November 26, 2024

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I’m 60 with $500k – an expert says I can retire thanks to the year I was born

3 min read
I’m 60 with $500k saved – an expert says I can retire early but it’s the year I was born that’ll make me mo...  The US Sun

SAVING for retirement is a daunting challenge facing millions of Americans in their 60s and 70s.

One financial adviser shared how a couple of 60-year-olds can retire comfortably with $500,000 saved up.

Retirement advisers can provide help to those looking to enjoy their golden years

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Retirement advisers can provide help to those looking to enjoy their golden yearsCredit: youtube/Drew Blackston, CRC
Even older people with savings can struggle to make them last

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Even older people with savings can struggle to make them lastCredit: Getty

Drew Blackston is a certified retirement counselor and financial advice YouTuber who shared the unorthodox tip.

“I’m gonna show you why this couple should claim Social Security at 62,” he said.

This goes against conventional wisdom, which often holds that waiting to claim is a good idea.

That’s because claiming at 65 or 67 gets you larger payments.

Read More about Retirement

“I know I just said something you don’t hear a lot of financial advisers talk about,” Blackston said. “And that’s claiming Social Security early.”

THE SITUATION

The Florida couple had already retired, but at 60 they were not old enough to claim any Social Security benefits.

Because they were born after 1960, their full retirement age is 67.

“Full” retirement age refers to the point at which they can claim full Social Security benefits.

Most read in Money

The couple has two IRA accounts on top of an ordinary bank account.

WHY CLAIM EARLY?

Since the couple has money in IRA investment accounts, that money can continue to grow if they leave it be.

I’m 62 years old and have $1.5m – I want to retire but expert told me exact number of years I need to keep working

That means taking social security as income for the first few years of retirement can allow the IRA money to grow significantly.

Even though they would end up paying tax on the larger IRA withdrawal, it can still be worth more to let the account grow.

Because they have over $500,000 in retirement assets, the amount of growth over the years of claiming social security early would likely be significant.

They would likely end up with more that way than if they waited to take Social Security, since the payment difference between claiming at 62 and 67 is only a few hundred dollars per month.

Finances are highly individualized and it’s advisable to talk to a financial adviser personally before making any big decisions.

MORE RETIREMENT TIPS

As more people flock to social media in search of quick financial advice, the U.S. Sun has kept track of a number of money tips.

Other experts have also advised those with private assets to consider claiming benefits early.

However, there are pros and cons to this decision.

Read More on The US Sun

See the U.S. Sun’s list of five ways to save for retirement.

A couple in their mid 60s had over $4 million in savings, but still found themselves worried about the future.

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This article has been archived by Slow Travel News for your research. The original version from The US Sun can be found here.

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