Is it a good idea to collect social security at 62, continue to work & contribute that amount from before tax payroll to a 401(k)

Tim | 10.30.15 @ 18:09

Only take early out on Social Security if you can well and truly retire. Ignore all the babble about what happens if you live until the next Ice Age, you could get run over by a truck tomorrow. On the other hand, unless you have a rock-ribbed, defined benefit pension, or a $1 million-plus in savings, you will probably need social security to make ends meet. The thing about early pension is, the penalties kill you. If you are eligible for $900/mo in social security, and make $36,000 at work (about $18/hr), you get nothing from the Feds. On the other hand, if you are 62 and well off enough to walk out the door, then you get that $900 to help pay the bills, Have her apply for disability. If it gets rejected, apply again. If they ask for a doctor's evaluation, go see the doct0r. If they still stiff you, call your congressman or senator. My daughter is a traumatic double amputee above the knee -- it took three applications and a call from then Senator Jim Webb to get her disability approved.

Gerald Mendes, Investment Advisor Representative in San Rafael, CA | 05.17.16 @ 23:24

Your wife may indeed be eligible for Social Security Disability Insurance payments, based on a lengthy application and waiting period while the SSA looks through her medical records and physician comments. Do not apply for SSI if your wife has paid into Social Security; SSI is for indigent or people who have little to know contributions to Social Security. SSDI is a different program, and sounds like the correct fit for your wife. The difficult issue in qualifying for SSDI is that her disability will be determined, not by her physical or mental status alone -- but primarily by whether or not she can work at any job at all, and earn a threshold amount. That's why her physician's records are so important. Talk with her physician first, and explain your dilemma. If the physician says she's 100% disabled and is not likely to recover within the next 12 months, and cannot hold a job because of mental or physical limitations -- then she probably qualifies. If she's already been unable to work for at least 12 months, and that status is supported in her physician's records over the preceding 12 months, they she probably can qualify on that basis unless there's any prediction of recovery in the near future. Best of luck to you both.

Amots | 04.03.16 @ 22:09

Arin, I'm not a financial adviser, but I need to correct your numbers. Without taking Taxes and spouse in the calculations, the break even point for a 10 years difference is over 13 years (163 month), so if you start at 62 you have a 10 years head-start on age 72.