Dave Ramsey vs Social Security
Ramsey has never been one to keep his opinion to himself — especially when it comes to Social Security.
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In the past, Ramsey has even said that Social Security is a “stupid thing”, as well as a “mathematical disaster.”
Collecting Social Security Benefits
However, Ramsey has also opened up about when he thinks Americans should collect their Social Security benefits.
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This topic has long been controversial, as every financial advisor has a different opinion. Ramsey believes that people should begin to collect Social Security when they turn 62 years old.
What Other Financial Advisors Say
Often, financial experts recommend people don’t do what Ramsey says. Instead, these analysts state that Americans should wait until they are about 66 or 67 to collect Social Security.
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Americans can receive full retirement benefits when they hit this age range. Often, if they wait until this time — or until they are older, such as 70 — seniors can receive more in monthly benefits.
Why People Shouldn’t Receive Social Security at 62
According to these other financial experts, seniors shouldn’t begin to collect Social Security at age 62, even if they can choose to do so.
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This is because their benefits and monthly payments will be much less than if they just wait a few more years.
Ramsey’s Advice
However, Ramsey doesn’t follow this normal advice and instead has told people to begin to collect Social Security when they are 62.
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Ramsey has stated that this is an okay method to take — as long as you make another move alongside the collection. He said, “It almost always makes sense to take it early if you’re gonna invest every bit of it.”
Receiving More Money
Ramsey has further added that if you begin to invest this money early, you’ll receive more money than if you wait until you’re 66 or 67.
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“That one account will make you more than enough to cover up the difference between your [age] 66 account and your [age] 62 account,” he explained.
Finding Good Mutual Funds
To truly ensure you’re investing accurately, you must find good mutual funds. These funds can then allow you to bring in more money by collecting Social Security when you’re 62.
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However, finding these good mutual funds can be an incredibly difficult task — especially if you’re not comfortable with investing or do not have a professional doing it for you.
Ramsey’s Advice May Be Risky
Some critics have pointed out that Ramsey’s advice may be risky to many people.
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After all, if you don’t know how to accurately invest in good mutual funds, then you could end up putting yourself in a worse financial situation than if you had just waited to collect Social Security when you were older.
Seniors May Need Money Now
Furthermore, other critics have explained that seniors looking to retire and collect Social Security may not have the chance or opportunity to invest their money.
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Instead, they may need that money to pay their bills or to use it in their daily lives. Therefore, this advice wouldn’t work for them.
Waiting Around for Investments
Meanwhile, other older Americans may not be in a financial situation where they can wait around for these investments to pay out well in the near future.
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As everybody is in a different situation, this advice may only benefit the select few who have the opportunity to invest their Social Security.
Social Security Practices Vary
Clearly, Ramsey’s advice could be incredibly helpful to some — and not helpful at all to others.
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Advice on how and when to collect Social Security — and then how to use these benefits — varies from advisor to advisor. Expert advice will likely only continue to differ in the years to come.
