Retire at 55 – What Happens to Your Social Security

Public Safety Employees can take distributions from their government sponsored retirement plans at age 50 WITHOUT the 10% penalty!

Did you know that? I did not and I can’t believe I missed this! Many thanks to a subscriber who pointed this out to me today.

This law was signed by Obama in 2015, yet here it is 2018 and I was only made aware of it. Crazy.

Two morals of the story here:

1. If you are a government Public Safety Employee you’d be CRAZY to rollover your retirement $ to an IRA. (Even double if you’re ANY government employee living in MD or RI).

2. No one knows everything. You need to be open to other ideas and suggestions as someone WILL know something you do not.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions

https://www.investmentnews.com/article/20150918/FREE/150919904/law-expands-10-penalty-exception-for-public-safety-workers
=================================
GET ALL MY LATEST BLOGPOSTS:

If you like what you see, a thumbs up helps A LOT. It tells YouTube that people are engaged and so the Youtube algorithm will show the vide to others who may be interested in the content. So, give me a thumbs up, please!

Don’t forget to SUBSCRIBE by clicking here: https://www.youtube.com/channel/UCSEzy4i9xrKPoaU9z0_XbmA?sub_confirmation=1

Contact me: Josh@heritagewealthplanning.com

GET MY BOOKS:
Both are FREE to Kindle Unlimited Subscribers!

The Tax Bomb In Your Retirement Accounts: How The Roth IRA Can Help You Avoid It
https://amzn.to/2LHwQpt

Strategic Money Planning: 8 Easy Ways To Put Your House In Order
https://amzn.to/2wKGi50

PODCAST:
https://itunes.apple.com/us/podcast/josh-scandlen-podcast/id1368065459?mt=2
http://heritagewealthplanning.com/category/podcasts/

LET’S SOCIALIZE!
Facebook: http://Facebook.com/heritagewealthplanning
Linkedin: https://www.linkedin.com/in/joshscandlen/
Quora: https://www.quora.com/profile/Josh-Scandlen
Google +: https://plus.google.com/u/1/108893802372783791910

By a subscriber request, yesterday I did a video on what happens to your Social Security when you retire at 60. https://youtu.be/x2siQPG1d9c

That video got me thinking…a lot actually. In fact, I woke up at 4:30 with numbers crunching in my head. Yes, I’m an odd bird indeed.

But yesterday’s video was huge for me. Because it showed me proof that working an extra few years in some crappy old job you hate simply is not worth it, at least when it comes to the extra benefits you’ll get from Social Security.

In fact, what I showed is that if you work an extra 5 years or so, you’ll get an extra $500 a month in benefits. Which may sound nice. But when you think about it like this a full job, 40 hour work week, equals 2080 hours of labor a year.

Thus to work an extra 12,000 hours for an additional $6,000 year of benefits, just doesn’t seem like a good tradeoff to me.

In pure numbers way you live 20 years in retirement. Because you worked that extra 6 years you were able to capture an extra $6k a year in Social Security benefits. $6k a year times 20 years = $120,000,

$120k is the extra amount you’ll gain from Social Security for working an extra 12,480 hours.

If we divide $120,000 by 12,480 hours we get an hourly wage of $9.61. And that doesn’t even include the time spent commuting getting up in the morning etc.

Is it worth it? Especially at a job you hate??? I don’t see it.

So, I crunched the numbers for someone thinking the same at 55. Again, I just don’t see it.

Now, if you like your job, hey, more power to you.

Or if you have debt and need the cash, you probably need to stay put and not go raise chickens full time in the backyard.

But the amazing thing about having no debt is that if you can’t stand what you’re doing for work… QUIT!!! Do something you love.

You’ll be happier, more productive and maybe, just maybe you’ll make more income. I don’t know about the last part, but if you’re just staying on for Social Security money in the future, this video will show you why that’s a huge mistake.

© Copyright 2018 Heritage Wealth Planning