Social Security: 3 Reasons You Shouldn't Apply for Benefits at 62

Although it's usually smart to apply for benefits as soon as possible, the same doesn't hold true in these three scenarios.

May 19, 2014 at 5:15PM


It's in some people's best interest to take Social Security as early as possible even though it could reduce their benefits by as much as 25%. But there are three circumstances in which it's best to wait until age 66 or later.

The first is if you continue working past the age of 62. If you do, and you earn above a predetermined threshold (currently $15,480 per year), then your Social Security benefits are temporarily reduced by $1 for every $2 in wages in excess of the limit -- this stops once you reach full retirement at 66.

The second is if you're optimistic about your longevity. If you're healthy and legitimately expect to live longer than the average American, then it would behoove you, at least financially, to wait until full retirement before receiving benefits.

And finally, if you have a spouse or other dependents that will receive survivors' benefits, it's often in their best interest if you hold out as long as possible. This is because the larger benefits associated with waiting will accrue to them even after you're gone.

The net result, as Motley Fool contributor John Maxfield concludes in the video below, is that you should be particularly attuned to these exceptions when you're deciding whether or not to apply for Social Security benefits prior to your 66th birthday.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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