Retirement Starts Today Collect Social Security Early & Invest in the Market?
Sep 22, 2025
Should you claim Social Security early and invest the funds? Explore the risks, like permanent benefit reductions and potential tax consequences. Discover why delaying benefits may provide better long-term growth through COLA adjustments. The discussion also features listener questions on traditional versus alternative portfolios, emphasizing the importance of a balanced approach to risk management. Learn strategies for maintaining a stable retirement portfolio to reduce stress and ensure steady income.
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Delaying Social Security Is A Powerful Guaranteed Return
- Delaying Social Security acts like earning a guaranteed ~8% real return with inflation protection built in.
- That guarantee combines lifetime income, COLA growth, and survivor benefits few investments match.
Don’t Ignore The Tax Drag
- Avoid treating early Social Security checks as free market seed money because you add multi-layered tax drag.
- Expect Social Security income and any brokerage gains to increase taxable exposure and reduce net returns.
Lost COLAs Multiply Over Time
- Claiming early forfeits higher base amounts so future COLAs compound on a smaller number.
- This lowers long-term purchasing power compared with waiting and growing your benefit first.
