The Internet is a buzz with financial advisers and other so called experts talking about the glories of waiting to collect Social Security. DELAY, DELAY, DELAY, they say.
They promise a 7-8% "annual return." But it is not a true annual return. Instead your monthly checks will be 7-8% higher if you delay collecting for a year. The reason your Social Security check is 7-8% higher each month if you delay a year is you don't get a check while waiting. So you are not getting an investment return because there is no money given to you while you wait for benefits.
A 8% investment return would mean that you had, for example, $1000 and your investment increased 8% and now you have $1080.00. But when you delay your social security a year, you have no base of funds to work with, so there is no real return on your investment in a traditional sense. Your annual return while you wait is $0. You only get a return in twenty years or so.
Please, call it what it is when you delay Social Security: A increase in your monthly check of 7-8% by delaying your benefits because you did not get any checks the previous year. It is not an annual return!
Submitted August 23, 2018 at 09:04AM by KillingTime56 https://ift.tt/2LjNGpX
