a bigger check at full retirement age. It is hard to argue against that.

We have always lived an unconventional lifestyle and the fact that so many experts agree on waiting for payment gives us pause for thought. Here is our logic.

 

First, the S&P 500 index has averaged over 8% per year, plus dividends, since we retired in 1991. If we take social security early and invest it, we won't be losing the 8% per year the experts claim is the annual increase of waiting - although one is guaranteed and the other is not. Maybe the markets will trend sideways or go down or even up, no one knows. For the last 24 years we have lived off of our investments through up and down markets, and could easily make it another four if necessary, so investing the monthly check is definitely an option. More likely, we will just not spend our stash and look for opportunities in the markets as our cash positions grow. Plus we have control of the money at this point, adding to our net worth.

Next let’s look at some numbers.

For easy math, say at 62 you are going to receive $1000.00 per month in benefits, but if you wait until you are 66, your payment will be $1360 ($1000 x 8% for the four years you have waited). Sounds great, right? However, you would have missed receiving $48,000 dollars in payments from the previous 48 months. How long is it before you make that money back? Using this example it would take 133 months or a little over 11 years ($48,000 divided by $360) and that would put us at 77 years of age, just to break even. In that time frame, the Social Security we will be receiving plus our investments should grow far outpacing the extra money received by waiting.

 

For some people deferring until their full retirement age could make sense, especially if they do not have the assets to support themselves, are poor at handling money or if they are still working. However this is not our situation and therefore we have decided to take the money and run.

It’s really a question of who you think can handle your money better; You or Uncle Sam?

Free Newsletter, Subscribe here

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance and world travel. With the wealth of information they share on their popular website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible.

For more information about financial independence and travel, visit our book store

Sign up for great stories, interesting tales, and superb retirement information.

Contact Billy & Akaisha  TheGuide@RetireEarlyLifestyle.com

Advertise on RetireEarlyLifestyle.com contact Ad-Info@retireearlylifestyle.com
Over 1,400,000 visitors annually.

Billy and Akaisha continue to journal and photograph their world travels.

HOME   Book Store

 

Retire Early Lifestyle Blog      About Billy & Akaisha Kaderli      Press     Contact     20 Questions     Preferred Links     Retirement     Country Info    
Retiree Interviews
      Commentary     REL Videos