RDQ… The magic word is IF! IF you claim early and INVEST… Years ago, in the late 70’s a guy by the name of A L Williams devised a scheme to “beat the insurance industry at their crooked game!” “How”, you might ask? He developed the strategy of “Buying Term, and Investing Difference.” I am NOT suggesting your motives for your recommendation for consideration of Claiming social security are anything like his regarding life insurance, but I BELIEVE the outcome will be similar! Williams’ strategy involved advising and assisting people in surrendering WHOLE LIFE or permanent life policies, stripping out the cash values to invest in mutual funds, and buying Term Insurance instead. Disregarding the facts that Williams and all of his acolytes(he created an MLM Organization with which he caused untold damage to American life insurance policy owners) sold a terrible, low rated term product, and then recommended mutual funds with the highest fees in the market, at the time. Williams became a multi-millionaire, and as you might suspect, his MLM acolytes usually made very little and quit after a short period of “going for it!” Now…the problem with A L Williams’ strategy was simply that many people surrendered their permanent insurance but they did not “invest the difference.” They spent it. And then their subpar Term Policies would lapse and they were left with nothing! Claiming early with Social Security will never “leave you with nothing,” but I am afraid many people will not save and invest their benefit dollars, rather they will simply spend them. Not HD readers, of course, but many others. Your calculations aside, it isn’t that it’s not possible, it is however far more risky. 8% guaranteed, with COLA, is hard to beat in the market. But it is also likely that reasons will crop up that cause one to “need the money this month, but I will get back on plan next month.”
After all, life happens. As others have and will say, it’s a personal decision! I waited until 70, because I was still working, and for my wife and me, it was the best decision. If a person needs the money to live on at 62, 67, or anywhere in between, file! We are receiving $73,000 annually in benefits in 2024. We will have recovered 100% of our contributions in 6-7 years. God willing, we will be here to enjoy our hard earned benefits!
GET Woke? Bite your tongue! Vanguard does not need another major screw up To alienate even more of its shareholders! They have only recently reversed their idiotic ESG position, under pressure from shareholders!
One major difference, however, is Berkshire Hathaway is not “bowing at the altar of ESG.” In reality, Berkshire Hathaway is actually opposing implementation of ESG policies on its businesses. And this is as it should be. Their responsibility is to shareholders, not Woke, Leftist Policies. it took Vanguard a while to see the light.
Comments
Congrats on actually “investing the difference!” Far to few do.
Post: Let’s do the math on Social Security- my simplistic math not guaranteed and possibly flawed, but with a good end result for us – I hope. RDQ
Link to comment from October 25, 2024
RDQ… The magic word is IF! IF you claim early and INVEST… Years ago, in the late 70’s a guy by the name of A L Williams devised a scheme to “beat the insurance industry at their crooked game!” “How”, you might ask? He developed the strategy of “Buying Term, and Investing Difference.” I am NOT suggesting your motives for your recommendation for consideration of Claiming social security are anything like his regarding life insurance, but I BELIEVE the outcome will be similar! Williams’ strategy involved advising and assisting people in surrendering WHOLE LIFE or permanent life policies, stripping out the cash values to invest in mutual funds, and buying Term Insurance instead. Disregarding the facts that Williams and all of his acolytes(he created an MLM Organization with which he caused untold damage to American life insurance policy owners) sold a terrible, low rated term product, and then recommended mutual funds with the highest fees in the market, at the time. Williams became a multi-millionaire, and as you might suspect, his MLM acolytes usually made very little and quit after a short period of “going for it!” Now…the problem with A L Williams’ strategy was simply that many people surrendered their permanent insurance but they did not “invest the difference.” They spent it. And then their subpar Term Policies would lapse and they were left with nothing! Claiming early with Social Security will never “leave you with nothing,” but I am afraid many people will not save and invest their benefit dollars, rather they will simply spend them. Not HD readers, of course, but many others. Your calculations aside, it isn’t that it’s not possible, it is however far more risky. 8% guaranteed, with COLA, is hard to beat in the market. But it is also likely that reasons will crop up that cause one to “need the money this month, but I will get back on plan next month.” After all, life happens. As others have and will say, it’s a personal decision! I waited until 70, because I was still working, and for my wife and me, it was the best decision. If a person needs the money to live on at 62, 67, or anywhere in between, file! We are receiving $73,000 annually in benefits in 2024. We will have recovered 100% of our contributions in 6-7 years. God willing, we will be here to enjoy our hard earned benefits!
Post: Let’s do the math on Social Security- my simplistic math not guaranteed and possibly flawed, but with a good end result for us – I hope. RDQ
Link to comment from October 24, 2024
GET Woke? Bite your tongue! Vanguard does not need another major screw up To alienate even more of its shareholders! They have only recently reversed their idiotic ESG position, under pressure from shareholders!
Post: Unwanted Attention
Link to comment from August 28, 2024
One major difference, however, is Berkshire Hathaway is not “bowing at the altar of ESG.” In reality, Berkshire Hathaway is actually opposing implementation of ESG policies on its businesses. And this is as it should be. Their responsibility is to shareholders, not Woke, Leftist Policies. it took Vanguard a while to see the light.
Post: Unwanted Attention
Link to comment from August 28, 2024