Man Claims Social Security Early at 64 - His Daughter Got $313,000 for College

A retired man shared how claiming Social Security benefits early turned into a smart financial move for his family.

Social Security (government retirement money) is a hot topic for Americans approaching retirement. Most experts say to wait until age 70 to claim benefits because you get bigger monthly checks. But one retiree discovered that taking his benefits at age 64 was actually the better choice.

The key discovery? His teenage daughter could receive two-thirds of his benefit amount until she turned 18. That's five years of extra money the family hadn't counted on. Instead of spending it on daily expenses, they invested nearly all of it in a 529 plan (a special savings account for education expenses).

The results were impressive: • His daughter's college fund grew to $313,000 • This covers her entire undergraduate education at University of Minnesota • Plus two years of graduate school • With $35,000 left over for a Roth IRA (retirement savings account)

The man also realized that Social Security would only make up 20% of his retirement income because he had substantial savings and investments. This made the extra money more valuable now than waiting for slightly larger checks later.

The lesson? There's no one-size-fits-all answer for when to claim Social Security. Each person's situation is unique. Factors like dependent children, other income sources, and life expectancy all matter. The key is doing the math and understanding your complete financial picture before making this important decision.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/i-nearly-made-a-major-misstep-i-claimed-my-social-security-benefits-at-64-instead-of-70-heres-why-e0d0edfe?mod=mw_rss_topstories