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How Much Is Your Social Security Actually Worth?

Heritage Wealth Planning 8 views

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Since SS is an annuity with a COLA you are correct that you could do the math and determine how much it would cost to buy an annuity with a COLA for the same monthly payment However, your SS is NOT worth $1m since a lump sum is not an option In fact, SS is not included in your net worth (until received) and since it dies when you die, it does not contribute as part of your estate In that respect it is no different than a salary for working which would end if you lost your job You don’t consider your future salary as part of your net worth nor do you say I will work for 20 more years so my future salary is worth $1m SS is the same
Comment from : @Bondbeer

I love your SS explanations! Want to take a stab at explaining the windfall stuff? Including how taking a lump sum many many years ago figures in (when the job also took SS out)
Comment from : @slowmads

Are these NPV numbers only valid if you collect for 30 years? That would be age 97 for those collecting at age 67 FRA? Not many live to that age How would you calculate it for 15, 20, or 25 years past FRA?
Comment from : @jdthompson5778

Josh is the GOAT!
Comment from : @MB-ed2qj

Without knowing the math, I’ve been telling everyone I know, ( past 15 yrs), it’s roughly $1 million, if you can live 15 yrs after FRA… 50 more, if you keep a homemaker spouse…
Comment from : @speedwagon7562

Clark Howard just advised everyone to wait to 70 to take SS your thoughts ?
Comment from : @jh1982a

Great video I think math folks avoid i as a variable because they use i for imaginary numbers ;-) Would you mind explaining why your wife will take SS early?
Comment from : @toddburgette3472

Great tutorial and good information I was cracking up about the inside out t-shirt! You know Josh is the real deal because he is not worried about his fashion sense, he is only worried about the NUMBERS!!! Keep up the great work, you are helping more people than you know
Comment from : @richriley980

Just a big Ponzi scheme
Comment from : @skepticalmechanic

Josh, I like your message, but your Tshirt is inside out!!
Comment from : @robertnewton8249

Without messing with Inflation Retiring at 65: [Assuming 19 years payout] Social Security is worth $617K / CalPers is worth $1,115K for a total of 1,773K Retiring at 64 reduces that to $1,637K But, what value does a year of relaxation have?
Comment from : @tedjohnson4451

You sort of stretched this one out with fluff to get your 10min YT payment level An easier way to do this is find out how much an annuity would cost today to replace the payments SS has promised at any annuity site These calculations make be think about all those broke seniors who say they could have done better investing their SS after losing the rest of their money
Comment from : @robevans2114

Good stuff I’m assuming a similar calculation can be made for a pension
Comment from : @youngtimer964

Would this calculated amount go on a personal balance sheet? 10:30
Comment from : @dickchilders1820

Social Security follows the 430 rule
Comment from : @sergiosantana4658

Would it make sense to take into account the expected lifetime at the start of receiving social security? Because here we assume 30 years if I heard correctly?
Comment from : @martino76256

a million w/ 36 percent dividend yield is 36k yearly - and that's with no taxes that's inheritable too, unlike social security
Comment from : @economicdevelopmentplannin8715

Those value charts i got in personal finance class are great I guess financial calculator works too
Comment from : @venchenzo4493

Would this formula work for figuring out the value of a pension?
Comment from : @noramcginn5959

Mine would only be worth 613,800 if I started collecting in June I just figure it simple Yearly payout divided by 4 if I was using the 4 rule I threw my accounting text out that had present and future value tables I just want simple
Comment from : @leisure057blank3