Are you considering delaying your Social Security benefits until age 70 based on the belief that the break-even age is around 80 or 81? This might not be the best decision for you. In this video, James delves into a real client example to illustrate how decisions around Social Security can have profound implications on your financial plan. Greg and Sherry, a couple aged 62, approached us with the goal of retiring immediately. They had a substantial portfolio, including 401(k)s, Roth IRAs, savings, and a paid-off home. Their aim was to maintain a $6,000 monthly lifestyle throughout retirement, accounting for healthcare expenses and taxes. Key Assumptions: Aggressive Investment Mix: 90% in diversified stocks, 10% in various bonds, projecting an 8.8% annual return. Longevity: Projected lifespan until age 95. The traditional analysis suggests that delaying Social Security until age 70 yields greater lifetime benefits. However, a detailed examination reveals a critical factor often overlooked – the impact of delayed Social Security on the overall financial plan. Initial Analysis: If Greg and Sherry chose to collect Social Security at 62, their portfolio would maintain a healthy trajectory, allowing them to meet their expenses over the years. The net effect was positive. Counterintuitive Results: When they considered delaying Social Security until age 70, the seemingly increased benefits came at a cost. The strain on their portfolio during the years without Social Security income significantly offset the potential gains, resulting in over $400,000 less at the end of their lifetime. James emphasizes the often-underappreciated role of the rate of return on investments. In a hypothetical scenario with a lower growth rate of 6.3%, delaying Social Security until age 70 proved to be more financially advantageous, adding over $850,000 to their overall wealth. While the break-even age is commonly cited as a justification for delaying Social Security, the analysis reveals a more nuanced reality. Even with the additional wealth created by delaying, the break-even age could still be around 86. The decision on when to collect Social Security is complex and interconnected with various aspects of your financial plan. A holistic approach, considering factors like investment growth, tax implications, and other income sources, is crucial. There is no one-size-fits-all solution, and a personalized analysis based on individual circumstances is imperative. ======================= Learn the tips & strategies to get the most out of life with your money. Get started today → https://www.rootfinancialpartners.com/ Get access to the retirement software I use in this video and more → https://retirement-planning-academy.mykajabi.com/rpa 🔔 Make sure to subscribe here to be notified for future videos! https://www.youtube.com/channel/UCBNdQfS-fzODmYb8Hkr4egA _ _ 👥 Make sure to connect with us on all socials below → https://beacons.ai/rootfinancialpartners ⏱Timestamps:⏱ 0:00 Delaying social security? 0:30 A case study 3:30 Things to consider 6:00 Calculating portfolio withdrawal percentage 8:09 SS at 62 versus 67 11:55 The analysis 13:50 Opportunity cost 14:28 No one size fits all 16:48 The impact of growth rate 18:16 The break-even age Other videos we think you'll like: About Root: https://www.youtube.com/watch?v=ZPy7Qlmemy8 Worried about retirement? Start here: https://www.youtube.com/watch?v=c1dCo73XTw4