When Do I Start Drawing Social Security?

[Music] tracy's with us in seattle hi tracy welcome to the ramsay show hi dave hi dr dr john hey what's up i've got a question i've got a question for you my husband and i are having a bit of an arm wrestle about this um in may i turned 62 in september my husband turned 65 and in 128 days loose counting i retire so i am like so excited i'm spitting bubbles um what i want to know we want to know is when can we start drawing social security what we're living on now is his his pension and my paycheck which net is about 55.50 a month and then november in august i'll get my first uh retirement pension which will be gross about 3 100 and then after taxes and my my employee contribution for my retiree health and his supplemental insurance will come out of my pension check so starting like august or september in september his net pension is like 22.50 my gross pension is about 3 100 so i'm and i'm not sure what the net is going to be on that so when should we start and we're not drawing anything from his pen or his 401k or other retirement resources we've got how much is in your nest eggs um total net worth between our house which is paid off here's 401k my deferred comp savings etc we're right between probably 2.9 and 3.1 way to go you've done such a great job congratulations how much of this how much of this did you inherit um just less than a year ago i inherited about 300 so you were already making maybe we're we're already millionaires we were worth about between 2.6 and 2.7 when my mom passed away yeah wow you've done so well congratulations very well done so the bottom line answer is this it doesn't matter social security doesn't mean beans to you you got three million dollars you can do whatever you want to do it doesn't matter now if you want to do it if you want to have a math discussion just for the theory of it and the fun of it social security dies when you die and it's a negative rate of return the money you put into social security you will never get all of it out right so you might as well get all you can get as fast as you can get so i take it early and often and just throw it into an investment if you don't need it yeah and the crazy thing to add into the mix my husband's thinking of going back and getting a job you know and it's like we don't we don't need him to be working and here i am on the verge of retiring none of this matters yeah here's the thing social security little bitty amount of money three million dollars a lot of money your whole yeah your whole life is governed by the fact that you have the returns on three million dollars to live out the rest of your life in style with incredible generosity and with incredible enjoyment and if you'd never got a social security check ever it wouldn't affect this discussion if you get one it doesn't affect this discussion it's a mathematical discussion is all it is it's just like a little math riddle is all it is but it's it really does not affect your life because of how great a job you've done building wealth you did what you're supposed to do you didn't depend on social insecurity thank god it's not fifty percent of your income or seventy percent of your income it's one percent or less than one percent of your income because your income should be three four hundred thousand dollars a year off of this off of these returns on these investments you know and so 200 300 000 a year and we're talking about you know social security's gonna be nothing it's nothing so it's a freaking joke which is what it's always been and by the way a lot of people retire and then a few months later say i'm gonna go get a part-time job or i'm to go back and do something it's not always because i need the money in fact it's often not because i need the money it's because i miss the social engagement i miss the purpose i miss doing something that i love the reason to get out of bed in the morning so i wouldn't knock on that if he wants to go back to work um i'd have a broader conversation about what y'all's life is gonna look like together when you retire in exactly 128 days right yeah isn't that fun that's fun you've done such a great job well done well done so i would take it i would take it all as quickly as i can get it but it doesn't matter so i'm not going to have a big arm wrestle over it it doesn't matter thank god the reason it doesn't matter is because you built wealth i think we can all tell that in an armrestly match she would win

Channel: Ramsey Everyday Millionaires

Views: 272,779

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Id: MFVuHk3fYeE

Length: 5min 38sec (338 seconds)

Published: Wed Mar 16 2022