Write Recipient Calculated with airSlate SignNow

Write recipient calculated

[Music] all right Michael I want to talk about delaying social security and when a claim Social Security benefits and let's focus just on single beneficiaries because the factors are very different for couples never married couples so I've seen you one thing that you wrote that said that Social Security is so well priced that it's an amazing deal can you explain that yeah so when we look at Social Security like the the easiest way to evaluate for an individual whether it's a good deal or not is to look at the break-even period the break-even period is how long do I have to get higher payments to make up for the money that I didn't get upfront so if we put it in dollars terms if I'm Adan's someone that's a full retirement age so every year they way they're gonna get wait they're gonna get 8% early retirement credits so if I have someone that gets a thousand-dollar benefit every month now and they decide to wait a year they're gonna get a thousand and eighty dollars starting a year from now so the comparison becomes I don't get $1,000 a month for the next twelve months so they said give up twelve grams in exchange I'm gonna get an extra $80 a month for life starting a year from now so that's that's a break-even calculation how many extra $80 a month payments do I need to get to make up for the $12,000 I didn't get upfront go through the math you find out it's about twelve and a half years of chipping away eighty dollars a month to make back your $12,000 everything beyond that is now gravy is now in your benefit is now in your favor mm-hmm now when we talk about Social Security of course we it's not fair to just look at the $12,000 up front versus the $80 a month because as we've talked about before Social Security is inflation adjusting payments it's got the cost-of-living adjustments every year so I'm actually not giving up $12,000 for 80 bucks a month I'm giving our $12,000 for 80 a month then 81 and 82 then 84 and 87 and 90 is the inflation lifts it up so that brings the break-even period and that means I can actually make my money back even faster because by the time I get there or about the time I'm getting close I'm not just getting eighty dollars a month any more by year twelve I'm getting a hundred or 120 dollars a month and I've crossed out of my $12,000 hole even faster now the caveat from the flip side is I also have to recognize the $12,000 I could have either invested or might have already been in my portfolio and if I had started so security early I could have spent my social security and I could have left the $12,000 invested so we have to account for that growth...