How to Invest Unneeded Social Security Benefits

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Published February 11, 2019

A beneficiary who doesn't need the benefit can collect it anyway and invest it. But that isn't always a smart move, according to Joshua Escalante Troesh, owner of Purposeful Strategic Partners in California and business professor at El Camino College.

"If a retiree doesn't need their Social Security benefit, it is unlikely to be advantageous for them to invest it, either in stock or an insurance product," he says. "For the typical retiree who hasn't started receiving Social Security and is younger than age 70, delaying Social Security will provide a much greater financial benefit over their lifetime than claiming Social Security and investing."

. . .

"If the retiree is older than age 70, or has already started receiving their Social Security benefit, then the best thing would likely be to spend the Social Security money and minimize withdrawals from any 401(k) or Individual Retirement Accounts they may have," Troesh says.

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Joshua Escalante Troesh is the President of Purposeful Strategic Partners and a tenured professor of Business at El Camino College. To explore working with him on your personal financial planning and investment advising needs, simply schedule a free Discover Meeting.

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